Comment by throw-qqqqq
12 hours ago
Binance has a market cap just shy of $100B, so a $5.8B sure hurts, but it’s not a showstopper I’d say.
12 hours ago
Binance has a market cap just shy of $100B, so a $5.8B sure hurts, but it’s not a showstopper I’d say.
A market cap predicated on the price of bitcoin. A market cap is not funds available, it's just the valuation of the market, which is fickle.
Market cap has nothing to do with free cash to absorb a $6billion loss. Money is also going to pour out of Binance now, one would imagine.
> Market cap has nothing to do with free cash to absorb a $6billion loss
I agree. My wording was imprecise. I was trying to give an idea of the size of the company/ecosystem, using BNB’s market cap as a proxy.
As Binance doesn’t publish their financial statements, it’s difficult to get the more relevant metrics, like FCF.
It really hurts when there's this much misunderstanding of market cap vs. revenue. P/E ratios exist for a reason.
What an arrogant assumption! I know the fucking difference between market cap and revenue.
I also know Binance is a privately held company that doesn’t publish financial statements. If you can tell me their P/E, go right ahead.
Not that I think P/E would have much use here. P/E is a relative valuation metric (how cheap/expensive).
The relevant metric would be something like FCF, as gizajob wrote, but again: not available.
I was trying to give an idea of the size of the company, that is all.
boss: did you just send $5B of our company's liquid capital to a nigerian prince?
me: no worries boss, our market cap is $100B
boss (who is also the tooth fairy): oh right cool np
That $100 billion is exchange holdings, i.e. customer funds, not market cap. It would be highly illegal for Binance to use any of that $100 billion to cover this loss.
That's assuming these AI hacks stop, right? Why would they, ever?