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Crypto Whale Sells 300 WBTC, Incurred $39 Million Loss
Key Takeaways
- A crypto whale originally purchased $263 million in digital assets at peak prices in August 2025, utilizing a circular loan strategy.
- This investor has faced a realized loss of $39.15 million due to falling market prices, having exited various positions with substantial losses.
- Recently, following a surge in Bitcoin prices above $97,000, the investor sold 300 WBTC at $97,053 per coin to settle outstanding loans.
- Utilizing circular loans involves high risk, demonstrated by the significant financial loss experienced by this whale investor.
WEEX Crypto News, 15 January 2026
The cryptocurrency market, known for its volatility and unpredictability, often sees large-scale investors—commonly referred to as “whales”—making significant market moves that can dramatically impact prices. One such whale recently made news after suffering substantial financial losses under a complex investment strategy.
Circular Loan Method Results in Major Losses
On-chain analyst Yu Jin reported an investment strategy that turned sour for one crypto whale. In August 2025, this investor engaged in a circular loan process to acquire $263 million worth of digital assets, including 1,560 Wrapped Bitcoin (WBTC) and 18,517 Ethereum (ETH). Initially, the whale bought WBTC at $116,762 each and ETH at $4,415, targeting potential gains from market upswings.
However, the market’s downturn forced this investor to liquidate some assets, resulting in a hefty financial setback. By strategically leveraging loans, the investor hoped to capitalize on price increases but ended up realizing losses as prices fell.
Exit from Ethereum and Partial WBTC Sales
The declining market conditions required the investor to exit their positions in Ethereum entirely, resulting in a loss of $25.29 million. In an effort to mitigate losses, part of the WBTC holdings were also sold, further incurring a loss of $13.86 million. Despite these sales, the investor held onto 1,000 WBTC, valued at approximately $96.81 million based on the prevailing market rate.
In a recent strategic move following Bitcoin’s recovery past the $97,000 mark, the whale successfully sold an additional 300 WBTC at $97,053 per coin, converting it into 29.11 million USDT. This transaction was primarily aimed at repaying outstanding loans, taken in anticipation of market recovery.
Circular Loan Strategies in the Crypto Market
Circular loan strategies—often used to maximize leverage without immediately closing an initial position—are not new to the crypto market. Investors engage in taking loans against their crypto assets to buy more of the same assets, often amplifying their market exposure significantly. While these strategies can lead to substantial profits in bullish markets, they also expose investors to massive risks, especially during market corrections.
The cryptocurrency market’s intrinsic volatility means that leveraging capital via loans increases exposure and potential losses during downturns, as evidenced by this whale’s experience. Cryptocurrency prices fluctuate unpredictably, and as demonstrated, optimism about price increases can quickly turn to losses.
Market Lessons and Implications
Investors in the crypto market often use these incidents as learning opportunities, understanding the high-risk nature of leveraging in crypto investments. The whale’s substantial losses highlight the importance of risk management and the volatile potential of loan-based strategies.
For future investors, this example emphasizes the need to thoroughly understand market dynamics and possible outcomes before engaging in extensive borrowing strategies. Additionally, the necessity of diversifying investments and maintaining caution with market strategies is crucial to mitigate possible significant losses.
In light of this, platforms like WEEX offer resources to educate their users about investment risks, emphasizing the importance of thorough research and prudent financial decision-making in the volatile world of crypto trading.
FAQ
What is a circular loan in the crypto space?
A circular loan refers to the practice of taking loans using crypto assets as collateral to purchase more of the same assets. This approach seeks to maximize investment exposure by leveraging up additional assets without liquidating initial holdings.
How did the whale incur such substantial losses?
The whale purchased crypto at market peaks using loans. Subsequent market declines forced the sale of these assets at lower prices to repay loans, resulting in realized losses.
What happens when cryptocurrency prices fall after purchasing assets with loans?
If cryptocurrency prices fall, the investor may need to sell assets at a lower price than they were bought to repay the loan, leading to potential financial losses as happened in this case.
Why did the whale sell 300 WBTC recently?
After Bitcoin prices surpassed $97,000, the whale sold the 300 WBTC to repay part of their outstanding loans, converting the sale into 29.11 million USDT.
What precautions should investors take when leveraging crypto loans?
Investors should ensure to have a sound risk management plan, potentially including diversified holdings and consideration of market volatility’s impact on leveraged positions.
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Sun Valley Releases 2025 Financial Report: Bitcoin Mining Revenue Reaches $670 Million, Accelerating Transformation to AI Infrastructure Platform
On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.
• Financial Performance:
Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.
Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.
Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.
• Mining Operations and Costs:
A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.
The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;
The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.
As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.
• Strategic Progress:
The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.
CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."
"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."
The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."
The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.
The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.
This includes:
· Cost of Revenue (excluding depreciation): $1.553 billion
· Cost of Revenue (depreciation): $38.1 million
· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)
· Mining Machine Impairment Loss: $81.4 million
· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million
The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.
The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.
The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.
The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.
The total annual operating costs and expenses amount to $1.1 billion.
Specifically, they include:
· Revenue Cost (excluding depreciation): $543.3 million
· Revenue Cost (depreciation): $116.6 million
· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)
· Miner Impairment Loss: $338.3 million
· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million
The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.
The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.
As of December 31, 2025, the company's key assets and liabilities are as follows:
· Cash and Cash Equivalents: $41.2 million
· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million
· Miner Net Value: $248.7 million
· Long-Term Debt (related party): $557.6 million
In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.
As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.
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