Michael Kao: Cyber Hornets strategy turns into negative gamma for BTC ecosystem

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Hanna Syniavska

06.07.2026

Michael Kao: Cyber Hornets strategy turns into negative gamma for BTC ecosystem — BTC negative gamma impacts ecosystem

Michael Kao, CIO at Akadia Capital, discusses the long-term impact of a high-profile BTC accumulation approach he calls the 'Buy High/Sell Low' strategy within the ecosystem.

Kao describes this strategy as a permanent 'negative gamma' fixture, suggesting that continued aggressive buying and funding requirements are having adverse effects. He notes that a shift toward zero coupon convertibles may have been prudent, but instead, increasing hubris led to a situation requiring the funding of a large ongoing cash commitment.

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Kao has previously compared investing in CLO equity CEFs to selling short-dated puts, pointing to increased credit risk for investors. In a separate commentary, he questioned whether OpenAI's IPO filing could mark a saturation point in market activity. Both observations highlight his focus on funding structures and risk exposure.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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