Micron ADR Premium has not converged in the past two weeks and has expanded to 33%, with a $29 million fund size. The address for "Arbitrage Convergence" has been consistently in a loss position.

BlockBeats News, July 23, on Hyperliquid, SKHX is temporarily at $1321 and SKHY is temporarily at $176.09. Adjusting for a 10:1 ratio, 10 ADR units are worth $1760.90, a 33.3% premium over the Korean stock price.

Since SKHY's listing on July 10, based on the two-contract daily closing price conversion, the ADR premium has not disappeared, ranging from approximately 16.45% to 33.30% (lowest on July 11, highest on July 17), and has now risen to the upper limit of the range.

According to Hyperinsight monitoring, a (0x2ab3) whale that is trading price spreads is using a strategy of longing Korean stocks and shorting US stock ADRs to bet on narrowing the premium. The current total position of the two legs is approximately $29.058 million:

SKHX (10x long): Holds 12,000 units, valued at approximately $15.852 million, with an entry price of $1280.7, unrealized profit of $482,000, and liquidation price of $1093.7;

SKHY (10x short): Holds 75,000 units, valued at approximately $13.206 million, with an entry price of $167.2, unrealized loss of $660,000, and liquidation price of $208.9.

Based on the current average entry prices, the corresponding ADR premium at the time of entry was approximately 30.61%; the current premium has expanded by 2.69 percentage points, and the ADR short position has lost more than the Korean stock long position, with a total loss of approximately $177,600. The funding rate shows that both legs are currently on the paying side, and if the positions and rates remain unchanged, the total hourly cost will be approximately $716.53 and the daily cost will be approximately $17.2 thousand.

The whale is still adjusting the spread position today: in the morning to noon, it first closed out a total of approximately $16.0484 million in position for both legs, with an API closedPnl total loss of $180,800; in the afternoon, it reopened positions of approximately $9.0121 million, including a $4.5578 million long position for SKHX and a $4.4543 million short position for SKHY. At the snapshot, there are currently no open orders.

Additional data: Using TSMC as a reference, the current ADR premium is approximately 6.96%. Micron's current 33.49% ADR premium is about 4.8 times, nearly 5 times. Historically, TSMC's ADR premium rose to nearly 90% during the dot-com bubble period; during the issuance of ADS in June 2000, the issuing premium still reached 43%.