There have been widespread rumors lately about a well-known university being forced to tighten its budget due to huge losses from investing in cryptocurrencies. The claims vary widely, ranging from $6 billion to various other figures. Although the official statement has come out to deny the astronomical number, and they have dismissed the rumors, a review of the financial reports reveals that the situation is far more complex.

The university indeed admits that its investments have incurred losses, with a total loss of $1.5 billion in 2022. This figure alone is not insignificant. However, the key point is that many people are only focusing on the topic of cryptocurrencies and overlooking deeper issues.

Why do institutions fall into such predicaments? It’s often not just due to poor investment decisions. The real problem lies in debt-driven expansion and the pressure of high-interest debt. When your financing costs are already high, and combined with investment losses, financial pressure snowballs. This is also why, even though the official denial of the exaggerated loss figures was issued, the budget tightening measures are still swift and decisive.

This serves as a stark warning to the industry—entering the crypto asset space is not a simple matter. Strategy, risk control, and capital cost management must all be thoroughly considered. Otherwise, no matter how large the scale, it’s difficult to escape the squeeze of financial pressure.