Member Info for Globex

I guess btbt's monthly report this week will have to show definitively what they have left. Monthly reports all round should be interesting. Mara and Corz have been consistent lately. Will help a bit next difficulty adjustment set to be biggest drop since halving. Entering heatwave season could explain hash pullback. Don't expect it to last either way. But we can probably expect Argo and Riot to make a song and dance about curtailment credits again.

This RNS must have dates wrong.

The Galaxy loan was first announced in December 2022 and set to run for 36 months, so maturity in December 2025.

Now they say they have been given an extension to December 2024 - but that would actually mean paying it off a year early. Only way this makes sense would be if they meant to say extension through to December 2026.

Times reports "Unease grows over £5.4bn ‘two-tier’ deal to take Hargreaves Lansdown private"

Then more promisingly: "There is speculation a rival suitor could emerge."

https://www.thetimes.com/business-money/companies/article/unease-grows-over-54bn-two-tier-deal-to-take-hargreaves-lansdown-private-nrhbnjcdc

Where BTBT said they intend to finance GPUs "with a mixture of cash and digital assets on the balance sheet", imo some uncertainty about what remains. The good news is market mind at all - this is the crazy thing about the AI bubble, exchanging coins for essentially a wasting asset in form of GPUs gets you a massive turbo boost.

https://www.cnbc.com/2024/06/27/crypto-catches-ma-frenzy-as-bitcoin-miners-chase-ai-boom.html

For capturing eth etf pump (if not already priced in), always option to buy direct, Coinbase good here as allows staking with no minimum holding.

@clskbull Soluna seems more legit with owning MW, amazing it went 5x from April low to June peak, very well done on that. Timing / reading these micro caps is v.tricky.

Forget it, no way they could afford it, for a company making year-on-year statutory losses the cash is dangerously low as it is.

This has definitely been the month for smaller players, and well done anyone who caught that BTBT pump this week. Did take a look at it but raised a few red flags for me personally.

Originally a Chinese firm as I understand it, something about a fraud a few years ago (which company denied) and fugitive exec, now US based but management backgrounds still a bit sketchy. Correct me if I'm wrong, but it seems they own minimal megawatt capacity themselves, instead renting infrastructure from others? Not sure how much eth/btc they have left after swapping coins for GPUs?

Still in these crazy times we are in it may well continue to pump, so maybe that's all that matters.

Some genuinely great opportunities out there, my view is for both for mining/AI hosting, those with scale/owning their own sites most likely to succeed going forward. GLA

That facility is conditional, has covenants including leverage limit (net debt to EBITDA) of 2.5x. If they breach that the lender can pull it instantly.

I think Agricore must be biased either as a superfan or closer to home, because every post he makes relates to Oak Bloke. So lets take a pinch of salt on that one.

As for this pick, even before delist notice this had dropped by a third YTD. Virtually every other pick of his has absolutely cratered. I genuinely do not know of a UK stock picker - at least one with an ego big enough to think his thoughts are worthy of publication - with a worse track record. Do you?

Agree. Management are totally dire. Clue from the start is how they floated at an extortionate price under false pretences, selling shares using a growth story that didn't exist. They've been playing same trick ever sense. I don't know why anyone would trust them. Kiosks, rentals, now clothes, they are utterly out of ideas.

The thing is it had the bones of being a reasonable business. Too late now because of the debt.

But before they took that debt on, if they had cut out all the BS like kiosks, and stuck to basics of selling used electronics/media for a profit, it would have been quite investible. Management thought they could fool the market though, as if this was some sort of dreamland where year-on-year losses would be tolerated. They were wrong.

Insider sells never good, let's be honest, let alone from CEO and at this level. Hasn't even used the old tax purposes excuse, just a straight up sell. Nobody will better placed to know the company's outlook. Tells us there's no buyout on immediate horizon. On that note I've taken that cue to follow the money and sell too. Maybe one to revisit in the 60s.

Let's be honest, this is not getting bought. The revenue fall is a real problem. It's a structurally challenged business with consistent year on year sales declines for at least the last 5 years now.

The practical consequence of that is they will never be able to pay back all their borrowings organically. Can't resort to capital raise to pay them off either when equity value now only a fraction of their debt. Lenders must be getting very nervous.

Oak Bloke must be nearing the worst stock picker in history

Could also be the material uncertainty over going concern from highlighted risk of covenant breach within the next financial year. They suggest minimum ebitda and minimum £5m liquidity covenant being key here.

They say "softness in sales in the short term is expected" and that "final months of FY24, and early FY25, have not reached the levels of the preceding year". So to buy in now relies upon believing them that this decline is temporary.

Also FCA investigation with outcome still uncertain.

Does feel very 2020 cycle to be diversifying with an altcoin rather than HPC. And a big bet on Kaspa to have chosen it ahead of POW alternatives with larger market caps like bch or ltc. Chaebol will definitely approve!

It's true the downside with the AI players is reduced exposure to btc they may well lag when it pumps. Unless AI sentiment pumps harder? Mara and Clsk still look good to me here for the btc side, both seem to be holding up relatively well considering.

The other challenge is CDT on the cusp of dropping below $1, if that continues for a set number of days Nasdaq would issue a delist notice. They'll then need to reverse split shares pronto or it's game over. They'll be able to add that delist notice to their collection after the other recent one for another breach of some other rule.

CDT Management seem totally asleep at the wheel. Maybe that's what Vela saw in them!

Etotheipi

You asked why would the dividend be cut. I answered that question for you.

Now instead of thanking me you're trying to argue by confirming that you will indeed be getting a dividend cut. Have to laugh really.

The challenge is they own the least desirable offices of all - provincial, ageing and out of town. Leads to horrific vacancy rates. That's before we get onto the poor management and basket case financials. Far superior Reits out there. Not saying this with hindsight either - posted similar when this was being ramped at 30p+.

The dividend will be cut because the share count is trebling. Dividends are paid per share.

I don't think anyone here should be recommending what someone else does with their investment.