Member Info for Hexam

They sold a $100m-$150m asset for $65m and like AB I think they are overvalued now but also like AB I think they could be overvalued by more in the coming days and weeks.

Apologies to HC for answering the question that was put to him.

"Cost is probably like $60m now.
Helios OPEX offloaded."

Helios OPEX replaced by Hosting Fees which will include margins for Galaxy.

Costs pre-deal were running at over $100m - don't see why they would running much less now (until they get decent PPA).

"Is this a 35 million mktcap company?"

Yes.

Speechless

"Revenue of at least $40-50m/year at todays' Bitcoin price."

And costs about $80-$100m/year.

Might just explain the market cap of £35m?

"The RNS states 2.3EH. I take it that is in addition to the current 2.5?"

No!

Chae - He just screams his own book. He'll be pumping it like crazy if he buys in.

Really PI, please read it properly.

PI - Your quote just says it pays all indebtedness to NYDIG and North Mill. It has not repaid the notes (£33m) or the mortgages (£3m). So total debt with the new loan is around £65m - less than what the assets they have left are worth.

I did actually but my average is still 60p. The sp may spike but the company is now technically insolvent as far as I can see and its longer-term growth potential severely stunted by all this - so don't think I'll be seeing that 60p again.

“plus all the old debt is gone”

Not so. All the notes still remain as do the mortgages for Canada.

All this should lead to an increase in sp today but the company has sold its crown jewels on the cheap and the balance sheet will look pretty sick at year end plus profits will take an additional hit from impairments/loss on sales.

Immediate survival guaranteed but a much weaker company longer term. So maybe a good day if you got in cheap as now may have an exit route but not so great for LTH who are already heavily down.

“It certainly could be clsk, but I don't know how that would work with nydig, how would they get their money back?”

I think this depends on the type of sale with either the buyer taking on the loans or NYDIG being paid from the proceeds of the sale.

I agree that Avatar 2 could end up bearing Maverick overall (WW) but I was just referring to 2022.

The first film certainly had legs so hopefully this one will also keep bringing in revenue long into 2023.

“Cruise is non shorter ?”

I’m saying you’re definitely NOT a shorter.

Agree with you totally regarding Avatar and the ludricous statements made by Maid.

Elvis - that’s screens not revenue. Just divide CINE revenue by total US revenue to get market share. That’s just over 15% for first half of 2022.

Large muktiplexes like CINE generally have a lower average revenue per screen as the blockbusters are more thinly spread.

Elvis - CINE’s market share is about 15% or so in the US.

As to how “dominant Avatar US are versus all other Cine takings, all markets, all films for Year 2022” it won’t dominate but will be a small fraction. Currently Avatar 2 is the 8th biggest film in the US in 2022 - it might make it up to second by the end of the year but it will still be a long way behind Top Gun Maverick.

I actually thought the $5bn was a typo by maid but he’s actually standing by it.

Cruis is no shorter, he’s just pointing out that $5bn WW box office for Avatar 2 is utterly ridiculous. The very most it could hope for is around $2bn and that’s a very big ask.

Also, correctly, Cruis has pointed out that the bulk of the revenue for CINE comes from the US - followed by the UK and Ireland and then finally the Rest of the World which for CINE is Israel, Czechia, Slovakia, Poland, Romania, Bulgaria and Hungary. So no other country matters for CINE including China and the rest of Asia.

It’s not about being ‘negative’ but simply avoiding nonsense. Mind you just a minimal amount of research is all that is needed to know that Avatar 2 will not be nearly twice as big as Avatar 1 and that CINE only operates in 10 countries out of the 200 or so in the world.

I’m not sure but it just looks like existing shareholders will get some shares in the new company and warrants that will enable them to buy more if the sp reaches certain levels? How these relate to the 3% in the article (if the article is correct) is unclear. For example do the warrants give the possibility of having more than 3%?

My reading of it could be wrong though so would be useful to get other thoughts?

Are you sure it’s non-dilutive? This article suggests:

“Convertible noteholders are leading a bankruptcy refinancing of Core Scientific with a plan to acquire 97% of the equity in a reorganized version of the crypto miner in exchange for up to $75 million of debtor-in-possession financing.”

This does sound much more plausible to me in the circumstances.

https://www.forbes.com/sites/ninabambysheva/2022/12/21/core-scientific-noteholders-seek-to-acquire-97-of-crypto-miner-in-bankruptcy-restructuring/?sh=5a84611b2455

"what’s corz monthly burn rate when they only paying Leccy and staff bills"

I think they are generating cash on this basis (assuming they sell all BTC mined) rather than burning it - but not very much. Reasoning below if interested:

In Q3 revenue from their three businesses (mining, hosting and equipment sales) was $162m

The total direct costs for that revenue (excluding depreciation) was $125m
In addition they had overheads of $49m
So total costs of $174m BUT of this $30m was paid in shares so cash costs for 'leccy and staff' were $144m.

So that gives around $18m positive cashflow in Q3 (or $6m per month) EXCLUDING any Capex, Interest etc.

Of course that is based on higher BTC of over $21k and it's now around $17k so that drops mining revenue by over $15m based on Q3 numbers so broadly back to break-even.

However, power costs should also have come down and they may already have made other cost savings - though mining difficulty has increased 20%. My best guess is that they are still generating cash if you just consider staff and power costs but not perhaps as much as they are making out. Of course if you include interest, loan repayments or capex then you soon run into negative numbers.