Member Info for Hexam

"wouldnt imagine their worried about racing themselves too much"

...to be fair some have been guilty of chasing their own tail a bit :)

It's a limited resource (each day and in total) that all miners are trying to mine. Of course it's a race (against eachother and to a certain extent the clock).

I'm afraid I don't know the history as only recently started following them but I suspect It's more of what they're doing now - i.e. a fondness for equity raises - and maybe simply not overextending themselves? It's certainly not because they are the most cost efficient (though perhaps their capex spend has been much less than say ARB who have maybe built much more for the future). Their debt is also relatively small (about $25k) so it's not that.

It could something else funky but tbh I'm more interested in where they are and where they're going than how they got where they are today.

I just wish their efficiency was better as it's pretty shabby at the moment compared to most.

In my view Hut8 have the strongest balance sheet of the miner's I've looked at. If they are at all close to folding then Arb must be positively on the brink. Hut 8 can survive comfortably for months without dipping into HODL at all and much longer depending how much they raise from the current program and how must investment they make in growth. Arb meanwhile are likely to need more funds very soon unless they hold up the intel delivery or else they will run of cash and BTC completely.

Personally if/when BTC recovers close to ATHs I'd prefer to see Hut sell at least enough BTC to pay for normal monthly costs but whether by luck or by judgement their strategy has put them in a very strong position of not being forced to sell BTC when prices are very low (like ARB, BITF, CORZ etc.).

Yes the jury is out but the reason I thought it more likely to be a change of schedule is because they used the phrase "Due to a change in estimation technique of the machine depreciation" which doesn't scream of a writing off (which for the very old machines would not be enough anyway and as you suggest, and as PW said in the accompanying video, some had already been fully written down after completing 3 years). They do mention the Core Swap though and that could be significant if they have written off the old machines and started depreciation afresh with the new ones - though as that is mentioned separately it isn't part of the 'change in technique' presumably. We won't know for sure exactly what they've done until the results are published so could be one or more of the above or something completely different!?

Or both!

AB - One thing you may have missed on your (hopefully lovely) hols is something I think we may have discussed before and that is the depreciation schedule. They have done some adjustments (in the last update) and to me it looks like they may have moved to a 5 year writing-down of machines (like MARA) from three. Could be something else entirely though so will be interesting to see what the results tell us. Makes sense for them to do this if they have - as I think we agreed before (though may be imagining this)!

Actually 'top-slice' and 'taking profit' are different as taking profit can refer to selling all your investment whereas top-slicing only ever refers to selling a part of it. Just saying for those that want to get the jargon right if that's really important to them...

*costs per BTC mined (not per EH)

AB - Yes about 10-15% of their BTC comes from their ETH mining (like ARB with their zcash they convert/get paid in BTC directly). They do indeed have an additional business ('High Performance Computing') which brings in currently just over $1m per month in fiat revenue. A nice to have but could be a distraction.

Other concerns about HUT are there efficiency (not that much better than ARB) and their costs to mine (without overheads) per EH look a bit high but their overall costs per EH are not bad (and lower than ARB in Q1). I think at least part of this is due to them including more in their 'cost of sales' and less in other costs.

Will be interesting to see how they compare with ARB Q2 but it will be an unfair comparison I think as ARB had such poor Q2 mining numbers (especially May) which will distort the metrics as a lot of the issues were temporary (hopefully).

They have a different approach to Arb (and others), not saying it’s better but good to hold both as a hedge. Yes, raising money not so good at low sp but they haven’t had to sell any BTC at low prices like many - and this raise pretty much ensures they won’t have to in the foreseeable future. Swings and roundabouts.

As a HUT holder very happy with this. May hurt sp short term as more supply of shares and some may react to ‘dilution’ but can only further strengthen an already strong balance sheet which is why I went for them in the first place.

Squid - you really need to read up on this.

I am assuming the questioner is talking about issuing new shares at 8p and I used the current (US close) sp of 10p. Therefore the resultant sp will be somewhere in between (initially).

If they issue new shares WITHOUT raising any money then yes your example would be correct (but why would they do this)? Once again you've ignored the new money raised by the new shares and just considered the number of new shares only.

One thing he gets very wrong in the video (apart from keep using 'earnings' when he means revenue) is that rising interest rates will have a big impact on interest payments. They won't. If interest rates double then the interest paid will rise a lot less than this as the fixed rate element of the interest currently paid is much higher than the part linked to bank rates (LIBOR). A 1% increase in rates would lead to just a £40m p.a. or so increase in interest payments for example.

About 9p.

Appreciate your tongue-in-cheek reply Insider but I won't be putting IMO after my comments - unless I suggest to anybody what they ought to do with their money which is rare, let alone telling them what to do with it which is never. But if you think I'm crossing the line at any point please feel free to point it out :)

"Me saying “SELL BEFORE THIS GOES BUST” is not allowed but others saying “BUY BEFORE THIS RISES, SHORTS ARE CLOSING NOW” is allowed in your crayon written rule book. Look over my posts, if even one person had listened to my advice..."

Actually it is against the 'rule-book' of these forums to give investment advice so both of the examples you give above are not 'allowed'. I'm not sure where you stand legally either by giving the advice (as you have called it rather than opinion) as I presume you are not qualified to give investment advice (judging by the contents of your posts) or that you know the individual circumstances of each poster and their risk tolerances. You may be ok if you are not receiving payment but am not sure.

Point is you do not know what is going to happen next. You think it is the end for CINE and that may be the case. Fair enough. Equally though they could be successful in refinancing and on terms which could see a future share price far higher than it is now. You don't know which way it is going to go any more than I or others do so please stop telling people what they should do as you don't, in fact, have any right to do so on this particular site and maybe legally too.

That just has to be the worst post talking about numbers that I've ever seen. So many things wrong with it that it's not worth starting to put them right. But thanks for making me chuckle on a gloomy day for CINE.

If that RNS cleared the air I would hate to see what vague looks like. How much these shares are truly worth at the moment depends on how successful their attempts at refinancing are and on what terms.

Mooky will have a much better idea of that than all of us (despite the many idiots today already professing to know what the outcome will be). So I cannot believe any trade he makes now will not be viewed as insider trading.

"Where will it rest tomorrow if after todays RNS Mooky is one of those who is selling down his holding in anticipation of any deleveraging?"

He can't trade at the moment - too close to results. Also can't trade anyway if he knows big stuff we don't. And this is big stuff.

And how many more times. Debt is $5bn.