RE: Texas build rather than rent/buy unit?7 Oct 2021 17:54
Rorydinho
“ Personally, I think PW and co got the strategy wrong with this.”
It is a totally different strategy from the mainstream btc miners, buy, buy, buy, mine, mine, mine. We will know with 9-12 months if it was the wrong strategy.
“The strategy should have aimed to maximise hashrate as soon as possible; through completely filling the facilities in Canada and through hosted machines.”
If you think back a few months, the world was awash with unwanted mining capacity. Well, not unwanted, as I would have liked a few S19s to turn up on my doorstep, as a surprise. The main limiting factor, as universally agreed, was not rig availability, but infrastructure availability. Hence the strategy.
“Growing a big hodl prior to the bull run whilst total hashrate was low would have meant huge profits during the bull run.”
Bitcoin price is well below the $64k of springtime, PLUS the price of rigs fell, although it is now starting to recover. Maybe PW trusted the stock to flow diagram and decided to prepare for the next leg of competition, rather than get in a bun fight for rigs? I agree that a bigger hodl would be better, but you can’t be everywhere at once, or spend the same dollar twice.
“ARB could have bought Texas many times over in 2022 under the above strategy.”
What would have happened if the project, and let’s not forget that we bought a shovel-ready project, and NOT just a site? What if MARA or RIOT had bought it? I think the whole project was mapped out and executed SPECIFICALLY with a view to sell it to PW. I think this plan has been in place for a couple of years. Similarly, with ePic. Can you imagine the DD, then the flak, if PW wanted to lend $8m to Henry Quan, to develop novel architecture rigs for ARB? Me neither, but he placed an order, cancelled an order, but didn’t ask for his cash back. Does that sound like normal business practice to you? Me neither. My view is that it’s a covert loan, because he regards the ePic guys as geniuses and he wants both Canadian companies to work , grow and prosper together, hence the hosting of ePic at ARB facilities and joint development teams.
“It is what it is.”
Definitely, and mostly misunderstood, in my view. But we are on a journey. Let’s see where it goes.
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