Member Info for WolfofWarks

If you look at it from a fundamentals perspective and look at today’s update you can see why traditional investors and/or instis would be deterred from investing in companies in the crypto space and especially on the dour old LSE.

Today’s update basically told the markets that this month we have lost $13.2m at an operating level.. This is because of three factors that are completely out of our control - the mining difficulty, the value of btc and the value of USD against GBP. On the flip side to this when all three of these factors work in our favour we pile the profit on. These factors work against the macro in the current climate and we haven’t got a hope of climbing over £1 in a high inflation, high interest rate environment. This year is about accumulating for me.

I honestly believe we need to reconsider holding and start functioning like a proper business that makes money. Have a policy of HODL but restrict it to say 25-50%. Then we can use the cash gained to keep the lights on and reduce debt rather than constantly raising or taking on expensive debt. If any cash is then left over we could trade btc at opportune moments and create even more cash and value for shareholders.

Basically, I think the business model needs to change, it’s not that hard to make money from crypto. I bought some more btc this morning, you can spot the bull and bear runs pretty easily.

“ They got their items wrong for Christmas 2021, too many dresses, what's that going to do to their stockpile plus the cost of too many dresses for them.”
They said the returns % was high due to a high dress mix. That’s got nothing to do with having a stock pile pile. Simply that we SOLD an exceptionally high number if dresses which are in item which has an exceptionally high rate of return. It does not mean the warehouse is stacked with unsold dresses.

Regarding the cash position the balance sheet is a snap shot at a certain point in time. We are making sales day in day out. We have no idea if what the current cash position is, the timing of capital payments, etc, etc.

For those talking about Nasdaq listings this will offer no tangible benefit to us shareholders as it doesn’t not increase the value of the company, in fact it’ll mean a cash raise, ADRs and therefore dilution.

In theory while moving the rigs would result result in a drop in coins mined it shouldn’t affect the margin % as the costs should be directly relative. For example, if you mine less coins you should be using less power. It would depend on the element of fixed cost in there, like perhaps hosting.

I accept this is a bit academic though.

Hi Jamsey - if you look at the reconciliation at the bottom “ Charge in fair value of digital currencies” isn’t including in the mining margin number - otherwise it would be a huge loss.

I’m pretty sure the mining margin is revenue less direct cost like electricity, hosting and other direct DC costs.

Hi Hexam - do we know how linear this relationship is?

“ Average difficulty increased in the month by around 6% but the number of coins mined dropped by 20% so think the line "This reduction during January is primarily due to an increase in network difficulty" is at best disingenuous and it would have been nice to understand a bit more about why the mining figures are so poor for January (or were so good for December).”

This year won’t be good but will offer a good chance to buy for LTH who want to top up, average down and for new investors wanting in.

It’s just a case of where is the bottom.

Kallu - what about the record wage inflation to offset. Plus I’m sure your average boohoo customer isn’t at home agonising over whether or not they can make this months fuel bill.

I would have thought this would be more likely to affect your Primark customers who is less likely to enjoy the wage inflation (NMW) and has now has even less disposable income.

I’d wager the swelling middle classes like previous recession will remain largely unaffected.

https://www.investorschronicle.co.uk/education/2021/10/13/the-hut-group-adjusted-earnings-fact-or-fiction/

I haven’t read it in any detail but I’m pretty sure THG have been leaning a bit on some of their accounting treatments. I remember reading an article in the investors chronicle where they were treating many everyday company costs as adjusting items and making the core underlying profit look better then it actually was.

Meta’s ad revenue has been heavily affected by apple’s opt out app policies. It’s nothing to do with the meta verse which they haven’t really got started on yet.

Of course they’ll be insured. In essence it’s a data centre regardless of what those computers are doing.

Year end update March

My Shopify shares went down by 8% then up by 7% in the post trading.

Mental!

This is the perfect stock for the current macro conditions.

Ted has been decimated by scandal in it’s past, the founder left but I think has since returned and there were huge accounting discrepancies.

Not under the current leadership though who are (hopefully) turning things around. Obviously that recovery story was then halted when the pandemic hit.

Hi Mary.I agree.

There’s a potential great recovery story here as well as a large holder and potential takeover for when that happens.

I’m a believer in ‘when everyone is selling, buy’..

I’m underwater here but not in any rush and happy that long term it will come good.

Forget about the pandemic the underlying trend is towards online anyway.

Plus factor in there are hardly any shops left anyway. In my market town House of Fraser recently shut leaving Superdry, an out of town retail park Next and the supermarkets.

I'm at least 15 years from shopping at M&S for anything other than food!

A large portion of boohoo’s demographic 18-25 will not be worrying about the cost of energy, etc.

They keep banging on about the cost of living crisis.

There’s also record wage inflation.

The left wingers are driving the narrative.

The SEC don’t set accounting rules.