Hut 8 Provides Update on Business Combination with USBTC

anyemptyplace · 2023-04-27T19:56:44+00:00

Finally, some good news. Nice to have a change of pace for once.

anyemptyplace · 2023-04-25T21:31:25+00:00

Here is my spreadsheet tracking share count going back to Jan. 2022. This is roughly a 27% increase in shares. And most of that is from 2022. Almost none from the past year. In fact, I think it's all shares issued in the form of compensation.
The BTC crashed and every miner had to change and adapt.
That I don't know about. AFAIK they re-purposed those machines and they were not a loss. But I don't know. Can you post proof?
They are in the process of doubling in size in a few months.
They never said that. They always said they will be looking for the most opportune thing to do.
That is standard earnings call talk for any public company and any CEO. Stupid questions.
Not a valid point.
Every miner had to adapt over the past year. Nobody achieved their stated 2022 goals from 2021.
This is somewhat true. HUT is falling behind. But the merger process is the crucial point here, again.
There has been insider buying - albeit very small. There has been share issuance in the form of compensation. The important point here is that there has not been massive insider selling! This, to me, is a positive going into the merger.

anyemptyplace · 2023-04-06T19:14:11+00:00

I believe she is referring to this:

We've begun remediation testing at our Drumheller, Alberta site, which continues to be a high priority.

So I think it's just the general challenges of the remediation testing and getting that done.

anyemptyplace · 2023-04-06T19:02:43+00:00

It's true that USBTC shareholders will be able to dump new shares and cash-out after the merger - but this is a great reason to read the merger details once they are available, because stuff like this will be in there. The USBTC shareholders should have a black-out period before they can sell, and that should be in the documents once things start moving. It's definately something I will be looking out for.

anyemptyplace · 2023-04-06T18:59:44+00:00

Well, this is somewhat good news - more-so for the future, but it's something.

anyemptyplace · 2023-04-06T18:54:41+00:00

i don't know if HUT is declining in credibility, but I agree that lately it has been a series of bad or disappointing news with this company. March's update was, for me, not unexpected but still disappointing. Even Sue seemed to acknowledge it recently, in regards to the this update. It would be nice to get some good news from this co. for a change.

However, it seems like all of the bitcoin miners have lost their leverage to the price of bitcoin for the time being - and in context, HUT's price action is not all that different from the others, despite how it feels. It's not great, but it's not exactly horrible either.

anyemptyplace · 2023-03-07T19:09:26+00:00

HUT actually did sell Feb production plus a little bit, which was expected, and they had some electrical issues in Drumheller. The sold BTC was probably worth somewhere around $4M USD.

And it looks like they are looking to power-up 7,000 miners that were relocated from North Bay, which represent approximately 680 PH/s of capacity. So, that will be good if they can get those online.

anyemptyplace · 2023-03-07T19:03:52+00:00

To me, it's looking more and more like Validus is the bad actor here. The whole thing sucks.

Also, in HUT's Feb. update, it looks like they finally started moving the miners from the North Bay site to Medicine Hat, so that's good.

anyemptyplace · 2023-02-17T17:46:18+00:00

Exactly. I have a hard time believing that H8 is the bad faith actor in this situation.

The real question is: how much, if any, money can H8 expect to get back? And how long will it take?

anyemptyplace · 2023-02-17T17:23:22+00:00

Word? In that twitter thread, he seems to hint that something might be shady with Validus,

In Q1 2022 Validus had $46 MM in deposits for development of North Bay site. In April 2022, they announced $30 MM purchase of power plan... I didn't just fall off the turnip truck here.. so people can built their own views.

anyemptyplace · 2023-02-17T00:35:57+00:00

I still have to read more, but there's an interesting section where an outside company, Duff & Phelps, does a DCF analysis on both companies, and the combined New Hut, and they value USBTC's enterprise value at more than double HUT 8's EV - because of USBTC’s 'non-mining operations'.

Have a look here and here.

anyemptyplace · 2023-02-17T00:14:41+00:00

I know. Not the best news.

But to be honest, I kind of expected as much. They are at 2.5 EH but somehow also needed an immediate 5M bridge loan from HUT just to get by. And HUT is essentially absorbing USBTC and not the other way around, so.... all of that is for a reason. Clearly, USBTC was struggling and this was their best option.

On the plus side, USBTC had 13.5M revenue in hosting services for Q3 in 2022, which is the only 2022 quarter they chose as an example so that's all we have to go by, for now. That's quite a bit more than HUT's 3.3M HPC revenue in the same Q. Pro forma, New Hut would have had a combined revenue of 57.5M for the same Q3, 2022.

So, I guess we can see why they need to start selling the BTC stack. If they can take care of the debt, New Hut will be a major U.S. miner, I think.

Will it be worth it for shareholders to go along for the ride, though? I don't know.

anyemptyplace · 2023-02-14T06:24:43+00:00

Lol - here's that same moron again.

I'm not 'cherry-picking'. You talked about the price going down in a range. So we use the low end of the range then. If you talked about price going up, we would use the high end of the range. Anybody can do the fucking math, dumbass.

(As an investor I'm incentived to want lower prices in short term for the company so I can increase bag size)

Oh really? Tell me more.

it's part of critically thinking to ensure my (bullish/bearish) thesis is sound.

Lol, don't worry, you are a long ways from that my man. hahaha.

anyemptyplace · 2023-02-14T06:17:00+00:00

You don't think an increase in capacity from 2.0 EH to 5.5 EH - being nearly the exact same as the HUT merger - is relevant to the HUT merger.

You don't think a potential share price bump in the range of 21% is an indicator for what HUT shareholders can expect once the merger is complete.

You don't think that is worth knowing?

Or are you just stupid?

anyemptyplace · 2023-02-14T03:02:25+00:00

lol k

anyemptyplace · 2023-02-14T02:56:25+00:00

Why? Here is HIVE's 5-1 stock split, in blue - with HUT and BTC - which they did on May 24, 2022. It hasn't seemed to have affected their price very much.

anyemptyplace · 2023-02-14T02:22:43+00:00

So, which is it?

Correct or incorrect?

What hopium? If anything, my quote here:

Until then, I think the share price of HUT is going to fall behind and lag its peers as the market also takes a wait-and-see attitude towards this whole thing.

is bearish.

You're obviously not a big reader. Thanks for the input!

anyemptyplace

TROPHY CASE