Bitfarms Ltd T.BITF

I found this about the Warrents

[RagingBull3]

"Bitfarms’ net financial expenses for Q1 2021 were $23.4 million compared to net financial expenses of $1.0 million in Q1 2020. The $22.4 million increase in net financial expenses was mainly related to a non cash $19.5 million lossrecorded on revaluation of warrantsin Q1 2021. The warrants issued in connection with the private placement closed on January 7, 2021 had a strike price denominated in Canadian dollars, which is different from the Company’s functional currency of the U.S. dollar. As a result, fluctuations in the Canadian to U.S. dollar exchange rate could result in the Company receiving a variable amount of cash in its functional currency in exchange for the exercise of warrants and issuance of shares. The possibility of variation in the settlement price in the Company’s functional currency results in the warrants being classified as a liability that is measured at fair value through profit or loss. The strong performance of the Company’s share price in Q1 2021 resulted in a higher value being attributed to the warrant liability and the common shares issued in settlement of the liability, resulting in the noncash loss described above. All warrants that were classified at fair value through profit or loss have been exercised as of Q1 2021, as a result this expense is nonrecurring. In addition, there was a $2.6 million loss on revaluation of an embedded derivative recorded in Q1 2021 due to the early retirement of the Dominion Capital loan, compared to a $0.1 million gain on revaluation of the same embedded derivative in Q1 2020. The embedded derivative was derecognized in Q1 2021 when the Company extinguished the loan with Dominion Capital."

Still not clear to me... can someone dumb it down for me and maybe show how they got the numbers for their huge loss?

[AlphaJ]

neither did I. All you have to know is they raised cash and bought sh!t with it lol. Most important take away. It's a nonrecurring expense, which Is what I said early.

[HarfanddesNeiges]

Well explained. It's clear for me that the company took the right strategy. GLTA

[AlphaJ]

oh yes, it does say re-evaluation loss. I'm not sure. Maybe ask Bac0n. (S)He seems a bit finacial savvy. Let me know what you figure out.

[AlphaJ]

the main take away for me. Is they had a 7 million loss. But they have 30 million in BTC. And that 30 million doesn't count towards revenue unless they sell it. It counts towards assets like inventory. It's like a furniture store building 10 tables and it's sitting on the shelf. At a $1000 each that $10k in unrealized revenue. The bueaty is, the wood and labour is already accounted for

[HarfanddesNeiges]

Agreed. GLTA

[AlphaJ]

Right? People who are narrow minded don't see it. If they sold their 548 BTC. Bitf would of made $23 million usd in profit. Time x were projecting 100 million usd in profit. At 10x earnings which is pretty conservative. That makes bitf a 1 billion dollar USD company. Severely undervalued

[AlphaJ]

Times 4x for the year****

[remyken1509]

Whats clear also is that bitcoin prices sank from 63k to 40k losing almost 50% of value. multiply this by 1000 btcs and that hurts (they claim to have saved 1000 btcs, not 568) When you have that kind of money sitting in your coffers, and you still take a hit on your bottom line implies two things: creating shareholder value is not really your main driver or for whatever the reason, you cant tap

[AlphaJ]

I've heard this twice. They earned 568 BTC by the end of March 31st Q1. They have around 1000 BTC now. I don't think the price fluctuations will matter long term. BTC tend to go up over time. I think hodling shows they believe in the industry and they a true crypto play. It's doesn't make sense to sell when at the same time we're all hoping other institutions buy and hold to

[remyken1509]

Agreed AlphaJ. I am not saying sell all of it, but optics looks weird: having all that money in your coffers and still manage to report a loss?

[AlphaJ]

who cares? It's a technical loss using traditional accounting standards that measure profitable in an old school manner. Miners are one of the few business, maybe only business where their "inventory" is the hardest money on the planet...crypto. There is no accounting standard that can even account this in a meaningful way. What happen in 10 years when they have to accept crypto as

[RetireAt45]

hey there Delta Dud (the self proclaimed Alpha for those that don't understand his true status)...was just reviewing the financials....interesting yet somewhat concerning I would think...here is a little sample... i took the same quarter last year info found on Stockhouse and filled in some of the data from this quarters financials....(I didn't do the entire list, just the most important

[AlphaJ]

I don't know 45, if I saw an 8 year old kid beside a 4 year old kid. Even if the 4 year old was about the same size as the 8 year old. I'd assume the 8 year old would beat the 4 year old up. But when the 4 year old turns 16 and he's now bigger then the 20 year old. That 16 year old might considering he's growing much faster would beat the snot out of the 20 year old. But it's

[RetireAt45]

thanks for the thought provoking response....you never fail to disappoint.... and aren't you always the one saying that other posters do not respond to facts and data?? hope it didn't hurt your childish intellect too much composing that thoroughly concise rebuttal.... are you still standing outside of Nordstroms in Vaughn waiting for anyone to show up?? thanks for the laugh yet again..

[bullFire]

  LOLLLL this is a response from a drywaller. Just wow lolllll funnest response I've ever seen. You still in 4th grade pal? Excellent facts and data presented.   

[bullFire]

This still kills me. Laughing out loud. Excellent facts and data presented.   

[ottov77]

What still kills me is that no-lifers such as yourself post negative nonsense here around the clock as though it might have some effect on the stocks movement ..... good grief mom must be proud.

[JackCross]

Negative posting/bashing are mostly spillover from the HIVE board where a few parties are unrelentingly bashing that stock over there. It's resulted in a lot of mud slinging back and forth, and a lot of negative spin to any news that's being posted.  Lots of trolls and armchair CEOs. Your post is spot on, the market doesn't care about the happenings in a minor corner like

[AlphaJ]

I'll admit, I bash hive. It's really entertaining to see how emotionally attached hive guys are to hive. What funnier is, hive hasn't made them any money in months even though etheruem went up 5x. They know bitf is going to nasdaq global. And they still won't give up on hive lol. I think they do it just to spite me, not realizing we getting rich over here regardless of their who

[AlphaJ]

ego issues*

[AlphaJ]

And the thing that makes bashing hive sweeter. I just focus on hive. But these guys get so upset they start making personal attacks. Some of them wished for my arrest and crazy sh!t. It's a stock board.. I'm just having fun. lol

[JackCross]

Yeah, a lot of the personal cr*p makes no sense. It's like when people were calling for bac0n to be killed (or at least making threats in that fashion). It makes no sense to get that attached or upset. Plus there are more creative ways to deal with trolls, personal bashing can *easily* be avoided.  Also, arrest? That's hilarious. Even if the cops showed up, then what? Hurt feelz on

[AlphaJ]

one more question. Nasdaq global thinks bitf is top notch...why don't you? Or maybe your smarter the nasdaq global.....?

[Crisis2007]

Hey AlphaJ I like your word .." your smarter the nasdaq global.....?"...LOL GLTA

[AlphaJ]

what funnier is 45s response. He think he made a point. He got the last laugh. Lol. I answered his question and it went right over his head. Awell, cant teach stupid. We can just sit here and watch bitf explode over the next year while those hive guys scratch their heads.

[bullFire]

Very concerning for BITF investors. They can't even answer when facts are provided. Dumbest investors in crypto.