Conference Call Just Ended..... Buy This Stock NowAfter providing an update from CEO Kiguel and CFO, which was rather brief, Two questions were offered.....
My main take away, is that the company is doing exactly as it has said it would do and that results are almost exactly as predicted. 786 bitcoins mined in this period. No surprises at all. That is about as good as it gets.
Since this 2nd quarter report is only for April May and June, it does not take into account some 40 additional blockboxes that are in place and mining bitcoin every day, and will be reported probably in November or so.
A little talk about the 14 nanometer chip that Hut is using which is currently the best chip and that a new chip on the market is performing less than expected. In the future Hut can simply remove current chips and replace them with better chips when that time arrives but it is not currently the best move.
Talk also about the arrangment with BitFury (which owns 44percent of Hut) about the arrangement for new sites, which BitFury is free to develop and Hut has the ability to buy them as a right of first refusal. I think this is a very good thing, giving Hut the chance to "wait and see" before jumping into any major investment.
I like Kiguel's desire to not dilute the shares unnecessarily, who does not like that.
The two huge variables are the price of Bitcoin and the hash rate which Hut has no control over. Recently both the price of bitcoin and the hashrate have been a negative impact on Hut.
Kiguel emphasises that this is a concern but that since the price of mining is going up, smaller miners are being shut out of the market and that the cost of production is most important and that Hut has probably the lowest cost of production in the market currently allowing it to survive in a low priced bitcoin and a high cost of production marketplace.
Hut has mined 2600 bitcoin and currently holds about 2100 bitcoin.
Overall, a great report, it is clear that Hut is doing what it has said it would do, and producing real value for investors, the report in November on 3rd quarter should be spectacular, especially if the price of bitcoin increases, as I think Kiguel expects although he did not say that..... Clearly Hut is holding onto it's bitcoin, since it thinks bitcoin will go up in price significantly and I have heard Kiguel say that they do not intend to start selling till it is at about 15k.....
I guess that is the wager for all of us to consider.....I think it is a good wager.
Hold on, and buy more would be my view.