RE:Predictions & thoughts for the week.........Just a few added thoughts for you guys.......for anyone that has a vested interest here in either Riot or SFarms or possibly both.....8)
First....I totally forgot that we have this completely made up & REDiculous holiday today, and if i were Potus, this would be promptly, ruthlessly removed, along with MANY other idiotic & useless things these "super woke" dummy politicians keep dreaming up.
With that said, with the markets being closed today, so we therefore should have ABSOLUTE confirmation.....by tomorrow.... that Riot has NOT added to their interests in SFarms, from the ~14% they currently own.... AND it's highly doubtful they will increase it further, beyond the 15% threshold.
Imo, it seems quite obvious now that Riot mgmt has no desire to "trigger the Poison Pill' and it's most likely they will proceed in one of two manners beyond this point. Which i will outline.....briefly... below. Why do i say or think this? Because like i mentioned before, IF Riot was REALLY serious, really thirsty to OWN Sfarms, they would have & could have EASILY accumulated a boatload last week, during those record breaking volumes, to get them well past 20% .......IF they REALLY want to and were really serious about buying out SFarms. So now it's obvious.....at least to me.....they are either reluctant or unwilling to do so.
So where do we go from here? Imo, the games being played by either side will continue until Riot mgmt sees the light & gives up.......at a certain point. At this juncture, SFarms stock is trading at ~$3US.....well past Riot's so called offer.....and it now seems a moot point & inconsequential to the whole picture. Unless Riot decides to INCREASE this offer......substantially.....by about 30....40% or at least match current market pricing. Which imho....is VERY unlikely! Why? Becasue as i've said before, these M&A's don't make ANYsense in this sector UNLESS the company or assets being acquired....are acquired at a DEEP DISCOUNT. And at the $2.30 offer, that was already NOT the case....and costly to begin with..
If i had to predict what comes next, my guess would be that Riot takes one of two paths. IF they don't have an ally in their pursuit to acquire SFarms, and accumulate shares with them and not trigger the poison Pill. Path number one, force a Special Shareholder meeting by being a controlling entity & activist s/h....and attempt to remove the BOD completely or install some of their folks to turn things in their favor.....and in turn "accept" Riot's offer. Path number 2, they see the light and give up this costly & idiotic pursuit of acquring these subpar assets. Which for all intents & purposes....is MY preferred.....hopefull outcome....8)
As far as what happens to Sfarms, personally i REALLY don't give a rat's behind & dont care! As i'm not a dedicated s/h......never been one and will NEVER be one. But for those that are, and want to guidance, i'll offer these few "wise" words. Contrary to "popular" belief on these forums, SFarms as a Bitcoin miner IS NOT the bomb or better than sliced bread! They are a mediocre miner with mediocre assets and completely over pumped, over promoted and made to be more than they really are. Imo, they are the Macdonalds of the Bitcoin industry, very popular across the board, a darling for investors but contain notthing but empty caalories and bad for your health in the long term.
So .....be VERY careful what you read on these boards, whether it's here on SH or on other investor forums like Yahoo Finance or Ceo.ca, All these forums are filled with MANY dubious folks, numerous pumpers & ignorant investors who will say absolutely anything for their own personal motives, whether true or not. So please practice Caveat Emptor when reading these boards and taking ANY advice....from dubious, questionable sources
A good recent example of this, is all this speculation surrounding "other" possible offers for SFarms. Like Marathon or CleanSpark making "generous" offers to buy Sfarms in the $4,$5 range. This is ludicrous folks! And DO NOT believe these blatant lies. Anyone that really knows this industry....and is extremely knowledgeable.... knows this is just pure BS. The truth is.....there will NOT be any addtional offers for Sfarms beyond what Riot has offered. And its solely because of cost factors and common sense!
That's it for today......will give additional commentary if there are any material developments in this Saga...in the comng days!
GLTA