Bitfarms Ltd T.BITF

RE:The Hosting Agreement

[HaulJockey]

kidderpeabody wrote: Bitfarms a few months ago put out a press release claiming to be in the process of buying out a competitor.

All indications are this never happened, but what did happenen was mining equipment destined for another hyped location and millions of dollars was given to this competitor under what was called a "hosting agreement" with 50% of the profits to be given to this competitor.

Someone needs to explain needs why such a deal  was done with shareholders money and assets and 50% of the profits being given to this company.

Bitfarms lost 26 million dollars in the last quarter and given shareholders an accumulated deficit of 315 million. 

https://investor.bitfarms.com/news-events/press-releases/detail/269/bitfarms-enters-into-10000-miner-hosting-agreement-with

I remember reading the story as well. I don't think there's anything wrong with it.
An analogy would be a store with a huge amount of stock with nowhere to put it. They need to utilize the stock but they would have to build out an entire new location to do that. They can't wait, the stock would spoil unless it's put into use now. Kind of like a tomato plant that never gets planted, lots of potencial but stuck in a tiny pot.

They take the stock and loan it out to another company that can provide the space for it to operate. This ups the volume they need to achive current goals going forward. Once the additional buildout is complete more growth will happen then.

Seems legit.