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Bullboard - Stock Discussion Forum Hut 8 Corp HUT

Alternate Symbol(s):  T.HUT

Hut 8 Corp. is a data mining company. The Company is a vertically integrated operator of large-scale energy infrastructure and bitcoin miner. The Company acquires, designs, builds, manages, and operates data centers that power compute-intensive workloads, such as bitcoin mining, high performance computing, and artificial intelligence (AI). The Company operates through four business segments... see more

NDAQ:HUT - Post Discussion

Hut 8 Corp > Answer to why Hut 8 borrowed to buy the Miners...
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Post by Wellness on Jan 25, 2021 3:29pm

Answer to why Hut 8 borrowed to buy the Miners...

Here is the answer to the question about why Hut 8 borrowed money recently to buy more Miners, directly from Head of Hut 8 IR:
“So, the reason is there is no available supply directly from the leading manufacturers than can deliver within the first half of Q1. Because Foundry had pre-purchased this premium equipment last year, it was our absolute best / most cost-effective option to get top of the line Micro BT equipment we want with delivery asap (over the next 6 months) to allow us to maximize the ROI available for in production equipment while the supply constraints prevent the hashrate from moving up as quickly as it would normally be expected to…. The term of the loan is only 12 months to minimize the interest expense to the maximum extent possible.”

Seems like a very good move to me. Next earnings early-mid March for December 31 Q4/2020 Year-End should be terrific and will only go up from there with this additional 425 PH/s, over 40% increase and largest Bitcoin holdings, all the price appreciation is since the last quarterly Q3 results. 
Comment by rwfresh on Jan 25, 2021 3:35pm
The assumption here is the dollars used to buy the equipment will devalue against bitcoin during the loan term. If they didn't believe that then they are in the wrong business and investors are buying the wrong stock. It's the equivalent of buying BTC on your credit card. Which honestly for a mining company stock is exactly what I am looking for. I want to take a big risk and be able to ...more