Hut 8 Corp HUT

Cashflow concerns

[crocks31]

From their cash burn rate i have Hut running out of cash in 5 weeks.  With their HODL strategy that leaves only two options; 1) Raise capital on the market which is unlikely in the current environment 2) They issue shares which they have approval to issue up to $200 milion worth of shares.

How do people see this playing out?  My guess is they will be forced to issue 50,000,000 shares in the next couple of weeks at a price in the range of $1.50- 1.75.  That will obviously be dilutive to everyone and in theory the share price would drop by that 25% of the additional shares issued.

I'm surprised i haven't seen anyone posting about this yet?  Am i missing something here?

[Edcando]

I don't know if you're missing anything or not but I do have one observation. Since they alrwady have approval for that raise nothing says they'd have to  sell 50 mil shares at this price (or any price all at once). So assuming your math ia correct on how long they have cash for (they do have other revs us so I'm only just assuming your math is right) they still don't need

[SevenM]

Hut8 mgmt have a proven-track record of financial prudence with their ATMs.  I have no concerns with unnecessary dilution.  :) Good luck everyone! Seven.