HIVE Digital Technologies Ltd V.HIVE

Hive Blockchain Announces US$100.0 Million At The Market Fin

[AwareInvestor]

Hive Blockchain this evening announced that it is conducting a US$100 million at the market financing. The financing is being conducted as a result of the liquidity the company has seen as of late within its equity, with the firm reporting that it was the most liquid stock on the TSX Venture in 2020.

https://thedeepdive.ca/hive-blockchain-announces-us100-0-million-at-the-market-financing/

[farmboy123]

Could someone explain this for me. I'm not familiar with the financial lingo. Is Hive diluting in order to do this?

[risky]

looks like dilution to the tune of arond 30 million shares depending on share price....call it a bonus ..

[farmboy123]

Thanks risky. I don't really like the dilution but it seems part of Frank's strategy to stay debt free. I wonder who or what Hive is acquiring now?

[canadiangunner1]

Yes a pretty big dilution and one that is done as mgmt sees fit and unannounced from time to time. Not very appealing if someone is a current shareholder.

[bullFire]

It's actually smart. Raise capital. Better for the balance sheet. Who's knows maybe they'll acquire another company and up their Bitcoin production. These moves will always end up benefiting investors longer term. If you understand how to run a company something like this is a must. Smart to benefit from current share price and market cap. Happy with the decision. 

[Totallynotcory]

Agreed. This type of raise is common. People seem to get the impression that the 100 million goes into thin air. The reality is, with BTC/ETH prices booming, the ROI on this investment is a no brainer assuming it goes into acquisitions or building out infrastructure. I'd prefer this raise, versus the the deal a month ago where they're paying 8% interest. 

[bazbuz]

If BTC is expected to eventually hit $400,000 plus, and ETH to the moon, (with the $100,000,000 available)  Frank should consider buying up the Coins Hive produces, and use the same BTC business plan as Michael Saylor... He is promoting his Bitcoin plan to Big Money on Feb,4 and 5 ...Hive would get a double bang for the buck...Does this sound like too simple a concept.It  worked for