Making this its own post as suggested by another user. HIVE has had some great news recently with the completed acquisition of the 50MW green energy centre in NB [1], ETH hitting an ATH of $2,645 USD today despite the Bitcoin sell-off over the weekend, and the prospective NASDAQ listing in the coming months [2]. Provided that the price of ETH doesn't crash below the $600 range, where it was valued at during the last earnings release, the FY 2021 earnings release (projected) on 7/21/21 should be an exciting one [3].
Some things I like:
- HIVE is focused on cryptocurrency mining using clean, renewable energy at all of its locations, which is a big factor for environmentally-conscious investors and institutions. See [4] for Kevin O'Leary's statement of interest exclusively in cleanly-mined cryptocurrencies.
- HIVE recently completed its share investment in DeFi Technologies [5]. I feel this is a bullish indicator for anyone who places value on DeFi and ETH in general, and it shows HIVE's interest in expanding its ETH position.
- HIVE holds a majority of its balance sheet assets in Ethereum and Ethereum Classic [6]. Medium-long term, I am more bullish on the growth of ETH than of BTC, due to its expanded use-cases, so this is something I am happy to see.
Balance Sheet Summary from March 2020
- The CFRA recently issued a report with a "Buy" rating on HIVE at a share price of $4.38, which was also its recommendation at $5.01. Their modelling and recommendations have generally lead me into the green.
- In the share investment agreement with DeFi, HIVE issued 4,000,000 common shares at a declared value of $5/share which gives, at the very least, a positive outlook on the share price in the medium-term.
Some things I don't like:
- HIVE has often been touted as a proxy to Bitcoin and Ethereum. Great, except we say today (4/22/2021) that its share price tanked despite ETH hitting an ATH and BTC remaining relatively stable during the trading day.
- HIVE is the most shorted stock by volume on the TSXV by a very large amount [7]. Only about 17% of its trade volume, though, so don't get any hopes up for a GME-esque squeezer.
- Given the stock's recent retractions, even in the face of great news, I expect the near-term outlook to be poor, and would not be surprised to see the stock dip below $3 before the end of next week. Momentum players beware, or consider taking this opportunity to average down the share cost.
Overall, I'm very bullish on HIVE for the medium-long term, and hope to see some good returns from current prices in about the 7-12 month range. Fundamentals and growth strategy look good, and the upcoming US exchange listing should inject some life into the shares.
Of course, not financial advice. I just like the stock. In for 3,858 shares @ $4.15
Sources:
[1] 50MW green energy acquisition: https://finance.yahoo.com/news/hive-blockchain-completes-acquisition-green-050000418.html
[2] Interview with the CEO, Frank Holmes, noting the in-process NASDAQ/NYSE listing: https://www.youtube.com/watch?v=LbkgJh8_2ng
[3] Summary of past/upcoming HIVE events: https://www.marketscreener.com/quote/stock/HIVE-BLOCKCHAIN-TECHNOLOG-40680906/calendar/
[4] An article about Kevin O'Leary's statement on buying only cleanly-mined crypto: https://www.cnbc.com/2021/04/05/kevin-oleary-says-he-wont-buy-bitcoin-mined-in-china.html#:~:text=Capital%20Connection-,Celebrity%20investor%20Kevin%20O'Leary%20says%20he%20will%20only%20buy,blood%20coin%22%20mined%20in%20China.&text=Bitcoin%20mining%20is%20extremely%20energy,April%202020%2C%20according%20to%20Statista.
[5] Completed share agreement in DeFi Technologies: https://finance.yahoo.com/news/hive-completes-share-investment-defi-050000414.html
[6] HIVE 2020 corporate presentation: https://hiveblockchain.com/investors/presentation/
[7] Largest Canadian short positions: https://shortdata.ca/largest-short-positions/
[8] CFRA report on HIVE: https://solutions.marketscope.com/SP/spreports/StockReport.do?pc=BMI&tracking=BMI&type=CMB&csp=43366H10&auth=154213017063044187147101016212024183097091092138
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