Opinions
Peter Hodson
HIVE Blockchain Technologies
HIVE-X
DON'T BUY
Aug 03, 2018
$0.840
Stock price when the opinion was issued
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Blockchain ETFs? He loves block chain and has about 7% of his portfolio. He likes HIVE as they are a miner of block chain coins. Global integration is just getting going. The technology will benefit from the way global markets will go forward. Imagine if gold could have a tracking system for physical it would do wonders for the control of its movement. He thinks this will happen with block chain technology.
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RISKY
Higher risk. Recently pulled back, as have all speculative names. If you have a high risk tolerance, make it a core position and trade around that. If you have a long time horizon, you can buy and hold. Longer term, he sees increased adoption and higher bitcoin prices. Short term, share prices will move around a lot.
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The upshot: BITF, HUT and HIVE all outperform Bitcoin itself, but suffer more volatility than its base currency. The miners' fortunes are intrinsically tied to the fluctuations of Bitcoin. The main costs for these miners start with the capital costs (an army of supercomputers) and the real estate where they operate day and night. An ongoing cost is electricity, since these machines are energy hogs. ESG investors should investigate how much energy is derived from renewables.
As for where Bitcoin is going, that's like asking where gold is heading. Both are “safe haven” investments which rally when investors feel uncertain. Having this correlation seems to be breaking down as vaccinations are pointing to reopenings around the world and will fuel economic recovery. Will Bitcoin plunge again?
Buyer beware.
WATCH
Fair bit of volatility around crypto and these companies. Focus lately has been on using crypto as a treasury asset. Some of the miners have started to move in the last few weeks, probably due to crypto having a big move off the bottom. If miners can be efficient, their numbers are probably going to ramp up over the next couple of quarters.
He is pretty skeptical on the number of companies that claim to have an advantage in this space. If the value of cryptocurrency goes down, these companies will be at risk. It has a lot of cash and is well known. It is not a real long term strategy in his mind yet.