Okay folks, so we got to give a violent update on the market and plays, including one stock, one 14 stock that's looking very, very competitive. I want to present my raw research on this company and how it stacks up with competitors. And before we get into all of this, the only thing that I ask of you is that you hit that ravishing like button and also don't forget to subscribe either. Also, a strong shout out to our veterans today.

We love our troops and I know that we have some of you watching, so thank you for your courage, your sacrifice and your service. Okay, update So you had the market rebounding after the inflation-driven sell-off yesterday, with Tech Up today leading the pack. You also about the ship of the Inu, showing some inflows, bitcoin and Ethereum hovering your all-time highs. Eviego has just been on a complete tear after weeks and weeks of good news and positive inflows into Ev charging related stocks.

All of a sudden we got an earnings beat on top of that, which pushed Evie Go within 25 cents of our long-held Zip You Price Target at 20 dollars. That again, we've held through foot in favor. My thought process is similar to what I said earlier this week. Evgo is a great company.

It has a lot of opportunities in the next couple of years to expand, especially because they're the leader in terms of fast charging stations. However, at twenty Dollars, it's already factored in a lot of my bullishness. and that's why my price Target's at twenty dollars and the same forces that inefficiently beat down Evie go to Seven Dollars just a month ago, are now inefficiently pumping it up. Quite simply, a lot of trading is just letting the cycles play out as they may, and taking advantage of the discrepancies between what the true value of the company is and what the market is valuing it at.

Currently, right now, we're on the bullish end of the spectrum, so I say, hey, start locking in profits and tightening risk management. Sure, you always have that opportunity for the retail crowd to go in and say, okay, well now this is a meme stock. Let's rally it up to 25, 30, whatever. But at the end of the day, I like to tie companies that are high conviction too, based on something they can actually earn in a relative time span.

Otherwise, you're just kind of throwing darts at the board, right? A couple months ago, we didn't get too many reactions when we talked about Evie Go because it was pretty much flat lining and losing money, and then all of a sudden the market acknowledges it and everybody wants to talk about it. But the whole thing is one big trap. If you're paying attention to a stock because it's up, you're probably already way way way way too late to the game. Okay, but anyways, the main entree.

So as our High Conviction miners, Mara and Riot have been increasingly pricing in next year and the year after that sales or rather, bitcoin production, I've been trying to find a new matter to diversify some of that risk and find some better deals. Hut is starting to look very, very competitive when comparing valuations to Maura and Riot. Let's start with what I like and what I don't like and we'll do the Mora versus Riot versus Hut side by side comparison in a few minutes. But what I like: Number One Hut stands out because it has a more diversified revenue approach.

They make money. I like this idea of diversifying mining with Ethereum. However, they get rewarded and paid out rather in Bitcoin. So it's kind of like a roundabout way of mining Bitcoin.

It's just a little bit more cost effective from their standpoint for some of the specifics on lending. Because they have so much Bitcoin on their balance sheet, what can they do? They can go and lend it out and get some yield instead of just letting it sit there and appreciate. A recent example is they loaned to a company called Galaxy Digital with an agreement to earn a four percent yield on 1 000 Bitcoins. The point is that what sets this company apart is there's more revenue streams here than we usually see from miners.

Number two. The second thing that I like is country diversification. This company is based in Kanada, or as some other people say, Canada. And with Canada you get a completely different government and completely different local and state relationship.

If there's a world where the U.s decides to shut down crypto miners, well, Hut 8 would skyrocket because the network difficulty would go down dramatically and they'd be like one of the only miners left standing. Since now, China shut down in the U.s is mostly where all the miners are located, so in that way it does create a nice hedge against that risk. Number Three: They have a long track record and they've been in the mining business longer than most with some reported records to date. Number Four: they hold the most bitcoins of any publicly traded company.

They also have more self-mine crypto than any other publicly traded company, including Mara or Riot. Number Five Transparent leadership. This is important. You see a lot of these small, sketchy miners pop up and you can't find out anything about their leadership's past.

Sometimes you look into it and it's like, wait a second. This person doesn't even exist in this situation. You actually have transparent leadership and you have relevant experience with some coming from places like Ibm. Number Six: They have a very, very competitive current hash rate better than Maura and Ryan at this point.

However, over the upcoming years, Maura and Riot are likely going to outshine that quite a lot because of the crypto miners that they've purchased, and when those reach full deployment, it's going to outshine Hut. That said, Hut has a much stronger starting point and in that sense, more proof of concept in the current day Number Seven esg. Friendly focus on the E-port environmental. They're in a locality close to clean energy sources and it's in a very, very cold temperature area in Canada, which is ideal for mining and saves on air conditioning costs.

Servers get overheated very very easily, and if you're located in say, Arizona, well, it's going to overheat and you're going to have to have a very, very good air conditioning unit. But if it's located in somewhere that's cold, guess what? Well, you could just funnel some of that cold air into your units. They also have a geothermal system at their Ontario Center which also makes power cheaper and more efficient. So in a world where you do have stronger and stronger regulations that point to more environmentally friendly crypto miners, I think they do have a little bit of an edge.

There price to sales is one of the best currently. The most recently reported cost to mine is also very, very good. This fluctuates a lot though for miners, but they're looking very competitive, especially because of their Ethereum mining. Roundabout thing.

And the last thing is that similar to Mar and Riot, but not to the same extent, they also have a large increase in deployment that's going to be happening in the next 12 to 18 months, which should show completely by late 2022.. Okay, next the dislike. So I'm expecting Dilution Hut's strategy seems to be to hold everything they produce and keep huddling it and holding it and then lending it out and getting yields on it and using the total bitcoin supply on balance sheet to wield more power in the mining network. But at some point, if you're running a very costly business and you want to dramatically expand your production capacity, well, that's very, very expensive, and this business model doesn't leave a lot of room for cash to do that with.

They've also been relatively slow at diluting, at least compared to other miners in the space, so I would say they're overdue for dilution. It's also true that because they hold so much Bitcoin on their balance sheet, that they may find themselves in a much worse situation in a longer crypto winter. If your main business model is stacking up on bitcoin, well, that's great. But if you have three or four years where Bitcoins down dramatically, like down 60, 70 percent, Well, you just lost 60 or 70 percent of your profits that you had in those prior quarters where you're mining like crazy.

Which would be all fine and dandy because during those periods of down trending, network difficulty goes down as well. So you can mine a lot more Bitcoin and sell them at much, much higher prices. But the longer that takes to realize, the more likely it is that you might have to actually start offloading bitcoin at much lower prices than you'd otherwise want to. The other thing is that I don't really know how to value the Ethereum segment and especially repair services completely.

These make up a small but growing part of the revenue pie, but it's difficult for me to project exactly what say the repair services area is going to look like in 2022 and 2023 when we don't have a lot of details from the company on how it looks now specifically, and how the growth rate in that area is projected to grow. I do like it for diversification purposes, and I think it's great that they offer repair services because that's helpful in repairing their own stuff and in diversifying out. But but it's but it's very difficult for me to put a number on it, so I basically didn't factor it into the data at all. I just will list it as an elevating factor.

In terms of the Ethereum part, it's a little bit easier to value because you're getting paid out in Bitcoin, so if you just add that to the overall Bitcoin mind, it's easy to value. I just don't know exactly how that stacks up in areas where, say, network difficulty diverges quite a lot between Ethereum and Bitcoin. If you're looking into 2022 and 2023, does mining for Bitcoin via Ethereum still save a lot of money or is the difficulty rate screwing up the extra alpha that you're earning there? It's hard to say, but at its core, I mean this is still a Bitcoin miner. So anyways, moving on to a side-by-side comparison.

So my most recent numbers show Maura with 7 000 Bitcoin on her lovely balance sheet, Riot with 3534 on his balance sheet, and Hud 8 with 5050 on its balance sheet. You convert that to Usd using a 65 000 Bitcoin price, and then stack it up to their relative market caps. and Mara has six point five percent of her market cap in Bitcoin. Riot has six percent of his market cap in Bitcoin, and Hunt Eight has an astounding 14 of his market cap in Bitcoin.

Now, hashrate, Hud 8 again leads currently, so you have a little bit less frontal risk going into 2022. But it's most fair to use late 2022 estimates when all of their ordered miners for each of them are fully deployed. or at least estimated to be fully deployed by late 2022, you should see hash rates at 13.3 for Mara, 7.7 for Riot, and then 6.0 for Hut 8, and then how much they are mining with those rates By your end 2023, when they've got a full year of operations well, 20, 000, twelve thousand, and ten thousand, respectively. keep in mind that the other part of production is, well, network difficulty, and I went ahead and set a fairly reasonable network difficulty rate at 200, which I showed how I did that in the equation.

From Mara On that Mara video I did a few weeks back. But the point is that I set them all to equal network difficulty so that we can pull from the data, but in bad situations where it's a lot more competitive, they're all going to be mining less, but they're all going to be dealing with the same competition. So setting them equal is fine for analysis purposes. But anyways, you take their relative current share counts, you assume a Bitcoin year peak 2023 valuation at at least 75 000, which I'd argue is pretty conservative, and you come out to a 2023 production for Mara at 1.5 billion Bitcoin, 900 million for Riot, and then 750 million for a Hud 8.

Hud 8 is trailing the other two, but remember, the other two are trading at much, much higher valuations. So when you actually take the market cap, you're paying per mine dollar the number stack up. Interestingly, For 2022, you currently are paying 5.82 per mind dollar for Mara, 7.30 for Riot, 3.82 for Hud 8, and then in 2023 mind dollars, you're paying 4.36 for Maura, 3.96 for Riot, and then all the way down to 2.67 cents for our lovely Hut 8.. So if you compare it by these valuation metrics at this level of valuation, when comparing Maura and Riot to Hud Eight, well, you're getting a lot more bang for your buck with Hunt Eight in both 2022 and 2023 production numbers, and at the same time you're getting some political diversification.

You're getting some diversification with how they mine aka using Ethereum, and you're getting that extra revenue stream with the repair segment of their operations. And of course, at the same time you have the Bitcoin loaning business, which should build on yields because of their extremely heavy balance sheet approach of holding Bitcoin. But the other thing is, we don't really know how aggressive they're going to be at diluting current shareholders, and that's the one big question mark that I would say is worrisome when it comes down to Hut. But at the same token, what we didn't talk about is the fact that Maura and Riot have factored in 2022 2023 sales for the most part, but we're still not even through 2021.

My take is crypto mining is very, very frothy right now. But come the next crypto crash, come the next crypto winter, or even come the next small crypto. Correction: You're going to start seeing me make a lot of arguments for diversifying into something like Hut. And also if Maura and Riot give really, really good entry prices at a risk versus reward area that makes sense for me, then I'd say yeah, that's looking pretty hot too.

I mean, don't get me wrong, Mars always been a little hot. spicy chicken. I just don't like to overpay for my chickens Anyways, cringe aside that caps off this video. If you have any questions, feel free to reach out to us below or join us on Zip Trader Circle if you'd like to learn how to trade.

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