HIVE Blockchain Technology (CSE: HIVE) has been the market darling and the go-to stock for any speculator to get exposure to the frothy crypto sector. We started to wonder how this company can post double digit gains day after day with tens of millions of shares set to become free-trading this month.
Based on some basic fundamentals, HIVE appears to overvalued as the market cap for the company was recently over $2 Billion and their investments appear to have the ability to produce ~$30 Million in annual revenues.
That is quite a crazy multiple and speaks to the interest in the sector and betting on a group of serially successful capital markets executives.
A few days ago a short report started making the rounds that tried to debunk the whole company. For the most part the stock has held up remarkably well. Have a read for yourself.
Hope you got in around $2 when we first commented on HIVE but be sure to due your own due diligence going forward, as this is sure to be a volatile stock. First earnings aren’t expected until early next year so until then we expect it will trade in step with the direction of bitcoin itself. With the ongoing share locks ups expiring, we see this as more of a trader at this point. The meteoric rise appears to have peaked.
The executive team behind this are led by billionaire Frank Giustra and include young stars, Brian Paes Braga and Tommy Humphreys. They led the resurgence of the mining sector by launching Lithium-X and made a lot of the Canadian capital markets money. Naturally, they have been best positioned for this sector and yet again, are the leaders.
Look these guys up and beg to be in all their deals. Their winners are outsized monsters and theres certainly been a lot of honey in this HIVE so far. Interestingly, on the day that 24M shares came free-trading, it was Tommy Humphreys birthday. Coincidence? We think not! We imagine it was a very happy one at that and rightfully so.