@Chamonyx Appreciate that feedback and fair take there on HIVE & ELVA.
I liked the HIVE earnings report quite a lot even though the price has been pretty beat up for the stock. The management mentioned if they were valued in line with their peers they would be a $20 stock right and I tend to agree with that viewpoint. HIVE got up to 25 exahash on bitcoin mining recently and CIFR was recently at 23.6 exahash. Additionally both companies have about 550 MW of operational capacity. It’s hard for me to see why CIFR would be valued at 7.6B and HIVE at 760M, or literally 10x the market cap.
The electricity that HIVE has down in Paraguay will likely continue for Bitcoin only. It sounds like a very friendly business environment for HIVE as they spent a lot of time detailing this arrangement on the call. Another 100 MW or so is coming online soon in Paraguay which will help get them up to about 35 exa-hash soon. They also mentioned with Brazil on the other side of the border there may be deals coming soon. There’s a river which separates Paraguay and Brazil and there’s abundant hydroelectric power there that probably doesn’t see the same demand that US/Canada does.
On the HPC side, they mentioned their Buzz platform is one of the longer running HPC hosting platforms going back to A100’s (generation before Hopper). They have Hoppers as well but now adding 6,000 Blackwells. The said there’s actually over 10,000 customers for HPC already, as I think they’ve onboarded a lot of small customers. The facility on Toronto has contracts with Bell Canada and plans for the buildout of sovereign Canadian AI. It sounds like the company may be one of the sole providers for the Canadian government on AI. The Sweden location is being upgraded as well to be able to host liquid cooled Blackwells and that sounded on track.
With ELVA they are also a Canadian company that I see as dramatically undervalued compared to its counter parts. You have the next-gen solid state battery makers of AMPX, ENVX, and SES all getting valuations 5-10x above where ELVA is. ELVA is also introducing their solid state battery product soon, so there’s potential to get re-evaluated in that solid state group. The company has been at manufacturing capacity so its good their upstate NY facility is coming online soon which has 3x capacity of their existing facility.
They are reporting earnings on December 10 so we will see what updates they have. 20M was pre-reported as their revenue numbers but I’m also really interested to see where the profitability lands and if they are continuing to gain manufacturing efficiencies and gross margin gains. They’ve begun shipping batteries to robotics companies as well, a nascent field that is expected to grow tremendously over the next couple of years.