I've taken a decent medium term position in this one today as I feel that Crypto's are now back in vogue due to FB's entry in to it which will further validate them as a form of currency & also (but perhaps more importantly) China's state media saying that they are a "Safe Haven" form of investment.
https://decrypt.co/7624/chinas-stat...ports?utm_source=coinbase&utm_medium=Feed
One can never underestimate the power of 1.3B people & what they can do in an investment market which is relatively small in comparison...
They have approx 3m in Cash (note $1.3m of oppies have been exercised since last 4C).
They have approx 8m in ASX Listed Investments. Being 60% of ASX:ICI which trades at a mkt cap of c. 13m
At current prices - this means that FFG is trading at a ZERO EV
The below 3 points are also attractive and differentiate FFG from the 'pack' by way of BTC exposure in the ASX.
1 - They are listing on the US markets (Pink Market) on 1-July (this week) and that can only be a positive by way of exposure
2 - At the end of May, there were $1.3m in oppies (at 1.1c) exercised. The good part about this is that the non-executive chairman of the company exercised $1.1m of the oppies himself! He is now a 16% shareholder in the business at a time when they are about to dual list & BTC is going crazy.
3 - This is perhaps the most interesting point from a cash flow perspective. On the 14th May they put an update out regarding the current BTC market conditions. In it had the following 2 paragraphs:
The global market prices of cryptocurrencies have experienced a marked increase recently, in particular the bitcoin market price has recovered from its lowest point of USD$3,400 per bitcoin this year to the current market price circa USD$8,000 per bitcoin. This recovery of bitcoin price brings a positive impact to the operating environment for Minerium as Minerium primarily operates computing facilities for blockchain and crypto mining, especially many of its computing facilities are in bitcoin mining operations.
Further to that, with the recovery of bitcoin price, Minerium currently generates approximately USD $1,200 (AUD$ 1,730) worth of bitcoin per day via its bitcoin mining operations. On top of that, Minerium also operates mining facilities for other blockchain networks such as the Mimblewimble Protocol related blockchain networks, which primarily are privacy focussed blockchain technologies.
At the time of the update, BTC was US$8,000 & they said their mining operations were generating US$1200 per day in revenues...
Being crude & using the current US$13,300 price (US$5,300 more than in the update) their mining operation would be generating US6,500 per day (i.e. US1,200 + US5,300) or close to A$10,000 per day in revenues from their bitcoin mining operation.
IMO this is conservative as there would be tremendous leverage to the BTC price given fixed costs are high for mining bitcoin; so the actual number could well be over A10,000 / day in revenues.
In summary - these 3 points lead me to believe that this little company is about to re-rate in a large way on the back of their next Ann to make the market aware of their large increase in revenue on the back of the BTC surge. I am confident they will put something out to market given they put a similar Ann out in May when BTC rose to US8,000
The current EV is c. ZERO at current prices - so IMO the upside is large over the near term.