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Yeah publicly traded bitcoin mining companies are a very new phenomenom, and investors are undiscerning and being taken advantage of. Its fine though, as long
by vmception 4y ago
Yeah publicly traded bitcoin mining companies are a very new phenomenom, and investors are undiscerning and being taken advantage of.
Its fine though, as long as those investors find new investors who only care about revenues. The actual company is a conduit, the revenues still occur but nobody had been asking what happens to the actual money. Lucrative game.
Good article, calls for nothing except FYI to investors.
- dbv1 4y agoHow are the investors being taken advantage of exactly? Investors normally primarily care about profits, that’s not abnormal.
- vmception 4y agoInvestors care about corporate governance and management of the finances as well, corporate profits for share buybacks can accelerate investor profits The article details this basically pointing out that c-suite payouts are high and this is currently being tolerated but maybe by ignorance
- me_again 4y agoI think it's abnormal for executives to get compensation > entire company revenue. I'm sure it happens in other industries from time to time but it seems like a sign of misinvestment to me.
- josu 4y agoAs explained in the article profits are frontloaded, so the company currently looks better than it should.
- FabHK 4y agoYes, and MARA has only been profitable in one quarter so far, if I read things correctly, and the author argues quite convincingly that even those profits are overstated insofar as the depreciations are understated, and things will quite likely turn worse. At the same time, extravagant salaries are being paid. That is how investors are being taken advantage of.