HIVE Blockchain

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Given your recent report on Bitcoin, I thought this would be a good time to get your opinion on HIVE Blockchain. I have a small % of my holdings in it and its up nicely as Bitcoin surges. While I’m bullish on it, I have n idea when would be a good time to take profits or sell entirely. Appreciate your thoughts on their business.

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Asked on December 2, 2020 10:43 am
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Hive is an interesting one - it is an actually crypto mining company focused on three types of cryptos - Bitcoin, Ethereum and Ethereum Classic . So think of it as a gold miner - but instead of mining gold, they have mining operations that mine cryptos. Locations are in Sweden, Iceland and Canada.

Despite its Bitcoin efforts, more than 75% of operations are centered around Ethereum and Ethereum Classic. So although it is benefiting from a rise in Bitcoin, it is primarily a play on Ethereum. Much like gold producers, they have higher overhead and others costs and are likely to be more volatile than the cryptos themselves.

I am of the firm belief, that it is never a bad time to book profits - a paper profit is only realized until you formally book that gain. I'd approach it the same way as I approach all my investments - which for me includes booking gains after a certain run-up in price, if if I am still bullish - letting the rest ride. If i think the entire investment thesis has played out, then i'd consider selling the lot. Key point here, don't treat it any differently than you would any other stock. Keep to your investment principles, which will vary from investor to investor.

Mat

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Posted by Mathieu Litalien
Answered on December 2, 2020 1:03 pm