Massive Crypto Mining Company RESPONDED to Me

hey everyone me kevin here in this video

i'm going to talk about crypto mining

companies and how hud 8 responded to me

which is super exciting because we have

a little bit more insight into what the

heck is happening in the world of crypto

mining the first thing that we have to

address is crypto mining difficulty then

we're going to address a mistake that

was made earlier some information and a

response that we got from hud 8 and then

we're going to talk about investing in

crypto companies so the first thing that

we need to know uh is in mining network

difficulty has gone up for bitcoin over

the past few months and that's

particularly because when china banned

uh crypto mining we saw the difficulty

for mining crypto plummet this is by

design if a bunch of miners go offline

then it becomes easier to mine bitcoin

and that quickly recovered as other

miners either entered the business or

relocated to america or whatever uh and

and so it makes sense that crypto mining

companies would mine less crypto going

into and through november because it's

more difficult than earlier

but how much of a decline or

stabilization we see compared to growth

is very very important especially when

you're evaluating cryptocurrency mining

companies so we're going to talk about

that right after i talk about a mistake

that was made earlier earlier i

mistakenly reported

that

hud 8 the crypto mining company from

canada mined 305 bitcoin in september

and 343 bitcoin in october that mistake

was made because of this particular

source which fortunately i took a

screenshot of and you'll see that this

is actually the

fool.com if you look at the actually i

don't think you can see it there we go

all the way right there at the bottom

see that full dot ca so it's the motley

fool canada unfortunately they reported

this information and when they reported

this

and indicated that cryptocurrency

production fell by 23

look who picked it up in the google

search results you could see seeking

alpha also picked it up and

unfortunately this information was wrong

i made the mistake of accidentally

sharing it so i made a mistake this was

not the correct production information

from hud 8. instead the correct

information is that hud 8 mined 264

bitcoin in september in october they

didn't release an individual monthly

report they didn't make it clear they

released it as sort of a quarterly

report but if we subtract based on the

amount of crypto or bitcoin they're now

hodling compared to before we think they

mined somewhere around 250 bitcoin which

makes sense because they probably had a

similar amount of hardware and the

difficulty went up so we saw bitcoin's

mind go from 264 to 250. well now

they're reporting that they mined

265 bitcoin and we saw that crypto

mining difficulty obviously went up but

they also brought a bunch of new

machines online so this made me a little

bit concerned this morning that wait a

minute 265 divided by 250 is a month

over month six percent growth in bitcoin

but we just added a crap ton of new

machines in fact if we look at the

update which i'll go ahead and pull up

the update the press release that hud 8

released we'll find out exactly how much

new machinery was added today uh or

added in this last quarter take a look

at this

so

this right here is the september

production update this just gives you

the 264 bitcoin mind this is the

november update now one of the things

that concerned me about this is in the

last update that we got in october huday

mentioned that they were installing

about 2400 new nvidia cmps mining

processing units basically uh and

that was supposed to be completed

today see or by today see this is the

press release from today which says the

company has deployed the nvidia cmps to

mine the ethereum network and they

received their payouts in bitcoin so i

thought it was weird that all of a

sudden we got all of this new high

performance nvidia technology

yeah difficulty went up maybe 10 15

but we only grew by six percent when all

of a sudden we should have had a whole

lot of more machinery online and this is

fortunately where we got an answer from

hud 8 which makes me feel a whole lot

better this is very very good news

because i tweeted the executives over at

hot 8 and i tweeted hud-8 and take a

look at this hud 8 responds right here

i because i asked them my question to

them was did medicine hat require down

time for the installation of the new

nvidia

cmps love you all and hud 8 mining

response power utility mandated downtime

in october

okay

that explains why we didn't see like an

explosive growth which in my opinion hud

8 was down 10 today because investors

were kind of looking at this on the

surface and they're kind of like oh how

come we didn't get explosive growth we

just invested in all this new equipment

where's the explosive growth really just

six percent more bitcoin mine that's not

great well they had mandated downtime in

october

they did have increased capacity with

their new products but they did also

remove

less efficient mining equipment so at

the same time as they completed their uh

production at the same time as they

brought their new devices in

from sort of having received the

shipment to actually hooking them up

they had downtime and transition time

involved and so this to me is a very

fair explanation as to why we didn't see

a lot bigger of a jump in mining

production now we do know that

difficulty is probably going to continue

going up over the next few months and

that's okay

but hopefully in the next month we'll

see a big boost in the production over

at hudit mining why is this important

well if you are investing in a

cryptocurrency mining company it is

extremely important that the mining

company that you choose would choose

whether it's clean spark or hive which

by the way hive also huddles ethereum or

it's any of the other mining companies

it is very very important to always

remember that you are paying a premium

over the cryptocurrency that they huddle

for the mining process you're paying a

premium for the equipment that they

chose the equipment they have the

location where it's being mined you're

paying a premium for the expertise of

the individuals operating the company

to make sure the servers are operating

that they're in the best way possible to

make sure that they are negotiating as

well as possible with the local energy

department to make sure they get the

best rates for as much as possible and

they get to have as much uptime as

possible you're investing in the hope

that they're going to remain or become

as green as possible in the future all

of these things are things that you're

investing in so really when you're

investing into a minor

like hud 8 you're you're paying about

six well you're probably paying about

one dollar for bitcoin and probably

somewhere around six dollars for the

actual uh technology or the actual

miners and all of that let's do the

quick math so hud 8 just gave us a press

release of their new hotel balance they

have a huddle balance of 5 242 times the

current price of bitcoin which is

falling a little bit right now current

price of bitcoin uh we'll go with 56 200

that puts us around

294.6 million

dollars and that's usd and now we're

going to go with hud 8 stock and hud 8

right now has a market cap of 2.23

billion canadian dollars so we're going

to convert that to usd

so we're going to go 2.23 cad to usd

that's about 1.74

1.74 billion dollars

divided by the 2946

uh 100 million that we have for uh for

bitcoin means right now you're paying

5.9 times their bitcoin value

for the company so you're paying one

dollar for the bitcoin they hold and

about four point nine dollars for

the

uh for the company itself for every

about five dollars and ninety cents

you're putting into this company so you

put five dollars and ninety cents in

four dollars and ninety cents is going

to the hardware to these chips to the to

the governance of the company to

renewables to whatever right to their

negotiating ability with the energy

department and a dollar is actually

going into btc value now the benefit of

investing in some of the mining

companies is they tend to fluctuate more

so you get bigger swings up and down in

price which is nice for trading and you

get to use derivatives but i'm a big

supporter of crypto mining companies i

almost decided to start my own crypto

mining company because i absolutely love

it i decided against it i'm investing in

another project instead but i wanted to

give you this update and also clarify

mistake that was made thank you so much

for watching this video and we'll see

you in the next one thanks goodbye