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.

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