Applied Blockchain Inc (APLD)

[KingsKnight]

Tiger Money Number Cruncher..
Guess all we can go on is what they provided as a potential framework of what may come.
They went as high as $2k ETH, so double that at current $4K..
What your number crunching Tiger by the Toe say?

Tiger Money Member Level Sunday, 09/05/21 10:52:05 AM
Re: KingsKnight post# 1669
of 1671 Go
Hey brother. I love your insight and color. It is so nice to have constructive conversation on a board. This is one of the few boards u can do it on in Lie Hub. Nothing straight truth from me. Also, so nice not to have pumpers and/or dumpers.

So my cheaper price, that is relative right? I have been long Hut as they are cheap to their competitors and are up and coming. So I look at APLD and see a Hut not on steroids, but a young Hut with more potential. That is, if I was to compare Hut to APLD when Hut was APLD’s age.

So price… a couple of things to think about to make market value relevant. How much does it cost for APLD, Hut or whomever to mine a coin? For example, Hut’s cost to mine Bitcoin is roughly around $3k and they mine nearly 11 Bitcoin a day. So assuming a spread of $46k with Bitcoin around $49-50. Well at $46k x 10 Bitcoin being conservative, that is net revenue of $460k a day puts you conservatively at $160mm a year. That is without growth. As an investor in Hut I have to assume they will dilute to grow as that is only logical. So if they can grow conservatively 25% a year, I can see their market cap at a multiple of what it currently is of about $1.6 billion or about 10x net revenue.

Now answer me this KK, since my head currently hurts as my mighty tigers lost to the dawgs last night in an ole fashioned southern football slug fest, where do you see APLD’s 2022 net revenue? As the guy on the commercial says, 10x it.

Since I don’t know that number, I can’t currently 10x it, but let’s look at their current market cap. I call it a billion using roughly 520mm shares outstanding. If Hut is at 10x or $1.6bn then to be on a level playing field that would mean APLDs 2022 projected net earnings are $100 mm.

So I ask again , what are APLDs forecast for 2022 earnings? I should know that answer, but again, my head is hurting as I drowned my sorrows last night. But if it is greater than $100 million net revenue, APLD is cheap relative to its competitor or vice versa.

Your answer to projected 2022 APLD’s earnings will answer your question as well.