Techcom Inc (TCRI)

[Potse]

Phoenix 2022 hash rate comparison......

There are still a lot of unknowns here, but the risk/reward profile right now certainly looks worth taking a chance on. I think the performance of TCRI post-acquisition/RM could range anywhere from good to fantastic. Investor reaction might vary depending on exactly what Phoenix asset(s) are placed in the TCRI shell. But no matter what Phoenix asset(s) are brought into this shell, if the post-acquisition/RM share structure looks reasonably good, I will be disappointed if I walk away from this investment with anything less than a 10-bagger on my core position.

The only Phoenix asset that I think would be unlikely to be moved into TCRI is the venture capital fund (Phoenix VC). So that would leave assets like the Phoenix Store (Bitmain distributor), the mining farms (Block One Technology), perhaps Phoenix's own digital mining assets/business, Phoenix's crypto investment/trading financial services, etc., as potential targets.

Obviously, based on how other mining-related stocks (like APLD) have performed, if some or all of the mining farm assets are moved into TCRI, the potential gains here could be huge. If the crypto investment/trading/services division is moved into TCRI, that would be interesting because there is a possibility that Phoenix will develop the first large-scale crypto exchange in the Middle East (3:03:24 mark of Munaf's speech at the World Digital Mining Summit 2021)......

Below is one reason why I have been accumulating a large position in this shell. If (and I stress the word "if") Phoenix were to move all of Block One Technology into this shell, and if (and I stress the word "if") this reverse merger were to be structured "reasonably" well, the potential gains for retail shareholders in this shell could be extremely attractive. As I have mentioned in previous posts, a lot can go very right or very wrong here. But the risk/reward on this shell at this point in time certainly looks extremely interesting.

The way I am looking at the purchases I have made over the 10-cent level: I'm probably risking about a 50-75% downside move, but I think I am positioning myself for what could be a realistic chance at a multi-dollar share price move if those mining farm assets were to be placed in the TCRI shell.

A couple of weeks after the World Digital Mining Summit was held Blockware Solutions released a research report on what 2022 hash rates would look like for some public mining-related companies, based on announced equipment orders. According to their analysis, Phoenix Technology would have a 2022 total hash rate that is higher than companies like MARA, RIOT and XPDI (Core Scientific is going into the XPDI SPAC, at a valuation somewhere around $4-5B).

https://www.blockwaresolutions.com/research-and-publications/how-public-miner-asic-orders-will-affect-hash-price-th-and-bitcoin-adoption