HIVE Blockchain Technologies Ltd (HIVE)

[hobowilly]

Please explain how investors would get an 80% haircut.

Numbers used are for example only and are not real but represent a real life situation
In November 2021 Joe Investor bought 1,000 shares of $HIVE @ $5.00 The value of his holdings at the time of purchase were:
1,000 shares x $5.00 pps = $5,000
Company's Market Cap was $1 billion

Closing PPS on the eve of 1:5 REVERSE SPLIT = $0.9032
Joe's pre R/S holdings are now valued at
1,000 shares x $0.9032 pps = $903.20 a "paper" loss of $4.0968/82% +/-
Company's Market Cap is $180,000,000.00 +/- (share structure held constant)

May 20, 2022, $HIVE executes 1:5 REVERSE SPLIT
Joe's post R/S holdings are now valued
200 shares x $4.516 pps = $903.20 which is exactly equal to pre 1:5 REVERSE SPLIT value
Company's Market Cap is $180,000,000.00 +/- which is exactly equal to pre 1:5 REVERSE SPLIT Market Cap

Everything appears, and is, equal - except for "shares held" which is 80% (haircut) less post 1:5 R/S - but it is not what it seems because at 09:30:01 when the market opens and begins trading under post 1:5 R/S conditions all equalities are off and a new cycle of trading begins under a new set of numbers. Pre 1:5 R/S values are history and a faint memory. A new investor mindset takes over which includes a new investor strategy. However, market conditions have not changed. Bitcoin and Crypto overall continue in a Bear Market and there is more selling of Bitcoin Miner stocks than there is buying. $HIVE 's 1:5 R/S will have absolutely no effect on the Crypto Market which is in "Risk Off" mode, as is The NAZ and markets in general.

But as "Talkin' Investing" aptly pointed out in the video you recommended Shorts will be in "Short Heaven" post 1:5 R/S trying to drive the pps back under $1 and under current general market conditions this should not be hard to do. - And no, I don't believe in shorting stocks and wish it would be outlawed -.

Pre 1:5 R/S the target for Shorts was $0.20.

I imagine there are many $HVE investors that don't keep up-to-date that are going to see $HIVE up $0.15/3.63% and think WOW!!!!!! Then see the pps at $4.516 and say WTF?!?!?!?!?!?!? Then realize what happened overnight and prepare to sell when markets open. However, I do not see the reverse scenario occurring. Who will check to see the pps of $HIVE and see $4.516 and say HOLY SNYKIES I gotta get in while it's so cheap!!!!!! (How does it make sense to buy a $4.516 Bitcoin Miner when there are Miners selling at much cheaper prices?)

This was a disastrous and selfish move by The Little Scumbag POS. $HIVE could have tightened up the share structure without hurting $HIVE investors anymore than they currently are. All the faithful and loyal investors that belived in the Lyin' Scammin' Scumbag got royally screwed and Frankie couldn't care less.

And the cherry on top is that Preferred Shares have increased in value, like magic, overnight!!!!

Finally it should be noted that $HIVE announced to shareholders on May 9, 2022 their intentions for a 1:5 REVERSE SPLIT to be executed on May 20, 2022. 11 days. How long did they sit on this since the day they decided to do this? Quite often a R/S is voted on by shareholders. But that's not the way Frankie The Ponzi Scheming Scumbag operates. He simply says that after hearing from numerous shareholders at numerous conferences he decided this is what shareholders wanted.

Really? I don't think the average Joe Investor $HIVE shareholder has the time and financial resources to attend these "numerous conferences" and the shareholders he claims he "heard" from were Hedge Fund Managers and Investment Bankers
attending these conferences on their private corporate expense accounts.

Hope this answers your question