I'm too ignorant about NILE to even try to say why their stock is down 90%. I don't even know what their motives are when it comes to their own stock. Are they cashing in on the expense of their own shareholders? I don't know. I don't think a falling bitcoin bodes well to their business model. Especially for miners who incur greater and greater costs with each coin "mined," which was the model to keep bitcoin finite in the first place. Which to me is a huge Ponzi scam, but that's just my opinion influenced by Buffet and Munger and other things. I wish I got in on that at 25 cents 15 years ago!
Why do shorts short anything? Why did they short GME and AMC? I would say because they don't have the crystal ball our tech analasys friend thought that he had. I don't know why. If shares were lent out, I think it was a valid assumption as he noted that it would be shorts that they were lent to. Who else would borrow shares? The why is not so much important as to what factually is occuring.
I think facts here are that our float is incredibly small. It can be defined different ways, of course. And value is so subjective. I think tangible book is a good case. Every downtick is a stronger bull case and vice versa. And if shorts get caught in a situation where demand exceeds the supply of a float, and it's a massive bull run, they could be in the inverse psychological situation of bulls going the other directioin. With a small float, their covering would be fuel to the fire! It would be fun to speculate where the top could be in such a case. I may start jettisoning out 200 shares at a time. I don't have many shares left, sadly.
What I love is that I'm so tiny and I'm surrounded by behemoth of a captor that needs LOTS of liquidity to profit. So, they are either here for long term gains or short terms gains. Either way, I am not a threat to them. But they are pure saviors in my eyes. They brought stability, and the liquidity they need makes them a perfect host to ride on the coattails of should the stock explode. And with a low float, as I noted, shorts are playing with dynamite in my opinion. Whatever anyone is thinking at any given time is pure speculation. Those are just teh facts as I see them, and hence I'm experiencing mega stockholm syndrome here! I love our captors! Thank you for kidnapping me! :) LOL
BTW, I would be lending my shares out short too. My broker allows it, but not with a margin account. I preferred margin over that setup. Eric said there is a way around that, but I haven't talked to my broker about it yet. Interest rates are usually not that high. Those are exorbitant rates, which tells me between the lines (this was not discussed anywhere) that demand for shares to short must be very high and the supply low in relation. Just my thought, which is a good thing as I see it. They are literally in a tight situation -- hence, can really be squeezed here. And with every additional share bought by BitNile, they are feeling the squeeze all the more. The threat of a bull rally could be like facing a tsunami to them IFF that were to happen. The sky is their floor. So, I like my situation here.
