Replies to post #10547 on Coeptis Therapeutics Inc (COEP)

[davidsan]

No cashflow, except negative. Just Bitcoin flow.

The cashflow is negative, on buying mining equipment, the S9 Antimers, which have already begun to be outdated. Estimates by another company are another year or so and they won't be able to compete with the newer, faster, more robust, and yes, more expensive, mining equipment that began hitting the market the last 3-4 months. The only inflow is bitcoin flow, very little at this point. And the only cashflow is out the door, expense related, to buy ever more miners.

So what we have here is growing, but to date very low bitcoin acquisition, on already becoming outdated equipment, which will be much more expensive to replace, and no revenue generation. And unless they raise capital, such as thru more dilution, they'll have to sell bitcoins in order to continue buying equipment. The lack of real cashflow is why they plan on at some point sharing the bitcoin acquisition in the form of a dividend, I believe they said 20% of the coin they mine. That's a good thing, yes, but this isn't the be all and end all some think it is. And after taking off 20% for the dividend, they'll have to sell some portion of the remaining 80% to continue to buy more equipment, otherwise no growth other than value of bitcoin they own and haven't had to sell to raise capital. And at some point soon they'll have to start buying the latest, much more expensive mining equipment, even as over this next year their existing S9 Antminers are increasingly unable to compete and begin to be less and less productive each day.

IMHO this company will have to raise a significant amount of capital to jump ahead and buy a large number of the latest miners, just to give them a shot at the market over the next year, and they will then need to add more and more, more rapidly. This path NDYN is on is ultimately going to be a capital intensive one if they hope to continue to grow and not just keep their heads above water but excel in the market. This is why so many previous miners with big dreams have been falling by the wayside, and increasingly only the big boys will remain.

So though this may generate some nice bitcoin assets for the owners, those who started and run the business, at least for a time, it is not at all clear how much will ultimately filter thru to the common shareholder. A good story, sure, but the details will be a challenge. And most "good stories" never amount to much, so many really no more than lipstick on a pig, and as is rife in the penny stock world, that's what most down here are.

Just a dose of reality. Food for thought. GLTA.