Replies to post #42250 on Techcom Inc (TCRI)

[Mark954]

This is a great article that you posted. So much so, I decided to post it again. Thanks again for your personal take on things here with TCRI. Never disappointing.
https://www.unlock-bc.com/82100/mena-to-hold-10-percent-of-global-crypto-hash-power/

Mark out

[KingsKnight]

Hey Pots.
This ticker is one of those slow accumulation ones, there just seems to be limited liquidity to gather shares quickly. I guess it takes time to build a strong position on it & then just sit & wait for things to happen. I do have one concern in that the A/S here is in excess on 9B, seemingly leftover from the 2019 1:1000 reverse split on the ticker. This essentially allows them to print shares at will. Having been in APLD, they started with a 9M O/S &500M A/S structure, but now sit 320M O/S & 1B A/S after share registrations. It will be interesting how they maneuver the share structure & issuances here to raise capital. At this time the share structure is great, but expect it to change dramatically over the next year if things begin to play out. The risk certainly is worth it.

Potse Friday, 11/26/21 10:28:12 PM
Re: Mark954 post# 42246 0
Post #
42250
of 42251 Go
TCRI(.09)...couple of items, increased my position......

Quote:
We may or may not? have our normal end of the year sell off. Sounds like, from what Mr. Ali stated, the Phoenix Group is going to be making some moves with this shell right after the first of the year. 2022 should be fun here as Mr. Ali and the Phoenix Group has a lot major stuff going on in the Crypto market.


I've added to my position in the .06-.09 range over the last 5 trading days. This could ultimately prove to be a bad move/timing on my part, but I want to have my core position built well in advance of any announcement/development. I never anticipated being able to get this kind of position built at prices under 10 cents, so I figure I should take advantage of it while the opportunity exists. If selling pressure increases and TRCI pulls back during December, I will probably try to pick up additional shares for possible shorter-term trades.

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)......

Although it may not necessarily reflect what will ultimately be brought into this shell, it may be worth noting the business description of AlphaBit LLC (the entity through which Phoenix purchased TCRI) is of a financial services nature: The principal business of AlphaBit is providing investment advice to regulated cryptoasset funds.

Below is a transcript I made of the segment of Munaf Ali's speech where he talked about the new investment fund that Phoenix established. There is a glitch in the audio so I could not hear a word or two. This segment starts at the 3:00:20 mark of Munaf's speech......

Quote:
Our newly launched [audio glitch] is a unique trading fund, which was oversubscribed on the first day of trading. This fund offers investors experienced in-house analysis and trading capabilities from our trading desk. The aim is to provide consistent and superior monthly returns from trading digital assets while still being able to participate in mining revenues. We are targeting initial monthly returns between 3 and 5 percent. The fund will offer investors regular liquidity events as well as monthly dividend distributions.


Phoenix posted a video on its Instagram account which gives a look at the Phoenix display/booth at the World Digital Mining Summit 2021.....

https://www.instagram.com/p/CWYcSllFVem/

Unlock Blockchain (a media platform that focuses on blockchain in the Middle East) did an short article/interview about Phoenix/Munaf this week. A couple of noteworthy snippets......

Quote:
Phoenix currently has a mining capacity of 450 MW, but with the new installation in the UAE the mining capacity will immediately go up to 1.1 GW, and once they expand to other jurisdictions in the Middle East, Phoenix will have a mining power of 1.8 GW. Munaf Ali adds, “Once we expand our operations across the MENA region, we will have more than 10 percent of the global hash rate coming from the region. This will shape the region. Today we have interest from Kuwait, Bahrain and Saudi Arabia; this is cutting edge and will be an exciting time for the entire MENA region.” The expansion will be met with an additional order of US $2 billion worth of mining rigs in 2022.


Quote:
In the future, Phoenix Technology is seeking to establish a large scale crypto exchange in the region to bring crypto to the fingertips of every person in the Middle East.


https://www.unlock-bc.com/82100/mena-to-hold-10-percent-of-global-crypto-hash-power/

[Mark954]

Here is an excerpt from that Unlock article. Phoenix is already a major force in the mining space and they have big plans of immediate expansion. Seems like their mining business would be the most likely candidate to roll into TCRI. Time will tell certainly but it seems to be coming pretty quickly.

Phoenix currently has a mining capacity of 450 MW, but with the new installation in the UAE the mining capacity will immediately go up to 1.1 GW, and once they expand to other jurisdictions in the Middle East, Phoenix will have a mining power of 1.8 GW. Munaf Ali adds, “Once we expand our operations across the MENA region, we will have more than 10 percent of the global hash rate coming from the region. This will shape the region. Today we have interest from Kuwait, Bahrain and Saudi Arabia; this is cutting edge and will be an exciting time for the entire MENA region.” The expansion will be met with an additional order of US $2 billion worth of mining rigs in 2022.

Mark out

[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