[Tangent:] The Last Gasps, Of Wildly-Unprofitable Bitcoin Miners... Trying To Get To The Public '34 Act Registered Markets: "Frankenstein" Edition!

Well, that was. . . slick -- slick and... oddly prescient -- that Halloween '22 is just around the corner. . . and I know I am going as a SPAC / Boris Karlov Merger Deal!

Here this afternoon, Rhodium pulled its long shelved IPO plan out of mothballs.

Though to be fair, back in January 2022, it showed a potential $1.7 billion valuation. Today's potential for a SPAC deal is. . . (wait for it!) at under one-tenth that valuation.

Thus, as I say -- this is. . . HILARIOUS. The "big(ger) con" couldn't be sold back in January, so B. Riley pulled the IPO.

Now, at a more realistic valuation (and the realization that the company is dead stick without vast new capital), it seeks to be able (eventually) to sell registered public equity the way Marathon and Riot do.

Without it -- it is DOA. The capital needs in this vertical are. . . staggering, for the very small revenues they potentially generate. [Even so, apparently BitNile Holdings owns about 6.5 per cent of the SPAC -- so it will do well, if the reverse merger goes through -- and it gets a like percentage of Rhodium's mining interests.]

So -- I wish the boys at Rhodium good luck, as B. Riley will crucify the company to make commissions.

And, as it is. . . Riot Blockchain has issued over 155 million shares, at a gross intake of over $1.8 billion -- in new equity, to only generate net operating losses -- losses of around $22 million, last year -- on revenue of around $220 million that year. [And paid the Head Guy $20 million.]

But just so far this year, it has had to write off the vast bulk of its April 2021 $650 million purchase of Whinstone, and take huge haircuts on the supposed "revenue" from mining bitcoin, due to cratering spot prices. And that's just so far, this year.

Object lesson, here: This Frankensteined Rhodium deal is. . . a stinker.

"UUUUoouuper... Duper!"

-- Peter Boyle (1974)

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