DMC - To Bit Coin or not to Bit Coin

DMC – As the first company on CAPX to deal exclusively in bit coin mining, the Digital Mining Company (DMC) is a trailblazer. I am not going to go in depth about explaining bit coins; I believe that the IPO’s Chairman Letter did a good job. But I am going to discuss why this company may be worth your investment. First and foremost it has the potential, and this is possibly the largest drawing point, to bring fresh capital into the CAPX stock market. Even if the amount is small L$10,000 to L$15,000 a month, the dividends will mean new L$. That can then be used to invest in other companies. New L$s that are not just switching hands in SL, but coming from RL into SL. Just like its title you have to treat this company like a RL mining company, lots of risks but with lots of upside. All who read the IPO know the risks. Bit coin collapse, costs get to high, no returns on a month, and hardware/software issues. And the upside, fresh capital in the CAPX system, new innovative company, small public float, and chance to strike it big with bonus finds. But for this company to be successful as a stock, what does this really mean. Companies that are worth investing in will post a dividend, unless sufficient reason for why not is given. For this company to be moderately successful all it would have to do it turn an L$7,500 a month dividend. That would be equal to .01L$ a share. If that is all the company was able to achieve, by market standards the IPO price is undervalued by 20% to 30% for a new company, and if that is all it can achieve every month for the next year it would be undervalued by over 80%. The beauty of it is the company can seemingly do better. With expected gross income of L$35,000 minus out L$18,000 for electricity (based on an L$70 increase) and L$5,000 for other expenses. The company would net L$12,000 and pay a dividend of 0.016. Just for comparison, the good investors of FED currently hold the companies 0.01 div a month value at 2.5 L$ a share. If this company stock price was on par with FED it would be worth L$ 4 a share. All that being said, this company will experience diminishing returns, that is the nature of bit coins, but as the public becomes more comfortable with bit coins, the price would seemingly go up. Question really is will demand out pace supply or vice versa, that is where you decided if this company is worth your L$. If you think bit coins are the next big internet “thing” or could be that “thing” then this company is for you. IF you think they are a fad and a waste of time, this company could make a great short term stock play and that is all.