Q: HUT corrected quite a bit over the last few days, especially yesterday. Is there a specific reason for the decline? Is this a good company to play bitcoin if one thinks it will rise over the next year?
5i Research Answer:
J Capital has issued a short report on HUT, which as usual caused panic and quick selling by investors. Allegations are fairly harsh, but of course the report is biased. We can't confirm any of the allegations yet, and are awaiting a response from the company. It is a small company with a history of negative cash flow, so is risky regardless. We would prefer GLXY for sector exposure at this time, or a bitcoin ETF for more-direct exposure to the sector.