For Crypto related stocks it is impossible to justify the valuations that any of them are already trading at today. We keep seeing Osprey Solana Trust (OSOL) advertised on CNBC. It is currently $13.55 per share vs. its NAV of $6.79 per share meaning the price of Solana would need to double just for investors to break even.
The company Sol Strategies Inc. (CSE: HODL) owns 142,031.09 Solana worth US$30.755 million or CAD$43.79 million. HODL attempts to confuse people by saying, "the total delegated stake to the Company’s validators reached 948,242.86 SOL, valued at CAD$307,839,638." The thing is the "total delegated stake" isn't owned by the company only the 142,031.09 Solana is owned by the company and validators themselves aren't worth anything.
HODL has 148,104,090 shares outstanding and will be issuing another 18,592,000 shares over a period of three years for worthless validators they acquired. This equals a total of 166,696,090 shares outstanding or to be issued and the stock is $2.66 per share. HODL is being valued at CAD$443.412 million. Solana will need to 10X in value for HODL investors to break even. There is no possible scenario where HODL can 10X in value from where it is trading today. There is a 100% chance HODL will decline by 90% and in a bear market it will decline by 99%.
Who on earth is dumb enough to own Osprey Solana Trust (OSOL) or Sol Strategies Inc. (CSE: HODL)?! Seriously???
For One Stop Systems (OSS) it is so easy to justify the stock gaining 5-10X in value. After paying OSS for two years to develop its AI technology for U.S. Army tanks to eliminate blind spots and save lives... you simply need to believe that the U.S. Army will move forward with this program and sign a contract for OSS to begin producing its rugged AI GPU servers for the 13,700 tanks that desperately need this technology. How can OSS not 5-10X in value?
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is meant for informational and educational purposes only and does not provide investment advice.