It’s now been over 3 months since the SGS Monster Raffle Fundraiser and that means this week the first Powerdown of the raised funds concluded and I initiated a new one on the @ssg-community account. Ho Hum, it’s pretty boring administrative type stuff but what it means is that I have a better idea now of how our Cashflow will work for the next 3 months and whether I’ll need to make some adjustments to our Leases.
Image Generated by AI
The New Powerdown is going to yield 809.008 HIVE per week and our current Lease Obligations amount to a total expense of 937.81 HIVE per week. Yes, that’s a shortfall but it was anticipated and that’s why I’ve been squirrelling away some HBD over the last 3 months to draw on for this coming period. We have 206.712 HBD in Savings earning 15% APR which can be again used to plug the cashflow hole, but the question is – "How long will those funds last?" At a HIVE price of around 20 US cents that might be about 8 weeks. We also do have one member contributing liquid HIVE each month so that’ll push it out to 9 weeks...but I’d like to stretch it a bit further...
What I think we are going to need to do (like last time) is to start Tapering Off our leases a bit. Of the Hive Power we lease we have 341,910 Hive Power leased Off-Market via Handshake Deals and another 20,000 Hive Power attained by using 3rd party provider Hive Engine. The latter is the obvious choice to start dropping off first. Precious is currently voting with an Effective HP of 456,643 while our Target HP after the fundraiser was only 450,000. This extra power is due to a couple of members coming on board and/or increasing their existing sponsorship delegations. I can drop off a 5K lease tomorrow and we’ll still be above target. From there we can Taper Off those other Hive Engine Leases gradually and make sure we get into 2025 with the project in reasonable shape.
The other issue that I am considering is that we have these parked funds in HBD earning 15% but if we get a bit of a rally in the HIVE price over the next couple of months then those funds won’t get us as far. I am inclined to bring that HBD back into HIVE to reduce the risk of losing value if we do re-enter a Bull Market. There might be a Liquidity/Swap Pool or something we can use to get a competitive rate of return on these funds while still keeping them fairly liquid and accessible. If anyone has suggestions for a better place to park these funds (in HIVE) over the next couple of months then please reach out.