Week 24: June 13 Investment moves
- US Markets as of noon (EST)
- No option trades on June 13.
- My son did a trade yesterday (June 12)
- Cipher Mining Explained
US market as of noon (EST)
No option trades on June 13.
I did not do any trades today and I don't think I will do any trades later on.
My son did a trade yesterday (June 12)
My son gets an allowance of $15 a month. The rule in our home was you get what your age is per month with a $15 cap (or $180 a year). My son is now 16 years old and has been saving money since he was 5 or 6. I think it was around 2020 when my kids started investing.
Here is a slide from 2021 showing the dividend for each child:
Since then, kid #2 has believed in trying to "juice" some extra returns by selling at the highs and buying back in at a lower price. I explained to him the chance of missing out if you never got back in.
Here are the last few trades he has:
Cipher Mining Explained
Since I did not trade today let's look at one of my positions #Bitcoin:
For the next part, you can get the public news releases from:
https://investors.ciphermining.com/news-events/press-releases?page=0
I created a simple chart of what Cipher Mining is doing in the last 6 months:
As you can see in 2023, they had less than 1000 Bitcoins on the balance sheet. April was the Bitcoin halving and you can see the drop. As the global hashrate increases, your share of mining a Bitcoin drops. This is why it is very expensive to run a mining business (hence not "easy" for people to compete).
Let's assume a $40K Bitcoin value, Cipher holding when from $31 million to $85 million or a net growth of 50 million dollars! The second thing we know is bitcoin is near $70K today. The question is how many businesses added $50 million to their balance sheet in six months?
As long as the miner can fund their operations and purchase new ASIC miners using the existing bitcoin on hand, they should keep going. This assumes that miners will be profitable in running a mining rig/business. For now, this is the reason why I still own miners in my portfolio.
Have a profitable day.