Post
Topic
Board Securities
Re: ASICMINER: Entering the Future of ASIC Mining by Inventing It
by
Voodah
on 31/07/2013, 14:49:34 UTC
have I missed something crucial or why is the AM price imploding on dividend day?

Another explanation USD/BTC rate. AM share price in USD remains relatively stable.


This is it guys.

When BTC dropped to 68, AM acted as hedge and went all the way up to +5.

We are now recovering on the BTC/USD side and AM is correcting back down.

Ehh, I still question the correlation to USD/BTC.  You are buying a share in btc, to earn a profit in btc... div is paid in btc.  Only fiat comes in with fixed costs like power, making the chips, that stuff, which is a fraction of what we take in.  Unless someone can chart it for me and show me a good correlation, I do NOT think fiat prices have a huge effect on AM prices.  I do not even consider fiat in any way when thinking if AM is a good buy or if I should be selling.  I might if operating costs were ever a larger portion of our take.

Doesn't really matter if you yourself view it that way or not. I also do not assess the outcome of my investments this way, if I put btc I look at btc.

But the market certainly thinks differently. The correlation is there, easy to see. And thinking about it, honestly, I think it is not the result of people thinking as you say in fiat, but rather a natural response to the fact that there was/is no natural hedging mechanism for a btc investment.

AM, the best performing stock, has somehow become that mechanism (or at least it did so during the last wave down) for a fraction of the market who were in clear demand of such a thing.