The hottest Finance Substack posts right now

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Miner Weekly: Why Lending Rates Have Been Declining

Miner Weekly • 0 implied HN points • 24 Sep 22
💰 Finance Regulation News
  1. Compute North filing for Chapter 11 bankruptcy protection is impacting the cryptocurrency mining industry as it provides co-location services for major mining companies.
  2. Maple Finance set up a $300 million credit fund offering interest rates between 15% to 20% for bitcoin mining companies, reflecting the competitive landscape in miner financing.
  3. The reduction in interest rates for bitcoin mining loans is attributed to increasing competition, varied rates offered to borrowers, and specific financial health requirements put in place by lenders.

Alert: Central Bank of Nigeria Circular OFI/DOA/CON/ACT/004/155

RegAlert • 0 implied HN points • 29 Jun 22
💰 Finance Regulation Cybersecurity Compliance Banking Nigeria
  1. The Central Bank of Nigeria issued a circular requiring other financial institutions in Nigeria to enhance their cybersecurity defenses and adhere to the provided Risk-Based Cybersecurity Framework and Guidelines by January 1, 2023.
  2. This circular emphasizes the importance of strengthening cyber defenses in financial institutions to mitigate risks and ensure a more secure environment against cyber threats.
  3. Compliance with the Risk-Based Cybersecurity Framework and Guidelines is crucial for OFIs in Nigeria to safeguard their systems and data from cyber vulnerabilities.

Alert: Central Bank of Nigeria Circular PSM/DIR/CON/INM/016/118

RegAlert • 0 implied HN points • 04 Jul 22
💰 Finance Regulations Banking Payments
  1. The Central Bank of Nigeria is requesting financial institutions to review and implement specific QR code presentment options in payments.
  2. Financial institutions can choose between merchant-presented or consumer-presented QR code options for payments.
  3. The Central Bank of Nigeria will continue to monitor industry developments and provide additional guidance as needed.

Alert: Central Bank of Nigeria Circular FPR/DIR/PUB/CIR/001/058

RegAlert • 0 implied HN points • 17 Aug 22
💰 Finance Banking
  1. The Central Bank of Nigeria has adjusted the interest rate on all its intervention facilities to 9% per annum, effective July 20, 2022. For existing intervention facilities granted before July 20, 2022, the new rate will be implemented from September 1, 2022.
  2. The Circular FPR/DIR/PUB/CIR/001/058 provides detailed information on the adjustment of interest rates on all CBN interventions.
  3. Stay informed about changes in Central Bank of Nigeria policies and regulations by following Regulatory Alerts on Substack.

Alert: Central Bank of Nigeria Circular FMD/DIR/PUB/CIR/001/006

RegAlert • 0 implied HN points • 07 Oct 22
💰 Finance Banking Regulations
  1. Authorized dealers should not access the discount window on certain dates related to auctions and transactions
  2. Successful bidders at government securities auctions cannot use the discount window on settlement dates
  3. Participants with successful foreign exchange bids are also restricted from accessing the discount window during auctions and settlement dates
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Miner Weekly: A Tale of Two Mining Hodlers

Miner Weekly • 0 implied HN points • 26 Nov 22
💰 Finance Regulation Finance Corporate Hardware & Infrastructure
  1. Marathon and Hut8 mining firms held onto all their mined bitcoins despite the bearish market, possibly planning to tap into their BTC reserves as cash reserves run low
  2. Mara and Hut8 incurred around $20M in cash expenses each in Q3; Mara borrowed $50M against BTC to cover costs for the next year, facing margin call risks if BTC price dips
  3. Regulations like novel laws by NY governor and town moratoriums are impacting crypto mining; financial challenges faced by mining companies like Core Scientific and legal cases add complexity to the industry

My Snap Story: Valuing Snap ahead of it's IPO!

Musings on Markets • 0 implied HN points • 17 Feb 17
💰 Finance Investing Market Analysis Tech Stocks Valuation Methods
  1. Snap focuses on online advertising, which means most of its money will come from ads rather than selling products. They aim to keep users engaged to boost ad revenue.
  2. The main audience for Snap is younger users who like visual content. They plan to continue tailoring their app to be attractive for this demographic.
  3. Snap wants users to spend more time on their platform instead of just growing their user numbers. They believe that keeping users engaged is more valuable than simply having a lot of users.

January 2017 Data Update 4: Country Risk Update

Musings on Markets • 0 implied HN points • 24 Jan 17
💰 Finance Investment Risk Analysis Market Trends Global Economics Corporate Finance
  1. Where a company operates affects its risk more than where it is incorporated. So a US company can face risks of emerging markets just like local companies.
  2. Not all country risks are the same; some can be managed through diversification in investing. Some risks are country-specific, while others affect all global investors equally.
  3. Understanding country risks helps in corporate finance decisions and in accurate company valuation. This is crucial for investors and companies looking to invest in different countries.

Miner Weekly: Has bitcoin price bottomed?

Miner Weekly • 0 implied HN points • 10 Dec 22
💰 Finance Regulation Corporate News Hardware & Infrastructure Feature
  1. Bitcoin's difficulty change may indicate the bottom price, as seen from a historical perspective in past market events.
  2. The average block interval may change based on hash rate, potentially affecting bitcoin's difficulty and hashprice.
  3. Regulation news and financial challenges continue to impact the bitcoin mining industry, with lawmakers focusing on environmental impact and companies facing financial struggles.

Alert: Central Bank of Nigeria Circular FPR/DIR/PUB/CIR/001/059

RegAlert • 0 implied HN points • 12 Oct 22
💰 Finance Regulation Banking
  1. The Central Bank of Nigeria has issued a circular requesting feedback on draft guidelines for the regulation of representative offices of foreign banks operating in Nigeria. Stakeholders, especially foreign banks, have been urged to review the document and provide comments within three weeks.
  2. The circular is titled 'Guidelines for the Regulation of Representative Offices of Foreign Banks in Nigeria - Exposure Draft' and was posted on October 12, 2022.
  3. Stakeholders can download the circular and access the draft guidelines for regulatory review from the provided link on the Central Bank of Nigeria's website.

Firesale: $6.6m Bitmain coupons and $158m miner loans

Miner Weekly • 0 implied HN points • 28 Jan 23
💰 Finance Regulation Financial News Corporate News Hardware and Infrastructure Feature
  1. Core Scientific is looking to sell $6.6m worth of Bitmain coupons at a significant discount, targeting potential buyers before they expire.
  2. BlockFi has started bidding to sell $158m in loans backed by 68,000 bitcoin ASIC miners, with potential loan collateral values raising questions.
  3. The industry faces regulatory challenges, financial activities like acquisitions, investments in Bitcoin mining, and corporate news across various firms.

January 2017 Data Update 3: Cracking the Currency Code

Musings on Markets • 0 implied HN points • 20 Jan 17
💰 Finance Valuation Currency Investment Risk management Capital Markets Economic Indicators
  1. Understanding currency is really important for evaluating companies. You can't just ignore how different currencies affect cash flows and the value of assets.
  2. You should be able to value a company in any currency without changing its actual worth. The key is to keep your estimates consistent across cash flows and risk rates.
  3. When estimating future exchange rates, a simple approach is to consider how inflation rates differ between currencies. It helps you make better valuations without overcomplicating things.

NYDIG set to take over another 5.5 EH/s in bitcoin ASIC collateral

Miner Weekly • 0 implied HN points • 04 Feb 23
💰 Finance Bitcoin Mining Corporate News Financial News Hardware & Infrastructure Feature
  1. NYDIG is acquiring a significant amount of bitcoin mining equipment from companies like Greenidge and Core Scientific in exchange for debt relief.
  2. Genimous, a Chinese firm, reveals impairment of around $9.4 million in BTC assets, showcasing a unique instance of a mainland Chinese company engaging in bitcoin mining despite China's regulations.
  3. Financial news in the cryptocurrency space includes Giga Energy raising $10 million, Crypto Miner Pow.re raising $9.2 million, and Bitcoin Miner TeraWulf restructuring debt.

Alert: Central Bank of Nigeria Circular FPR/DIR/GEN/CIR/001/061

RegAlert • 0 implied HN points • 23 Nov 22
💰 Finance Regulations Banking
  1. The circular provides guidelines for individuals and entities seeking to operate as banks or financial institutions in Nigeria, focusing on Anti-Money Laundering and Combatting the Financing of Terrorism.
  2. It outlines the minimum requirements for licensing and should be followed along with relevant laws, regulations, and licensing criteria.
  3. The guidelines are applicable to both new and pending applications, and they are immediately effective upon publication.

Alert: Central Bank of Nigeria Circular CCD-06122022

RegAlert • 0 implied HN points • 06 Dec 22
💰 Finance Regulatory
  1. Individuals in Nigeria can withdraw up to N100,000 per week and N20,000 per day via ATM, while corporate organizations have a higher withdrawal limit.
  2. Third party cheques exceeding N50,000 will not be accepted for payment over the counter.
  3. Financial institutions in Nigeria must adhere to the specified cash withdrawal limits outlined by the Central Bank of Nigeria Circular CCD-06122022.

Myth 5.2: As g-> r...To Infinity and Beyond!

Musings on Markets • 0 implied HN points • 30 Nov 16
💰 Finance Valuation Investment Economics Market Trends Risk management
  1. When using the perpetual growth model in valuations, the growth rate should never exceed the overall economy's growth rate. This keeps your calculations realistic.
  2. It's best to use the risk-free rate as a cap for growth because it takes inflation into account and provides a solid basis for your numbers.
  3. Valuing companies with overly optimistic growth rates can lead to big mistakes. Keeping growth rates in check helps maintain value accuracy.

Alert: Central Bank of Nigeria Circular FPR/DIR/PUB/CIR/001/062

RegAlert • 0 implied HN points • 14 Dec 22
💰 Finance Regulations Sanctions Banking
  1. Financial institutions in Nigeria must follow guidelines on targeted financial sanctions related to proliferation financing set by the Central Bank of Nigeria.
  2. These institutions are required to implement the guidelines and submit quarterly returns on actions taken regarding targeted financial sanctions.
  3. The submissions to the Director of the Financial Policy and Regulation Department must be made within 10 days after the end of each quarter.

When the pieces add up to too much: Micro Dreams and Macro Delusions

Musings on Markets • 0 implied HN points • 15 Oct 13
💰 Finance Market Analysis Investment strategy Valuation Methods Corporate Finance Economic Trends
  1. Social media companies might be overvalued as a whole. While individual companies can have solid growth, the total market might not support such high valuations.
  2. There will be a few winners among these companies in the future. Investors should focus on identifying which companies will succeed, as some can thrive even in a crowded market.
  3. Easy entry into the market can lead to higher growth but also lower profits. This means that just because a market is growing doesn't mean companies will make big money.

Major mining pubcos. have come out of crypto winter, at least for now

Miner Weekly • 0 implied HN points • 13 May 23
💰 Finance Mining Earnings Regulation News Corporate News
  1. Major mining public companies have shown improved financial performance after the crypto winter of 2022.
  2. Mining companies have managed to reduce the all-in cost of mining by 10-20%, contributing to increased profitability.
  3. Operational efficiency remains crucial for mining companies as they aim to generate positive earnings, especially as they approach the next bitcoin halving.

Valuation of the week 1: A Tesla Test

Musings on Markets • 0 implied HN points • 05 Sep 13
💰 Finance Valuation Investing Market Analysis Equity Research Risk Assessment
  1. Tesla's current market value seems too high given its low revenue and operating loss. Many investors wonder if it can continue to grow without making profits soon.
  2. For Tesla to succeed, it needs to increase its revenues and eventually turn a profit. This requires a lot of investment in production and technology.
  3. The risks for Tesla are significant, especially due to market competition and its financial status as a young company. It might have a tough road ahead despite its high market price.

Thoughts on intrinsic value

Musings on Markets • 0 implied HN points • 08 Jun 11
💰 Finance Valuation Investments Assets Market Analysis Economic Theory Valuation Investing Assets Market Analysis Economic Theory
  1. Intrinsic value is based on an asset's fundamentals like cash flows and risk. It's an estimate of what something is truly worth, independent of market prices.
  2. Only assets expected to generate cash flows have intrinsic values. Things like stocks and bonds have intrinsic values, while collectibles like art don’t really have one.
  3. Many experts focus on pricing based on how similar assets have sold before, rather than true value. This difference is important when valuing businesses or investments.

The Little Book of Valuation

Musings on Markets • 0 implied HN points • 03 May 11
💰 Finance Valuation Investment Investing Valuation Stocks Market Analysis Financial Education Stock Market Financial Analysis Trading Strategies
  1. Valuation can seem complicated, but it's actually quite simple. The goal is to empower investors to learn how to value different types of companies themselves.
  2. Understanding the key factors that drive a company's value is crucial. Identifying these value drivers helps investors create better investment strategies.
  3. The book is designed to be accessible and easy to read, focusing on practical tools rather than overwhelming details. It aims to make valuation understandable for all investors.

Alternatives to the CAPM: Part 3: Connecting cost of debt to cost of equity

Musings on Markets • 0 implied HN points • 30 Apr 11
💰 Finance Capital Markets Investment Theory Risk management Corporate Finance Investment Risk management Capital Markets Financial Analysis Corporate Finance
  1. It's easier to figure out the cost of debt because you can see the interest rate when borrowing. This makes it a more straightforward number to use when looking at a company's finances.
  2. You can estimate the cost of equity by comparing it to the cost of debt and factoring in the volatility of both stocks and bonds. If the cost of debt is 8%, the cost of equity might be higher, like 12%, if stocks are riskier.
  3. This method works best for big companies with significant debt. However, it has limits because equity risk and bond risk are different, so care is needed in using this approach.

Catastrophe and consequences for value

Musings on Markets • 0 implied HN points • 22 Mar 11
💰 Finance Market Analysis Risk management Investment strategy Economic Impact Asset Valuation
  1. Natural disasters can change how we think about risk over long periods of time. We often base our expectations on past events, which might not be enough for rare but powerful situations.
  2. Experts often seem surprised by big events, even though they are supposed to know what to expect. This makes us question what we really mean by 'expertise' when big surprises keep happening.
  3. After a disaster, companies and investors face big challenges in managing risk. It's harder to prepare for unpredictable events, and these events can seriously affect the value of businesses and the market.

Equity financing is on the rise

Miner Weekly • 0 implied HN points • 22 May 23
💰 Finance Bitcoin Mining
  1. Equity financing is increasing among both private and public bitcoin mining operations, with companies raising significant amounts through equity and reducing debt.
  2. Quarterly filings of major bitcoin mining operations show a rise in proceeds from equity financing activities and a decrease in cash flows from debt financing activities, indicating a shift towards equity funding.
  3. There is a trend of private operations taking loans in addition to equity raises, while public miners are also exploring debt financing options to fuel further expansion.

Alert: Central Bank of Nigeria Circular FPR/DIR/PUB/LTR/001/002

RegAlert • 0 implied HN points • 23 Dec 22
💰 Finance Regulatory Alerts Financial Institutions
  1. Financial institutions must follow updated lists of countries under increased monitoring and high-risk jurisdictions by the Financial Action Task Force, including the Democratic Republic of Congo and Myanmar.
  2. FATF recommends a risk-based approach when engaging with these countries, which financial institutions are expected to implement in their dealings with entities from these jurisdictions.
  3. A central bank circular in Nigeria, FPR/DIR/PUB/LTR/001/002, provides additional information and guidelines related to these financial regulations.

Mining gross margin is (slowly) improving

Miner Weekly • 0 implied HN points • 30 May 23
💰 Finance Bitcoin Mining Regulation News Corporate News Feature
  1. Mining gross margin is slowly improving due to bitcoin's hashprice rebound, declining energy costs, and improved efficiency.
  2. Most public mining operations were able to increase gross margin in Q1, with Greenidge Generation showing a declining trend in energy consumption costs.
  3. To maintain a positive gross margin, public mining operations need bitcoin's price to remain above $28K and keep production costs below $15K per BTC mined.

Riot's Team Sells $16m Worth of Shares

Miner Weekly • 0 implied HN points • 05 Jun 23
💰 Finance Regulation Finance Hardware & Infrastructure Corporate Feature
  1. Senior management at Riot Platforms has been selling off shares, totaling $16m, with most selling activities happening recently.
  2. Multiple team members of a project selling their stakes around the same time can be an intriguing situation, sparking curiosity about the reasons behind it.
  3. Riot's senior management and board directors have collectively reduced their stakes in the company, with some filing notices for further stock sales.

Alert: Central Bank of Nigeria Circular OFI/DOA/CON/OFI/001/304

RegAlert • 0 implied HN points • 09 Jan 23
💰 Finance Regulations Investments Risk management
  1. Financial institutions in Nigeria's OFIs are directed to divest from funds managed by uninsured entities, aiming to reduce high credit and liquidity risks
  2. Existing placements in uninsured entities must be liquidated within 90 days to safeguard depositors' funds
  3. This regulation is implemented by the Central Bank of Nigeria to protect the financial interests of the depositors

Alert: Central Bank of Nigeria Circular FPR/DIR/PUB/CIR/01/064

RegAlert • 0 implied HN points • 13 Jan 23
💰 Finance Regulation Compliance Banking
  1. Financial institutions must identify and disclose beneficial owners of legal persons and arrangements to comply with anti-money laundering and counter-terrorism financing laws.
  2. The Central Bank of Nigeria has issued guidance on ultimate beneficial ownership to help financial institutions implement these measures.
  3. All financial institutions supervised by the Central Bank are required to adhere to the guidance on ultimate beneficial ownership.

Alert: Central Bank of Nigeria Circular BSD/DIR/PUB/LAB/15/022

RegAlert • 0 implied HN points • 21 Jan 23
💰 Finance Regulation
  1. The Central Bank of Nigeria has launched a cash swap program for citizens in underserved areas to exchange old Naira notes for redesigned ones. Individuals can exchange a maximum of N10,000 starting January 23, 2023.
  2. Super Agents and Deposit Money Banks (DMBs) will be involved in the cash swap program, with the goal of promoting financial inclusion by allowing agents to create wallets or accounts for customers without banks.
  3. Agents participating in the program can charge cash-out fees but are not allowed to charge additional commissions for providing this service.

Core lays out bankruptcy exit plan

Miner Weekly • 0 implied HN points • 26 Jun 23
💰 Finance Mining Regulation Hardware Corporate Feature
  1. Core Scientific plans to emerge from bankruptcy by the end of September, focusing on boosting its market share in bitcoin mining.
  2. The company aims to expand operations in Texas, purchase new miners, and transition to a profit-sharing model for hosting.
  3. Core Scientific intends to continue selling all mined bitcoin soon after production, with plans to invest in new equipment for increased efficiency.

Alert: Central Bank of Nigeria Circular FPR/DIR/PUB/CIR/001/069

RegAlert • 0 implied HN points • 07 Feb 23
💰 Finance Regulations Compliance Banking
  1. Financial institutions must screen their customer database for any association with individuals linked to ISIL or Al-Qaida.
  2. Financial institutions need to update their sanctions screening lists according to recent changes in the United Nations Security Council Consolidated Lists.
  3. Immediate compliance is required from all financial institutions with the new regulations.

Alert: Central Bank of Nigeria Circular TED/FEM/PUB/FPC/001/001

RegAlert • 0 implied HN points • 15 Feb 23
💰 Finance Regulations Banking Economy
  1. The Pre-Shipment Inspection Agents (PIAs) Portal has been deployed on the Stakeholder Verification Portal (SVP). PCIs/CCIs will be electronically generated on the SVP from March 1st, 2023.
  2. Authorized Dealers must ensure that the processing of PCIs/CCIs by PIAs is done electronically on the SVP at https://syp.tradesystem.gov.ng.
  3. This circular is issued by the Central Bank of Nigeria notifying Pre-Shipment Inspection Agents (PIAs), Monitoring and Evaluation Agents (MEAs), Authorized Dealers, Nigerian Customs Service (NCS), Exporters, and the General Public about the deployment of the PIA Portal on the SVP.

An efficiency race among miners

Miner Weekly • 0 implied HN points • 05 Jul 23
💰 Finance Mining Bitcoin Regulation Financial News Corporate News
  1. Bitcoin miners are engaging in an efficiency race, upgrading equipment and optimizing operations in preparation for the upcoming halving in 2024.
  2. Companies like Riot and CleanSpark are making significant investments in mining equipment to improve efficiency and stay competitive in the market.
  3. The decrease in Bitcoin's hashprice since 2022 has created uncertainties around the next halving, putting pressure on miners to enhance efficiency and lower costs.

Alert: Central Bank of Nigeria Circular FPR/DIR/PUB/CIR/001/070

RegAlert • 0 implied HN points • 24 Feb 23
💰 Finance Regulation Banking Management
  1. The Central Bank of Nigeria has implemented changes to the tenure rules for Executive Management and Non-Executive Directors in Deposit Money Banks, limiting the maximum tenure to 10 years for certain roles.
  2. For an Executive Director who transitions to Deputy Managing Director, there is a maximum cumulative tenure of 12 years. Across the banking industry, there is a cap at 20 years for Executive Directors, Deputy Managing Directors, Managing Directors, and Non-Executive Directors.
  3. This Circular FPR/DIR/PUB/CIR/001/070 outlines the specific details and guidelines related to the tenure requirements established by the Central Bank of Nigeria for banking industry executives.

Passive Value investing: Screening for bargains

Musings on Markets • 0 implied HN points • 12 Jun 12
💰 Finance Investing Stock Market Value investing Financial Analysis Portfolio Management
  1. Value investing helps you find cheap stocks by using specific criteria. You can look for things like low price-to-earnings ratios and high dividend yields to spot bargains.
  2. While screening for cheap stocks can be effective, it takes time and patience to see good returns. Often, the best results come over longer periods rather than right away.
  3. Using a structured approach is key to successful investing. Combine different screens and analyses to get a clearer picture of the stock's potential for growth and risk.