TerraWulf (NAS:WULF) — mrkt cap $838mm; Price $2.51; EV/EBITDA NA
MORE RESEARCH NEEDED. Among the detritus of bitcoin miners there are likely a couple of gold nuggets due to one reason alone- long term access to low cost power. These contracts are in high demand due to AI data centers. Luckily, these bitcoin miners have secured long term power contracts for mining operations and now they are in even higher demand due to the rise of power hungry GPUs. For example, Core Scientific, a bitcoin miner, signed a long term agreement with Core Scientific, for a decade long 3.5 Billion dollar contract, sending share prices up 40%. However, all data center locations are not equal. More works needs to be done to determine the power availability and contract details to find participants in this resurgence.
Genius Sports (NYSE:GENI) — mrkt cap $1.2B; Price $5.24; EV/EBITDA NA
MORE RESEARCH NEEDED. GENI is a sports betting company that procures and distributes sports data to ~500 sportsbooks worldwide. Utilizing its advanced tech stacks, GENI enhances betting solutions for sportsbooks, with its true competitive edge lying in the exclusive in-play rights acquired from major sports leagues like the NFL and Premier League. In-play betting will rapidly gain market share in less mature digital betting markets such as the U.S. As our readers know, we continuously screen for companies in the class of ’21 (IPO’d in ’21) that show promise despite market skepticism –GENI’s stock price has plummeted 75% from its mispriced IPO. However, their latest earnings report indicates positive cash flow for 2024, and fundamentals are steadily improving. To gain more confidence in GENI’s future profit picture, we will take a closer look at rights costs inflation and their M&A strategy.
Cadiz (NAS:CDZI) — mrkt cap $208mm; Price $3.07; EV/EBITDA NA
PASS. Cadiz owns one of the largest contiguous water reservoirs in the USA. It can hold about 30 million acre feet of water -more than Lake Mead- and is located in the Mojave desert. The goal for the last several decades has been to pipe water over to California given the ongoing water crisis. Delivery is expected to start in 2028 barring regulatory hurdles. Although this would be one of the few freshwater sources left to tap, there will be increasing competition from Desalination plants and Potable reuse plants (treated wastewater for consumption). Federal and state regulation will likely continue to hinder pipeline development for Cadiz and we will wait for a better risk reward skew before initiation.