Jul. 4 at 1:15 AM
$ASST Price to Sales: an astronomical 151.7x. You are paying
$151 for every
$1 of revenue.
Non-existent profitability. Operating margin is -113%, and they burned
$68.5M in operating cash flow over the last year.
Balance Sheet:
They have
$145.6M in cash against
$13.1M in debt, giving them a current ratio of 11.4x. They have the runway to execute this Bitcoin strategy for now, but the core business is bleeding.
The entire thesis here rests on two things: the price of Bitcoin and management's ability to acquire it without diluting shareholders to death. The recent 1-for-20 reverse split is a massive red flag that they were struggling to maintain listing requirements.
They recently announced daily dividends on a preferred stock class (SATA) yielding 13%, which is an aggressive move to attract capital, but it adds a heavy cash obligation to a company already burning cash.
