Briefly:
As many of you know, HUT8 Mining was the subject of a “short report” by J Capital – a self-professed short selling company.
Amid the sideways chop action in Bitcoin since the ETF approvals, and the downdraft created by this report, I believe HUT is drastically oversold and over-shorted (over 13% of the float now short).
As such I’m opening a small, speculative position in long-dated call options:
HUT 2026-Jan-16 10 Calls @ $3.20
These options are only available on the Nasdaq / US listing, (I didn’t see any long options on the TSX listing).
I may be erring on the side of caution going that far out into the future, but with options I prefer a wide margin for error – these things can take longer than expected.
As for J Capital – this is there schtick – they’ve been sued multiple times for this (to be fair, every short seller gets sued) but I don’t know many who as part of their settlement with a company had to issue a public apology and refrain from publicly commenting on them again.
HUT, for their part, issued a non-response statement, we’ll wait and see if they go any further.
Personally not worried about HUT, this smells like an opportunistic short attack, and I believe when the next upleg resumes, HUT will be a major beneficiary, as they usually are. We’ll expand on that in the next edition.
This is an options play – so only trade with money you can comfortably lose 100% of.
That’s it for now.
–mark
P.S If you missed the news, DollarCollapse has joined the Bombthrower Media stable. The focus will continue to be on gold and precious metals, (but don’t worry, we’ll orange pill more than a few of them 😉
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