Abstract

The efficiency of using stocks and Exchange Traded Funds (ETFs) in conjunction to create a spread while simultaneously implementing a hedging mechanism to minimize loss and maximize gains. This can be accomplished by using the Exchange Traded Funds and stock such as $NUGT, $DUST and $GOLD. By using ETFs and Stocks as a hedge there is the unique advantage of being able to maintain an unrealized gain or loss in either direction, and not expire worthless in the long term as what happens in options trading. To effectively be validated as an unbiased strategy, the results must be the same in a bullish or bearish scenario.

Keywords: ETFs, stocks, spread, hedge, paper loss, bullish, bearish

Introduction

Upon analysis of current instruments available in trading options, ETFs and stocks, specific strategies can be adopted when trading the gold commodity. By using ETFs and stocks as a pair or just leveraged or unleveraged ETFs which follow the underlying asset, there is the unique advantage of being able to maintain a longer running trading strategy and adjust the unrealized gain or loss according to the risk appetite and spread. The trading strategy allows for an upside in gains while curbing losses, independent of the fund manager’s bias in both a bullish and bearish scenario. The important initial consideration is the desired spread size and stop-loss, which upon definition, would determine the variables for creating the correct weighted position with the financial instruments selected and effectively create the spread and risk management strategy.

___________________________

Written by Michael Anton for Midas Invest.

Currencies of any type must have a reason for existence besides the store of value, and that is a form of usage.

We are at a point in time where high net worth buyers are taking an interest in NFTs and by bidding on them, create demand on the Ethereum network. The minting of new ERC-20 tokens which have embedded into their contracts burn addresses and NFT’s which use them as both a currency and tool to power network contracts has created a highly deflationary product.

The math couldn’t be more predictable: as the value and quantity of NFTs grow, the difficulty of mining Ethereum does as well with proof-of-work (PoW) migrating over to proof-of-stake (PoS) which is currently at 32 Ether to become a validator.

No other crypto currency has the usage adoption factor as high as Ethereum which at the current burn rate may become deflationary over time as the difficulty of mining increases with every fork implemented and the minting of new tokens, smart contracts and NFTs continue grow at an astounding rate and valuation.

Based on this assessment, we should see a multiplication many times over of the current spot price, as long as the market variables and demand remain consistent over the next 60 months.

This article was written by Michael Anton for Midas Invest 

Super Micro Computer Inc. ($SMCI) has gained a reputation for its innovative server solutions, pioneering liquid cooling technology, and recent strategic collaborations with top tech players. However, recent challenges in regulatory compliance have raised concerns among investors. Specifically, the resignation of Ernst & Young (EY), $SMCI’s former accounting firm, has intensified scrutiny around the company’s financial reporting practices and internal controls, emphasizing the need for $SMCI to demonstrate a solid commitment to transparency and responsible financial management.

Ernst & Young’s Resignation and Compliance Concerns

The resignation of EY as $SMCI’s auditor has highlighted areas of concern within the company’s accounting and compliance practices. This development is particularly significant as EY cited “disagreement over accounting policies” as one of the primary reasons for its departure, which raised investor alarms over the state of $SMCI’s financial governance. In today’s investment landscape, transparency in accounting is not only critical to regulatory compliance but also serves as a foundation of investor trust.

$SMCI’s management has since taken steps to address these issues, but the company faces the challenge of proving to investors that effective and lasting changes are underway. To regain confidence, $SMCI needs to implement stronger internal accounting controls, clearly communicate those changes, and show measurable progress in its financial reporting procedures. This could involve restructuring their compliance team, adopting industry-standard financial reporting protocols, and perhaps most importantly, adopting a culture of accountability across all levels of the organization.

For $SMCI, simply meeting baseline regulatory requirements will not be enough to reassure the market. What is needed is a genuine commitment to best practices in financial transparency. Addressing these compliance concerns openly and proactively can help $SMCI re-establish trust with its shareholders, sending a signal that it values integrity in its financial disclosures.

Leveraging Advanced Liquid Cooling Technology in Collaboration with Tesla

Despite these compliance hurdles, $SMCI remains a leader in high-performance computing technology. This reputation was further strengthened through its recent collaboration with Tesla on a massive GPU installation project that showcased $SMCI’s technical capabilities and innovative cooling solutions. The collaboration, which began several years ago, has positioned $SMCI as a key partner in Tesla’s drive for sustainable and efficient technology infrastructure.

One of the most impressive aspects of this project was the installation of 100,000 GPUs in record time. Such a high-density deployment presents substantial cooling challenges, which $SMCI addressed through its proprietary liquid cooling technology. This liquid cooling system enables effective thermal management without relying on traditional, less efficient air-cooling systems. The technology, specifically designed to maximize performance in high-density computing environments, facilitated Tesla’s objectives by:

1. Reducing Operational Heat: The Direct Liquid Cooling (DLC) system used in this deployment channels cooling directly to heat-intensive components like GPUs, maintaining optimal performance even under heavy computational loads.
2. Optimizing Space and Energy: $SMCI’s high-density server racks allowed for maximum computing power within a minimal physical footprint, reducing both space and energy costs.
3. Supporting Tesla’s AI Initiatives: By providing a robust infrastructure for Tesla’s GPU deployment, $SMCI enabled the scalability and performance required for AI-driven applications.

This collaboration is a testament to $SMCI’s commitment to advancing energy-efficient and high-performance computing solutions. While compliance issues need addressing, the company’s technological strengths and partnerships in the high-growth areas of artificial intelligence and sustainable infrastructure demonstrate that $SMCI is still a competitive and valuable player in the tech industry.

Outlook and Path Forward

In the coming months, $SMCI will face the dual challenge of rebuilding investor trust while continuing to innovate in its core technology offerings. Addressing the compliance issues transparently and effectively will be essential to restoring credibility and allowing $SMCI to focus on growth. Given the success of projects like the Tesla GPU installation, $SMCI’s potential for continued expansion in high-performance computing and sustainable tech remains promising.

For investors, the next earnings report will be a key opportunity to evaluate $SMCI’s progress, both in terms of financial controls and its business strategy. If the company can demonstrate meaningful changes in its accounting practices alongside steady technological advancements, it will be well-positioned to regain and even strengthen investor confidence.

——————————————————————————————————————————————————————————

Summary

Accounting Concerns: $SMCI faces scrutiny after auditor Ernst & Young resigned, citing disagreements over accounting policies, raising concerns about financial transparency and compliance.

Need for Transparency: $SMCI must strengthen internal controls, adopt industry-standard practices, and build a culture of accountability to restore investor trust.

Collaboration with Tesla: $SMCI demonstrated its liquid cooling technology, supporting Tesla’s AI initiatives by efficiently managing high-density GPU installations.

Investor Outlook: Investors await $SMCI’s next earnings report for updates on financial governance and growth in sustainable, high-performance tech.