We have written extensively about Blockmate Ventures Inc. (MATE.V)(MATEF) over the last month. Today's post is meant to be a short blog. Review our previous write ups if you're not already familiar with the opportunity. We are not worried about the drop seen today, in fact we consider it a buying opportunity for those who don't yet have a position. This trading is reminiscent to trading on QNC on December 12 before it took off to the next level. If you like our picks you can follow this blog by clicking the follow button on the top of the left hand panel. We have 1020 followers on here as well as 120 followers on our Canadian blog. You can also follow us on X @StockTradePicks which has over 5,000 followers.
14 million shares is an oddly specific number for Tony G to buy. Why not 10 million? Why not 20 million? It makes a lot more sense when you consider Canada's rules on insider buying and reporting in the context of MATE's share count. 14 million shares represents 11% of the company's 125 million shares outstanding. This is just above the reporting threshold of 10% ownership before one is considered an insider. He could have bought 10 million shares and avoided any reporting requirement. He clearly wanted to be considered an insider with reporting duties. Likely driven by a goal of transparency and knowing that reporting of his ownership stake would be seen as a bullish sign by traders.
At the same time, the 11% stake also affords him the opportunity to buy on the open market, as the ownership limit before someone must be considered a control person is 20%. Should he be interested in doing so, he can easily buy up any supply overhang from flippers and day traders and send the stock rocketing. Reporting of any open market buys would further increase buying pressure, as people realize he is willing to buy at higher levels as well as at $0.10. We can't say for certain what he is thinking or how large of a position he wants. Or if he will buy any on the open market. While we are optimistic that such a scenario can happen, we think investors should consider it a bonus to the investment thesis, rather than a central theme to it. MATE is cheap here with or without Tony G. His involvement means that the level at which MATE should no longer be considered cheap or a strong buy has substantially increased.
While his investment has provided an immediate boost to the stock, the business will also be positively impacted. As an investor, he now becomes an ambassador for Hivello. People who respect what he has done with Sol Strategies will now look at Hivello's business model with greater interest and trust. The more people who try out and earn money on Hivello, the more profitable it will be. Also, the more likely it will reach and surpass a critical mass to becoming viral. Tony G is akin to a celebrity endorsement in the crypto space. But instead of paying for the celebrity endorsement like so many brands do, Tony G is paying MATE money for shares in the company. That's the best type of endorsement any business can get. It's looking more and more likely in these very early stages that Hivello will be a success.
In the meantime, look for an official SEDI filing of his 14 million shares to be the next positive catalyst to drive the stock upwards.
Disclosure: We are long MATE.V
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