Tony G's Investment into Blockmate is a Game Changer

We have written extensively about Blockmate Ventures Inc. (MATE.V)(MATEF) over the last month. Today readers were massively rewarded as the stock nearly doubled to $0.285 in Canada with no end to this run in sight. If you are new to this story, read our previous report that goes into details about the fundamentals, near-term positive catalysts and speculative upside of MATE and Hivello:

https://value-trades.blogspot.com/2024/12/blockmate-unambiguously-undervalued-crypto-stock.html

The stock is no longer trading below $0.20 so it's no longer trading below the value of its stake in Hivello. However, the news today justifies it. New investors to the story can look at a $0.285 stock price and say they are paying just above the value of the Hivello stake in exchange for any new blue sky potential that this deal will bring, within or outside of Hivello. 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 1017 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. 

In our previous report, we left some room for share dilution along the way to our eventual $5.00 target, assuming 200 million shares outstanding for warrant exercises and further financings. A financing came sooner than we expected, but in a very desirable way. Instead of the usual broker private placements where paper is blown out to the market once the four month hold expires, Blockmate received a strategic investment from Antanas Guoga, aka Tony G. It's a $1.4 million investment in the form of 14 million shares, with 10 million of those shares in a one year lockup. This investment comes with warrants at a strike price of $0.50. Which would be another $7 million into the company's bank upon exercise. This really shores up MATE's books for the foreseeable future. In addition to that, the $0.50 strike price foretells where Tony G thinks this stock will go. To be able to exercise 14 million warrants profitably, the stock has to be significantly above $0.50 and heavily traded. 

Tony G is the Chairman and major shareholder of Sol Strategies Inc. (CYFRF)(HODL.CN), where he has led the stock to a 20x winner since September thanks to it becoming the "Microstrategy of Solana". When you understand the business model of HODL, his interest in Hivello makes sense. Hivello could be seen as the "Sol Strategies of DePIN", with an ability to aggregate multiple DePIN nodes under one platform. The added benefit being that users of Hivello can make money alongside investors in the stock. While HODL attracts the interest of crypto and finance bros who understand the business strategy, Hivello is unique in that it has potential to become mainstream like YouTube content creation. It's a potential source of passive income for regular people, because regular people are the ones who own the nodes aka the decentralized physical infrastructure. There is also the simple rocket ship explanation which is - Tony G might not be done buying. He easily has enough resources to do significant open market buying should he choose to do so. Burn shorts burn (somehow MATE has accumulated over a million shares in short interest). 

That leads us into our next point. The news release stated:

"Blockmate’s primary asset, its controlling stake in Hivello Holdings Ltd, has been able to source capital independently since December 2023, so this new capital will assist in launching Blockmate’s subsequent companies."

MATE doesn't need the cash as Hivello finds its own capital. MATE plans to use the cash to invest in other opportunities. What will those be under Tony G's guidance? A similar business model to Sol's? This is why the idea that MATE is now trading above the NAV of its holding in Hivello is not at all a missed opportunity. MATE will transition from essentially a one business entity into a holding company with multiple operations. It's not just about Hivello anymore. We look forward to what MATE has in store for shareholders given this game-changing strategic investment. Our $0.50 target looks achievable any day now and the $5.00 target went from long-term pipedream to something with a substantially greater than 0% chance to be achieved within a year. 

A final point - all this talk and we didn't even mention Hivello's partnership with Swarm announced today. The management team running Hivello is 100% dead serious in making this project a success.

Disclosure: We are long MATE.V