u/Just-Solution-8653

Hey Everyone, I am posting this as a continuation from my last post. Below are some of my thoughts since then. https://www.reddit.com/r/EMJX/comments/1u3bszn/comment/os6zawg/?screen_view_count=2

EMJX info pdf referenced throughout this post. https://www.emjx.ai/download

Reasons to stay long-

• Crypto Cycle. I mentioned the 4 year crypto cycle in my previous post. I have already double my investment and will probably pull out my initial investment somewhere between 0.5 and $1.00. It just seems foolish not to let the remaining shares ride at least until we reach the next peak of the crypto cycle. We are currently in a bear market for crypto. So why sell a crypto treasury before the next cycle if you don’t need the money? Outside of EJ and the hype around his predictions, this “fact” is the most certain tailwind after the merger. I say fact because even though this time can always be different; as of right now the cycle is actually really predictable. That is why I consider myself a long-term holder of the shares.
•  Data. I view this as a huge POSSIBLE catalyst. We all know a company that has proprietary data and can either use it for their own operations or sell it for the operations of others are often awarded a premium evaluation. Below are a couple of questions and thoughts I have on this subject.

1.      How easily can the data being used for your algorithms be obtained by others? If other digital asset treasuries can access the same data and create their own algorithms then the premium thesis for this stock is null and void. MSTR, BMNR and others can just say they now will operate as a Gen 2 treasury if that is the case. And if that is the case it is important that EMJX tries to sell their services to other treasuries as soon as possible so that they can become the “leader” for such data. Meaning, that other treasuries will deem it easier to just “lease” the algorithmic keys from EMJX instead of trying to create their own keys. That leads me to #2

2.      Competition or Customers? In this EMJX pdf and in Eric’s interviews it is clear that EJ considers EMJX a replacement to the other treasuries. I mean I suppose it makes sense just to trust management that this is the best route to take.

 

What would cause me to sell prematurely?

• Float? I have already catered my expectations with the possibility of further dilution due to the market cap size and lack of information on how future acquisitions will be funded. That being said, if this company starts issuing un-accretive shares out the wazoo then it is likely I will sell.

 

What still confuses me-

• On the EMJX website the company specifically says they are not "a predictive engine". But, EMJX/event horizon is an AI hedge fund. Even in the pdf linked above, page 11, it says “AI-driven timing and hedging”. Hedge Funds often try to be predictive my timing the market. How are you promoting this as an AI Hedge Fund, but also saying it’s not a predictive engine? That is confusing to me. Maybe I am thinking about it too hard or missing something, but good due diligence requires you to ask these type of questions about your investments. Someone please chime in if you have thoughts on this subject.
• 06/15 Update on the hedge fund thinking. It seems EMJX does not label itself as an AI hedge fund, but Event Horizons does. But isn't EMJX using Event Horizons in it's operations? I also, thought I read that Eric Jackson was keeping control of event horizons? I have to many questions about this right now and need to go though the SEC filings again.

Institutional buying?

• Again, I am new to the microcap space. To my understanding, many large Institutions will not be able to buy EMJX because it is a penny stock. We shouldn't expect Blackrock to just start buying EMJX after the merger is complete. I am just wondering who exactly do we expect to buy this stock so that we can decrease the float ASAP? Other hedge funds? I need to dive deeper into this. My biggest concern is still the amount of shares.

Institutional buying update-

• On slide 15 of the pdf I noticed the word mandate. Mandates are good. It means that there is some form of regulation that is in place or a need that needs to be fulfilled.(That’s why I was initially in SKYX before selling for EMJX). On slide 17 there is a list of 10 mandates that EMJX wants to partake in. I believe these are some of the institutions that we are talking about. It is likely that these mandates, which are essentially potential customers, will also take equity stakes in EMJX. That is my speculation.

1. Also, the date for those mandates says (2025-2027). Unless this is an outdated time-frame, I would actually be disappointed if some of these mandates aren’t already in motion.

 

My understanding on how EJ views future dilution-slide 12 of pdf.

• Their claim is that the business model will allow them the cashflow to either not need to issue shares for cash or that their premium share price will allow them to sell fewer shares to raise more cash. I understand and yes it makes sense. The major issue with this? This requires a continuing bull market or the shares to be priced at a premium. If the market is bearish or the market determines EMJX does not deserve a premium then if they need to raise cash any shares issued will certainly be dilutive.

TLDR

Why Long- Crypto Cycle and Data Premium

Risk and Confusion- Dilution, Branding/marketing confusion

*I put minimum effort into the TLDR. I literally had no idea what that acronym meant until last week lol. Work on your attention span folks. Just read the post. Or not. Your choice.

I am still sitting with my 52,000 shares.

Good Luck to you all!