Release Date: January 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- FRMO Corp (FRMO, Financial) reported a record book value per share of $9.39, indicating strong financial health.
- The company has a significant investment in Horizon Kinetics, which is now publicly traded, potentially increasing its asset value.
- FRMO Corp (FRMO) is actively involved in cryptocurrency mining through its investments in Winland and Consensus Mining, with plans to expand its operations.
- The company is exploring strategic uplisting opportunities to enhance shareholder value and market visibility.
- FRMO Corp (FRMO) is strategically positioned to benefit from the growing demand for data centers, leveraging its access to significant water resources.
Negative Points
- There was confusion regarding the reported book value per share, initially misstated as $18.66 instead of the correct $9.39.
- The company faces challenges in providing timely updates on book value due to differences in fiscal year reporting with Horizon Kinetics.
- FRMO Corp (FRMO) has not yet completed its uplisting process, which could limit its market exposure and investor interest.
- The company is cautious in its approach to acquiring a controlling interest in Winland, which may slow down potential strategic benefits.
- FRMO Corp (FRMO) has not engaged in stock buybacks, which some investors might view as a missed opportunity to enhance shareholder value.
Q & A Highlights
Q: Has management ever looked at ABX exchange (ABXXF)?
A: Murray Stahl (Trades, Portfolio), Chairman and CEO, stated he is not familiar with ABXXF but will look into it and provide an informed opinion in the future.
Q: Can you provide an update on the Miami Future Exchange and its path to profitability?
A: Murray Stahl (Trades, Portfolio) explained that the futures business is generally profitable due to incremental revenue growth. The IPO market has been weak, affecting potential IPO timing, but MIAX's volume indicates positive performance.
Q: What is the current book value update as of January 17, 2025, versus November 30, 2024?
A: Murray Stahl (Trades, Portfolio) clarified that he cannot provide the January 17 number due to undisclosed performance fees from Horizon Kinetics, which affects the book value calculation.
Q: Why is FRMO still in the Bitcoin mining business instead of just holding Bitcoin?
A: Murray Stahl (Trades, Portfolio) highlighted that mining has offered significant returns, as evidenced by Winland's market value being over four times its book value. Mining allows for increasing the number of coins per share, unlike ETFs, which face declining units due to fees.
Q: What strategic perspectives have new directors brought to FRMO's board?
A: Murray Stahl (Trades, Portfolio) mentioned that the expansion of the board is part of the preparation for uplisting and to strengthen the board with diverse expertise in asset classes, legal, and accounting areas.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
