BitNile Holdings, formerly known as DPW Holdings and Ault Global, has a troubling history of destroying shareholder value. With major exposure to crypto mining and continual shareholder dilution, NILE stock is clearly one to avoid for investors.
Avoid NILE stock as it continues to burn through cash while delivering little value to shareholders. Its share price has seen massive drops of 99% or more for long-term investors who believed in its potential. Simply put, this is a sinking ship that investors should steer clear of.
A Company With a Troubled History
BitNile and its previous incarnations as DPW Holdings and Ault Global have erased value for shareholders time and time again. Its track record shows that it is prone to making short-sighted decisions that ultimately hurt investors.
There are too many examples to list here, but a few highlights include dilutive share offerings, reverse stock splits to maintain exchange listings, and pivoting into dying businesses at the wrong time. No matter the name, it’s the same story told over and over.
While the company promises potential, its history tells a different story. One of broken commitments and destroyed value. Most of its businesses end up going nowhere productive for long-term shareholders.
Overexposure to a Risky Business
With crypto deeply entrenched in a severe bear market, BitNile’s current focus on crypto mining is dangerously ill-timed. Other crypto-related stocks offer far better upside potential with much less risk at current valuations.
Cryptocurrency remains highly speculative, and crypto mining is not a cash cow in today’s environment. BitNile is likely burning through cash to mine tokens that are falling in value each day. This is like trying to build a house on quicksand.
Meanwhile, high inflation and rising interest rates have put pressure on speculative assets. Investors have plenty of alternatives besides buying into BitNile’s flaky crypto mining dreams.
Shareholder Dilution Galore
BitNile’s share count has exploded in recent years due to dilutionary share offerings. It has ballooned from just 9.6 million shares outstanding in 2020 to over 55 million today. And more dilution could be coming soon to fund its rapid cash burn rate.
Massive dilution erodes shareholder value and makes it extremely difficult for the stock price to gain any lasting traction. No matter how many shiny new business ventures BitNile enters, its track record of dilution is too concerning to ignore. Investors get stuck holding the bag.
Money Down the Drain
In 2021 alone, BitNile posted negative operating cash flow of $66.7 million. It continues to recklessly burn through capital with little to nothing to show for shareholders each year.
Where is the money going? Its business ventures have largely been failures if you listen to what the share price tells you. Throwing more money after bad money is never wise.
Until BitNile demonstrates it can turn this cash burn around and deliver actual profits, investors have good reason to be highly skeptical. The company’s actions continue to decimate shareholder value.
Terrible Stock Performance
BitNile’s stock has seen absolutely massive long-term drops of 99% or more, even with adjustments for reverse splits. Its track record shows it can quickly and consistently erase shareholder value.
Many investors have been fooled by periodic short squeezes and empty hype around BitNile’s potential. But in the long run, the stock goes nowhere but down. Temporary pumps quickly lead right back to major dumps.
Smart investors will avoid buying into the noise and hype. BitNile’s consistent long-term destruction of shareholder wealth is all you really need to know.
Likely More Disappointment Ahead
Given its terrible track record, current crypto exposure, and overly promotional management, BitNile will likely continue disappointing investors for the foreseeable future. There are simply too many red flags to ignore.
Until the company can demonstrably turn itself around, investors should steer clear of this mess. The same story of dilution and value destruction is likely to repeat itself over and over if history is any guide.
Better Crypto Investments Are Out There
Rather than risk their hard-earned money on NILE stock, wise investors have many superior alternatives. This includes blue chip cryptocurrencies like Bitcoin and Ethereum.
Investors can also find less speculative crypto equities with honest management teams and a laser focus on creating long-term value. BitNile fails massively on both of these fronts.
Beware the Numerous Red Flags
From continual dilution to negative cash flow to unwise pivots, BitNile has numerous red flags indicating it’s not a wise investment. Savvy investors will tread very carefully around companies with this profile.
The red flags simply pile up too high with BitNile. It checks every box for what you want to avoid in a stock. Don’t become a greater fool by ignoring these blatant warning signs.
Time to Avoid This Sinking Ship
Given its terrible track record, increasingly desperate behavior, and management’s empty promises, investors should avoid NILE stock before the situation deteriorates further. It is clearly a sinking ship.
Every time the company pivots, it’s just rearranging the deck chairs on the Titanic. Existing shareholders get totally drowned out by more and more share dilution. Stop hoping for a miracle turnaround.
Parting Thoughts on NILE Stock
In closing, avoid unnecessary risk and invest your hard-earned money elsewhere. BitNile’s history provides all the evidence you need that it can severely damage portfolios. Don’t become its next victim.
With the greater fool theory on full display here, wise investors will ignore the hype and focus on facts. And the facts say loudly and clearly that NILE stock destroys wealth. Keep your distance from this toxic investment.
