Be warned. We are activists, usually on the short side. We are biased. We do our best to find and present facts, based on extensive primary research and using public sources. But we will profit if these stocks decline or, when we are long, rise in value. We do not offer advice on how to trade a stock. We present our views.

J Capital is short Bit Mining Limited (BTCM)
This failed lottery company has been reborn in the crypto-scam world

​
  • BTCM has been losing money since 2015, a year after its IPO. We think that’s intentional.
  • We’ll show that the crypto mining plan is end-to-end hype.
  • We found that BTCM overstated by 650% the revenue of the offshore lottery business it bought then falsely blamed a regulatory change for plummeting income.
  • The company has been through five lines of business and three auditors since its core business was banned in 2015. Crypto mining is the latest promote.
  • BTCM is known in China for running low-level scams and Ponzis. Unfortunately, a lot of U.S. investors​ have not yet caught on to the grift.

FEATURED REPORTS

September 9, 2020
January 11, 2021

NAK US

Pretend and Extend

We believe Northern Dynasty has crafted a money-losing mining plan to achieve government approvals. Since management is bonused on lobbying success instead of for producing minerals, NAK has no reason to care that the new plan is irrational: we think it will lose money, leave investors with a stranded asset, and be canceled anyway if Joe Biden is elected.

So why has NAK twisted itself into this knot? The CEO of Pebble Partners, the operating entity for NAK’s low-concentration gold and copper deposit, will receive $4.4 mln of the promised $12.5 mln bonus for winning a green light just to start the permitting process.
 
We believe that the deposit cannot be mined profitably and that mining majors Anglo American (AAL L) and Rio Tinto (RIO US) know that. 

BTBT US

“The Company was not able to reach Mr. Liu.” 

With key executives in jail or on the lam for having bilked Chinese investors out of $42 mln in a fraudulent P2P business, Bit Digital (BTBT) has moved on to a fake crypto currency business. We will show that the assets probably do not exist, and the business is designed to steal funds from investors.

BTBT tried to downplay the criminality. It disclosed that it had to replace Director Liu Xiaohui in September 2020 because “the Company was not able to reach Mr. Liu.” That is because, as BTBT knew, Liu was in jail. It reported that the then-CFO, Leng Jing, also in jail, was “the subject of [such] criminal enforcement measures.” The VIE bank accounts were frozen by a Shanghai court and remain frozen to this day.

Once police had shut down its business, BTBT tried to distance itself by selling the China operations, for $10 plus “other good and valuable consideration.” Actually, BTBT likely has liability for the $42 mln lost through fraud.
​
BTBT is now onto its third scheme since IPO for stealing money from investors. There was P2P, car rental, and now “bitcoin mining.” The company reported at end Q3 2020 that it was operating 22,869 bitcoin miners in China, but that is simply a lie. ​
May 28, 2020

NG TSX

Pipe Dream

For the last 15 years, NovaGold’s management team has systematically misled investors with subjective presentation of information about a deposit so remote and technically challenging that the mine will never be built. Over those years, they’ve been treating this 12-person concept company like an ATM, awarding themselves base salaries that rival those of the CEOs at Newmont and Barrick and total compensation packages comparable with those at Rio and BHP. If the information from the company’s feasibility studies were presented in a more honest light, investors would understand that the Donlin deposit, of which they own 50%, is not feasible to put into production at any gold price.
June 25, 2020

IDEX US

Champion of Stock Promotes
December 3, 2020

TPIC US

We Are Long TPIC!
December 18, 2020

CBAK US

The Undead: Why CBAT Has Zero Value
Ideanomics (IDEX) (formerly Seven Stars Cloud Group, Inc. and before that WeCast and before that You on Demand Holdings and before that China Broadband) is a zero. The company changes its name and promotional story so frequently that it’s hard to keep up. One thing remains a constant, despite all the press releases, buzzwords and hype: shareholders get wiped out.
We believe TPI Composites (TPIC) presents an interesting opportunity to own a business inflecting toward profitable growth with optionality on electric vehicles. In its core business, we believe TPIC may grow EBITDA by 250% over the next two years, propelled by strong demand for new wind turbines. Out beyond two years, demand for offshore wind–where the World Economic Forum predicted an 18.6% CAGR before factoring in Biden Administration programs—is likely to turbo-charge growth and profitability. While we have yet to see results from the EV business, TPIC has secured multiple contracts with automakers including Proterra and Workhorse, and, unlike many of the EV scams with little substance, possesses key EV expertise in composite manufacturing.
CBAK Energy Technology Inc. (CBAT) represents the barely re-animated corpse of CBAK, a Chinese reverse merger that lost all its manufacturing assets to default in 2014. In 2015-16, CBAT raised $113 mln from investors to build new factories—and, we will show, appears to have simply taken a lot of that cash. 

History is repeating itself. CBAT appears to be on the brink of another default. CBAT “is about to go bust; the factory director already ran away,” said a recently departed engineer on the phone with us. “It’s all along been half dead, half alive, mainly relying on the parent company for cash injections to stay alive.” 
​Cartoon by Johannes Leak
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