Steven Bregman: Yes. So basically there’s two components set. The first component is yes, we don’t get revenue. We, own a piece of the profits. So basically we get distribution that’s designed to offset, it gives us enough capital to pay our taxes. A certain amount of Horizon is other than the tax distribution is reinvested. So that number on the balance sheet, the $14 million odd, that doesn’t represent our assessment of the value. It basically represents the investments on Horizon’s balance sheet. There is a little bit of goodwill there, not a lot of it. So you can decide if that goodwill is merit or not, but it’s mostly cash and investments. So for the most part, it’s a hard book. At some point we’re going to have to monetize horizon and then you’ll get to see a real trading value and you’ll know for sure.
But right now I think the number is something like, either 4.93 or 4.95. So if you take that let’s call it 14.5 million to make it easy and you divide by 0.0495, which is approximately right, so 14,563,000, I’ll use a calculator. I make it a little precise divide by 0.0495, and that’s $294,202,000. That’s the value. We don’t have $242 million in cash and hard assets there. It’s not that much. So there’s some goodwill there, but we’ve got a lot. So I’m not disclosing the number we have right now yet, but as I said, there’s not a lot of goodwill there, especially not for an investment management company. In the right market, there’ll be some type of monetization event, probably a listing at some point and you’ll get to see what the trading value is because it’s going to have to happen at some point, just not happening today.
So but it’s a sympathy, but to answer your question directly, it’s separate and distinct from the revenue share.
Thérèse Byars: Next question regarding Winland, my understanding was that one of the strategies was to grow the mining operations significantly. With the current level of distress in crypto mining, is there any reason why Winland has not acquired additional significant mining assets or made strategic investments like the Argo blockchain Senior Notes, which are currently paying and were available at 4 cents on the dollar or less than four months of accrued interest to quote Hillel the Elder, “If not now, when?”
Murray Stahl: Okay, well, the answer is very simple and you can see it quantitatively on what’s called Luxor ASIC Price Index. The prices machines are collapsing. So to go out and acquire machines, there’s no reason to do that when the prices are collapsing. The machine prices are not properly discounting the mining reality and approaching halving, we don’t want to buy any machines. And the mining business, the word mining equipment was tremendously overvalued. How overvalued is it? Can we give you something quantitative? That’s a rhetorical question. I believe it’s implied in the question I just got, so I’ll answer it. You’ll recall about two and a half years ago, we did a swap with Winland. FRMO bought some equipment, brand new equipment, which we in turn immediately sold to Winland in exchange for shares of Winland.
So I think we got a pretty good deal relative to price winland was trading at that time. That equipment, if you look at this price index, that equipment rose in value a lot through December or November of 2021. And then if you look at that Luxor ASIC prices and machines proceeded to collapse. When I say collapse, I may be a percent or two off, I would say lost from the high point 86, 88, maybe 89% of their value, something in that range. Okay? If today you wanted to buy the machines that we had sold to Winland two and a half years ago, which by the way, we’d depreciate over three years and it’s been over two and a half years, so it, they’re almost fully appreciated machines, you would pay a price today, even not dramatically different than what Winland paid or what we paid to buy them FRMO few years ago.
