6:15 am Pacific

(Exclusive to BMR subscribers – Not for Distribution or Posting on any Board).

A Trump Energy Play

Drill, baby, drill, and bring down energy costs – that’s Trump’s motto, and it’s Poilievre’s as well.

The world has changed since November 5, so the November 7 news regarding the appointment of a new CEO for MAX Power (MAXX, CSE) takes on added significance.

Having witnessed the Natural Hydrogen boom in his native Australia, which has triggered Fortescue to invest in this growing sector in North America, new MAX Power CEO Mansoor Jan is in Saskatchewan this week to aggressively ramp up MAXX’s efforts to become the first company to drill specifically for Natural Hydrogen in Canada.

His BHP Australia / BHP Chile / Rio Tinto Energy roots are going to help make MAX Power succeed in this Natural Hydrogen space beyond what we even imagined at BMR just months ago.

There could be nothing more “Trumpian” than finding new low-cost energy sources in the ground like Natural Hydrogen through drilling, replacing high-cost government subsidized manufactured “green” hydrogen (of course Natural Hydrogen features even lower emissions than manufactured hydrogen).

Natural Hydrogen will help turbo-charge the energy sector – it’ll become another way for Trump and Poilievre to secure low-cost energy security for North America.

No public company in Canada is better positioned than MAX Power to capture the opportunity in Natural Hydrogen, as emphasized by MAXX’s new CEO:

“My broad analysis of Saskatchewan is that the potential for commercial concentrations of Natural Hydrogen extends well beyond the highly prospective southeast part of the province. My goal is to move expeditiously over the coming weeks to get us to the drill-ready stage as rapidly as possible so that MAX Power, by year-end or early 2025, becomes the first company in Canada to drill specifically for a Natural Hydrogen discovery using the best science in the industry. I’ve seen first-hand the natural hydrogen boom in Southern Australia. In Saskatchewan, we have the right geology, the right policy framework and the right team to make big things happen and build shareholder value in the process.

“We are all in on Saskatchewan with an immediate plan to expand our opportunities there. In addition to this key focus, we will continue to explore ways to monetize opportunities with respect to our initiatives related to Ontario, Quebec and Texas as outlined in the company’s Oct. 3, 2024, news release.”

MAX Power closed last week at 23.5 cents, half a penny below where Mansoor bought in the open market last Thursday according to insider trading reports.

Updates On 5 Other Hot Opportunities 

The BC Bud Corp. (BCBC, CSE)

This one’s interesting – whenever you see sudden record volume like this, with the price pushing higher, instinct tells you something’s up.

Worth taking a punt on BC Bud Corp. (BCBC, CSE), in our view, after last week’s action.

Technically, looks like an important breakout is brewing above the 7-cent resistance going back to the 2nd half of last year.

Spirit Blockchain Capital (SPIR, CSE)

We are extremely bullish on the crypto sector and Spirit Blockchain Capital (SPIR, CSE) has become 1 of our “go-to” plays as a proxy for Dogecoin (DOGE).

SPIR has enjoyed back-to-back banner weeks with heavy accumulation now occurring in the 20’s.

The rising EMA-8, currently 21 cents, is providing great support as demonstrated Friday when the stock dipped briefly to 19.5 cents before rebounding to finish the session in the green at 25.5 cents.

Sol Strategies (HODL, CSE)

We first recommended Sol Strategies (HODL, CSE) when it was trading in the 20’s recently and in less than a month it became a 10-bagger.

Extreme temporarily overbought technical conditions have unwound with the stock finding strong support, as expected, in the immediate vicinity of its EMA-8 and EMA-20.

HODL is smartly managed as it continues to carve out a niche in the Solana ecosystem. Its staking operations will definitely benefit from the news last Thursday that the company is adding new, high-quality validator infrastructure from Cogent Crypto.

HODL jumped 13 cents Friday to close at $1.33.

HIVE Digital Technologies (HIVE, TSX-V)

HIVE Digital Technologies (HIVE, TSX-V) has been 1 of our favorite crypto plays going back to 2017.

We have also correctly called most of its biggest moves since then.

HIVE should be a mainstay in every BMR subscriber’s portfolio, though you do need to trade the swings.

Highlights from last week’s Q2 financials:

Financial and Operational Highlights for Q2 FY2025 (USD):

• Total Revenue: $22.6 million, from digital currency mining and high-performance computing (HPC) hosting services;
• HPC Growth: The HPC business achieved a $9.0 million annualized run rate based on YTD revenues, expanding HIVE’s presence in high-performance computing markets;
• Bitcoin Production: Successfully mined 340 Bitcoin during the quarter, contributing to HIVE’s substantial HODL position;
• Adjusted EBITDA: $5.6 million, reflecting strong financial and operational management;
• Net Loss: Net loss before tax of $7.3 million, a significant improvement over the $22.9 million loss in the same period last year;
• Digital Assets: Total digital currency assets valued at $165.2 million, including 2,604 Bitcoin, in line with HIVE’s strategy to build digital holdings. Using Bitcoin price of $63,300 at quarter end.

Technically, what excites us here is the confirmed breakout above the EMA-500 and a 3-year consolidation pattern that closely resembled 2018–2019–2020 prior to a massive surge in the stock.

Neptune Digital Assets (NDA, TSX-V)

Last but certainly not least in our crypto update this morning, Neptune Digital Assets (NDA, TSX-V) remains in the “sweet spot” for accumulation near its EMA-20 after an important breakout above resistance in the 70’s.

Next key resistance is $1.20.

Note:John, Jon and Daniel hold share positions in MAXX. Jon also holds share positions in BCBC, HIVE, HODL, NDA and SPIR.