Debt is a double edge sward. When used properly it can be extremely useful.

If debt is used to create something that is worth substantially more than the interest on the debt; then it can play a positive role.

The kicker is that HIVE does not need the money being borrowing. We are incurring 20% interest because the witnesses want to earn 20% interest on their HBD.

Essentially we are borrowing money at a high interest rate because the bankers (aka friends of the witnesses) want to loan money at a high rate, not because we need the money.

Private equity firms are known to play a similar game. They will saddle the companies that come under their control with huge amounts of debt at high interest because they like lending money at junk bond rates.

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