There’s a long list building that presents a diversified answer to the question of why Bitcoin is going through the roof right now. We will attempt to point out a few of the most critical reasons and then some instruments that may provide an interesting angle on this theme for outsized potential returns.
First off, central banks and governments have created over $22 trillion in stimulus this year (according to BofA), and Bitcoin is cheaper and easier to store and transfer than gold, but equally scarce and more transactable in real-world scenarios.
Secondly, Bitcoin has established an accelerating curve of legitimacy this year, following “endorsements” of the most important kind (financial) by multiple billion-dollar Fortune 500 companies, arguably taking it around the curve toward inevitable mainstream utility over coming years.
Third, the world’s reserve currency – the US Dollar – is based and grounded at the US Treasury, which was just hacked by the Russians (we believe), making it potentially more vulnerable to cybersecurity issues than Bitcoin. Given that this issue has been the silver bullet bear argument since its inception, this should be a pretty important factor on relative merits.
Given all of this, should it be any wonder that Bitcoin is up nearly 500% since March. The euro has also been very strong, according to FX analysts. It’s up 14% over the same period. Gold? 27%. The world is waking up. With good reason. Gold is an $11 trillion market. Bitcoin is a $400 billion market. It has some catching up to do.
With that in mind, we take a look here at some of the more interesting names in the space, including: Riot Blockchain Inc. (NASDAQ: RIOT), HIVE Blockchain Technologies Ltd (OTC: HVBTF), ISW Holdings Ord Shs (OTC: ISWH), and Marathon Patent Group Inc. (NASDAQ: MARA).
Riot Blockchain Inc. (NASDAQ: RIOT) has been exploding higher in recent action. This may be currently the most obvious pure-play stock specializing in cryptocurrency mining with a focus on bitcoin.
Riot also holds non-controlling investments in blockchain technology companies. It is also one of the most readily identified on any list of stocks in the crypto space, making it a popular stock for traders actively involved on a thematic basis. Riot is headquartered in Castle Rock, Colorado, and the Company’s primary mining facility is located in Massena, New York under a colocation agreement with Coinmint.
Riot Blockchain Inc. (NASDAQ: RIOT) most recently announced an 8 megawatt (MW) pilot project to assess the potential for higher productivity and lower cost mining opportunities in Texas. According to the release, Riot has teamed up with two leading-edge technology companies, Enigma Digital Assets AG (“Enigma”) and Lancium, LLC to launch the pilot project. The pilot project has the unique dual focus of evaluating Enigma’s next-generation immersion technology to increase mining productivity, in addition to evaluating Lancium’s Smart Response software to reduce energy costs.
“Bitcoin mining is about scale, low-cost infrastructure and ultra low-cost electricity,” stated Michael McNamara, CEO of Lancium. “Enigma’s innovative solutions appear to offer a very meaningful improvement on installed cost and productivity. Lancium’s power-ramping and trading expertise perfectly complements this by delivering an innovative solution to provide the pilot project with low-cost, optimized electricity.”
And the stock has been acting well over recent days, up something like 44% in that time. Shares of the stock have powered higher over the past month, rallying roughly 103% in that time on strong overall action.
Riot Blockchain Inc, (NASDAQ: RIOT) pulled in sales of $2.5M in its last reported quarterly financials, representing top line growth of 41.6%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($39.1M against $1.3M).
HIVE Blockchain Technologies Ltd (OTC: HVBTF) is a mainstay in the crypto mining investment game. Only recently has the stock started to show lights and bangs and catch everyone’s attention. But, again, this is with good reason.
HIVE owns state-of-the-art green energy-powered data centre facilities in Canada, Sweden, and Iceland which produce newly minted digital currencies like Bitcoin and Ethereum continuously on the cloud. Its deployments provide shareholders with exposure to the operating margins of digital currency mining as well as a portfolio of crypto coins.
HIVE Blockchain Technologies Ltd (OTC: HVBTF) recently announced that it has entered into a non-binding, exclusive memorandum of understanding (MOU) with GPU.One Holding Inc to expand HIVE’s Canadian footprint through the potential purchase of GPU Atlantic Inc.
According to the release, pursuant to the MOU, HIVE would purchase 100% of the GPU Atlantic shares. The eventual purchase price is dependent on the negotiation of a definitive agreement, including a formal purchase agreement, and the completion of a satisfactory due diligence process.
“We are excited about this opportunity for HIVE to expand our Canadian footprint through the acquisition of this data centre campus which has access to 50 megawatts (MW) of low-cost green power in Grand Falls, New Brunswick,” said Frank Holmes, Interim Executive Chairman of HIVE. “Further, and important to building our vision, is the GPU.One team of young, skilled and proven data centre professionals with deep high density data centre build out and maintenance experience who will take on executive positions within HIVEs organization.”
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 57% in that timeframe. Shares of the stock have powered higher over the past month, rallying roughly 200% in that time on strong overall action.
HIVE Blockchain Technologies Ltd (OTC: HVBTF) pulled in sales of $17.3M in its last reported quarterly financials, representing top line growth of 9.2%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($22.1M against $12.6M).
ISW Holdings Ord Shs (OTC: ISWH) is an increasingly interesting player with strong ties to the cryptocurrency space. The company partnered with Bit5ive, LLC, over the summer to design and assemble an industry-leading PUE mining pod that works as a self-containing mining solution capable of powering megawatt mining operations. That vision has come to fruition at this point as the company’s tech is now ready to launch into operational status.
Its first prototype pod has been fully assembled and shipped to Bit5ive’s 100 MW Pennsylvania renewable energy cryptocurrency mining project. The company is also a growing player in the telehealth market, recently announcing strong q/q growth from its home and telehealth healthcare segment.
ISW Holdings Inc. (OTC: ISWH) announced this morning that the company has created a new stock option compensation plan in anticipation of the establishment of an advisory board and the addition of new top team members to help the Company optimize its execution as it navigates new and increasingly promising opportunities.
According to the release, the Company has recently made a number of advances that management believes will help attract top talent interested in joining a growing enterprise, including a reduction of $712K in convertible debt through agreement, a reduction of outstanding shares by nearly 25% in return to treasury, a reduction in authorized shares to just 60 million, full assembly, shipment, and green-light of Pod5 high-efficiency cryptocurrency mining pod, being on pace for 7th consecutive quarter of sequential growth in revenues, and being on pace for new Company record financial performance in 2020.
“We have set aside 5 million shares for this incentive program,” commented Alonzo Pierce, President and Chairman of ISW Holdings. “We have gained a lot of traction toward our strategic vision this year, and our future is looking brighter by the day as a result. This new program will allow us to retain our top performers and appeal to an increasingly competitive class of talent, including leading technology engineers, top cryptocurrency mining operators, and financial executives and advisors with the experience and acumen to take this Company to the next level.”
ISWH has been on a strong run over recent weeks, powering as much as 300% higher over the past month.
ISW Holdings Ord Shs (OTC: ISWH) has demonstrated rapid topline growth in its home healthcare operations with six consecutive quarters of sharp sequential growth. Its most recent quarter put the company on an annual run-rate to pull in more than $1.5 million in revenues not counting what appears to be significant growth brewing in its Proceso cryptocurrency mining and mining equipment segment over coming months.
Marathon Patent Group Inc. (NASDAQ: MARA) is a digital asset technology company that mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets. The company currently operates its proprietary Data Center in Hardin MT with a maximum power capacity of 105 Megawatts. Once fully deployed, the Company will have 21,500 Antminer Bitmain S-19 Pro Bitcoin Miners in operation at this facility.
The Company also owns 2,060 advanced ASIC Bitcoin Miners at a co-hosted facility in North Dakota.
Marathon Patent Group Inc. (NASDAQ: MARA) most recently announced it has entered into a contract with Bitmain to purchase 10,000 Antminer S-19j Pro ASIC Miners. Under the terms of the agreement, Marathon will receive an initial batch of 6,000 S-19j Pro Miners in August 2021. The remaining 4,000 miners will be delivered in September 2021.
Marathon’s chairman and chief executive officer, Merrick Okamoto, stated, “We are pleased to have successfully completed the purchase of all ASIC Miners required to fully utilize our 100 MW data center in Hardin MT. We are now looking forward to our next phase of growth as we build out our second data center. The new facility will be powered primarily by clean, renewable power, which is not only cost-effective, but will also allow us to lower our carbon footprint. Currently, we believe the costs to operate our second facility will be similar to the industry-leading rates we have at our Hardin facility: $0.028 per kWh for power and $0.006 per kWh for hosting operations.”
If you’re long this stock, then you’re liking how the stock has responded to the announcement. MARA shares have been moving higher over the past week overall, pushing about 98% to the upside on above average trading volume.
Marathon Patent Group Inc. (NASDAQ: MARA) generated sales of $835K, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 191.9% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($17.7M against $1.1M).
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