ISW Holdings (OTC US:ISWH) is quickly maturing into one of the most interesting speculative plays in the cryptocurrency space in the stock market, especially after its announcement last week of a long-term partnership with crypto giant Bitmain.
The ISWH story really revolves around the company’s partnership with Bit5ive LLC last summer. Bit5ive, as many readers are likely aware, is North America’s largest provider of collective management of renewable, clean energy crypto mining services and equipment.
The partnership between ISWH and Bit5ive was done as a JV within which the companies designed the POD5 mining solution – a fully self-contained high-PUE mining solution designed for installation and plug-and-play mining capability.
It’s basically a shipping container – like what you see on the back of an 18-wheeler on the highway – filled with hundreds of mining rigs and a fair amount of environmental management resources to maintain systematic control over functionality, temperature, and efficiency.
According to company materials, each POD5 unit can generate around $2.9 million in crypto-mining revenues per year at current coin pricing.
Georgia on my Mined
One very important recent release by ISW Holdings (OTC US:ISWH) was its announcement that it has finalized its land lease development agreement, which grants the Company full use of a 1st phase 7-acre parcel of property in Georgia tailored for cryptocurrency mining operations, complete with access to energy resources capable of powering over 100 MW of cryptocurrency mining capacity.
In other words, it has secured property in GA with huge power resources for a mix of hosting and mining activities.
“This agreement puts us in position to scale up into a top-five global cryptocurrency mining position by volume,” remarked ISW Holdings President and Chairman, Alonzo Pierce.
“We control an ideal plot of land, to initiate the 1st phase with additional access to over 100 megawatts of power for use in crypto mining. We also have our close partner Bit5ive, LLC – North America’s largest provider of collective management of renewable, clean energy services and mining equipment – right on premises to manage and develop the mining operations at the site. China is cracking down hard and shutting down its domestic crypto mining industry. This has enormous consequences because more than half of the world’s cryptocurrency mining has been taking place in China. As a result, we are already fielding calls from mining firms seeking a new home. We are now equipped to handle this at scale. We have the power!”
They do indeed.
Bitmain, based in China, is possibly the most well-known name in cryptocurrency mining of any company in the world. That makes it awfully big news that ISW Holdings (OTC US:ISWH) just announced a long-term partnership with Bitmain.
The two companies signed an agreement that ISWH believes will form the backbone of its Phase One launch of its cryptocurrency hosting and mining operation in Georgia.
ISWH management says it believes the deal could drive as much as $200 million in annualized revenues based on power commitments and cryptocurrency pricing.
Irene Gao, Antminer BD Director NCSA Region, Bitmain, said, “We are excited to have signed this new pioneering project to begin cooperation with ISW Holdings, a new milestone for the industry for creating hosting facilities overseas. The 200 MW facility is the first phase of our long-term partnership, utilizing renewable energy as its source. We expect to further expand this project into the future to support the development of the industry.”
“Bitmain is probably the most recognizable name in the mining space, and we are excited that they will be a major piece of our success in Georgia,” remarked Pierce. “Once our 200 MW power tranche is fully utilized, we anticipate annualized revenues of over $200 million, but that will only close the first phase of our vision. We look forward to discussing our next phases in due course. If we are able to execute according to our full vision, we have the potential to drive exponential revenue growth ahead.”
The Next Chapter?
ISWH management also noted in its release that a recent crackdown in China has taken roughly 54% of the global hashrate offline. This resulted in the largest ever single day easing of bitcoin mining difficulty (~28%) through the bitcoin algorithm adjustment that took place on Saturday, July 3, 2021. It has also resulted in increased demand for cryptocurrency hosting services outside of China as mining operations seek to relocate geographically.
ISWH is not as well known as some of the other key stocks in the crypto space – names like HIVE Blockchain Technologies Ltd (NASDAQ:HVBT), MicroStrategy Incorporated (NASDAQ:MSTR), Marathon Digital Holdings Inc (NASDAQ:MARA), Riot Blockchain Inc (NASDAQ:RIOT), Coinbase Global Inc (NASDAQ:COIN), Bitfarms Ltd (CVE:BITF), and Grayscale Bitcoin Trust (Btc) (OTC US:GBTC).
However, we would point to the company’s ability to ink a long-term deal with Bitmain as clear evidence that ISWH is rapidly rising in status and could be on its way toward global top-five positioning as a publicly traded crypto miner – something the market hasn’t remotely discounted in pricing ISWH shares.
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