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Bitcoin Stocks Back in Focus (RIOT, AXXA, MARA)

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JPMorgan, one of the world’s largest investment banks, predicts Bitcoin could reach a value of $146,000. According to a Bloomberg report published last month, analysts said the digital currency could overtake gold, becoming the go-to inflation-hedge asset, helping to drive its price through the roof.

Elon Musk, the richest person in the world and the star chief at Tesla (TSLA), also recently gave Bitcoin a public nod.

PayPal and Square are on board.

That just scratches the surface. The big point is this: Bitcoin has broken through and garnered mainstream interest and institutional support. The sky is now the limit.

With that in mind, we take a look at some of the most interesting ways to participate from an equity perspective, including: Riot Blockchain Inc (NASDAQ:RIOT), Exxe Group Inc (OTCMKTS:AXXA), and Marathon Patent Group Inc (NASDAQ:MARA).

 

Riot Blockchain Inc (NASDAQ:RIOT) holds non-controlling investments in blockchain technology companies and is one of the most readily identified on any list of stocks in the crypto space. It’s a mainstay for traders in the space at this point, and for good reason.

Shares have vaulted higher as Bitcoin has powered ahead over recent months. The company’s primary mining facility is located in Massena, New York under a colocation agreement with Coinmint.

Riot Blockchain Inc (NASDAQ:RIOT) recently announced an expected 65% increase in bitcoin mining hash rate capacity resulting from the purchase and future deployment of 15,000 S19 Pro and S19j Pro Antminers from Bitmain Technologies Limited (“Bitmain”). The approximate $35 million purchase is comprised of 3,000 S19 Pro Antminers (110 TH) and 12,000 S19j Pro Antminers (100 TH). These additional miners are scheduled for receipt and deployment starting in May 2021 and continuing through October 2021.

According to the release, this new order of miners, combined with the Company’s prior miner purchases, is expected to significantly increase Riot’s estimated bitcoin mining hash rate from the previously announced 2.3 EH/s to 3.8 EH/s. The Company has been receiving and deploying new miners consistently through 2020, including this new purchase; the delivery schedule continues into the fourth quarter of 2021.

The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 27% in that timeframe. Shares of the stock have powered higher over the past month, rallying roughly 24% in that time on strong overall action.

Riot Blockchain Inc (NASDAQ:RIOT) managed to rope in revenues totaling $2.5M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 41.6%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($39.1M against $1.3M).

 

Exxe Group Inc (OTCMKTS:AXXA) is an interesting play on this theme. The company is diversified well beyond just bitcoin, but it has strong exposure here and is also a prime candidate for a short squeeze given the massive amount of shorting going on in the name over recent weeks according to OTCShortReport.com.

The company frames itself as a diversified corporation focusing on acquisitions in the following sectors: real estate, sustainable and digital technology, media, agribusiness, and financial services. Exxe Group is an acquisition-driven company. The Company strategy is to acquire controlling equity interests in undervalued companies and undertake an active role in improving their performance – accelerating their growth by providing both access to capital and management expertise.

Exxe Group Inc (OTCMKTS:AXXA) recently released a corporate update on its revamped UK-based currency exchange services operations. According to the release, AXXA is targeting first year revenue generation from 1Myle in excess of $15 million.

1Myle buys and sells alt currencies, including Bitcoin, taking advantage of price differentials. One of 1Myle’s key advantages in the marketplace is its proprietary software which hedges currency fluctuations and books gains in fiat. The hedging operation allows the Company to continually profit irrespective of price movements or direction. As a result, corporate parent AXXA continually increases its net Bitcoin asset bases via 1Myle without needing to commit additional fiat currency.

Eduard Nazmiev, Ph.D., CEO and President of Exxe Group commented: “AXXA has been focused on building and acquiring financial technologies for several years. Our ability to launch new btc fiat exchange services comes at a time when interest in Bitcoin and non-fiat assets are growing around the world. 1Myle is the crystallization of an effort that will see a massive expansion of AXXA’s capabilities and revenue generation capabilities.”

Exxe Group Inc (OTCMKTS:AXXA) pulled in sales of $8.2M in its last reported quarterly financials, representing top line growth of 211.3%. That growth stands out given the attack over recent weeks by exposed shorts. Given its strong exposure to the Bitcoin theme, further gains in the cryptocurrency could help spark a full-on squeeze in shares.

 

Marathon Patent Group Inc (NASDAQ:MARA) 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 that it and DMG Blockchain Solutions Inc. have entered into a non-binding memorandum of understanding to form Digital Currency Miners of North America, which will be a U.S.-based non-profit entity whose mission is to create a better mining environment for North American miners, to help improve their financial performance, and to create North America’s first cooperative mining pool.

According to the release, Marathon Patent Group and DMG’s U.S. subsidiary, Blockseer, are working together to establish DCMNA, a non-profit entity focused on North American digital currency opportunities, including decentralizing the Bitcoin hashrate and providing more transparency for North American miners. DCMNA’s principal initiative is to create North America’s first cooperative mining pool by licensing Blockseer’s mining pool to all DCMNA members in a cooperative structure. Mining partners who are members will receive rebates based on the hash rate they contribute to the overall pool, thus improving the mining profitability of DCMNA members.

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 11% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 152% in that time on strong overall action.

Marathon Patent Group Inc (NASDAQ:MARA) managed to rope in revenues totaling $835K in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 159.6%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($17.7M against $1.1M).

Published by Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. You may contact Brendan via his email (brendanbyrne@wallstreetpr.com) or his Google+ page (https://plus.google.com/u/0/116608759701551457422).

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