Investors have been on a wild ride in recent days, with risk assets soaring, then diving, then soaring again. In Tuesday’s buying frenzy, perhaps the strongest area in the market was anything attached to the cryptocurrency theme, with Bitcoin pushing higher, and stocks related to it going bananas.
This may be a strong sign that the cryptocurrency bull market is still riding out in front of the broad upward trend in market-leading assets.
With that in mind, we take a look at some of the most interesting ways to participate in this trend from an equity perspective, including: Riot Blockchain Inc (NASDAQ:RIOT), Exxe Group Inc (OTCMKTS:AXXA), and Canaan Inc – ADR (NASDAQ:CAN).
Riot Blockchain Inc (NASDAQ:RIOT) is expanding and upgrading its mining operations by securing the most energy efficient miners currently available.
The company also holds certain non-controlling investments in blockchain technology companies. Riot is headquartered in Castle Rock, Colorado, and the company’s mining facility operates out of upstate New York, under a co-location hosting agreement with Coinmint.
Riot Blockchain Inc (NASDAQ:RIOT) recently announced that it will achieve an estimated hash rate capacity of 1.06 Exahash per second with the deployment of the newly received 2,002 S19 Pro Antminers.
“Exceeding 1 EH/s in hash rate capacity marks a major milestone for the Company,” said Jason Les, CEO of Riot. “While we are proud of this accomplishment, we view it as the successful completion of just one of many steps of our ongoing growth plan. Riot continues to receive and deploy next-generation miners from Bitmain and remains on schedule to more than triple our currently deployed capacity by the fourth quarter of 2021.”
The stock had suffered a bit lately, but exploded higher on Tuesday to power back above the key $50 level as BTC pushed back above the $50k area. Shares of RIOT remain well above major moving averages.
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).
Exxe Group Inc (OTCMKTS:AXXA) is diversified well beyond just bitcoin, but it has strong exposure to the alt-currency 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’s 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 financial results for its third fiscal quarter ending December 31, 2020, highlighted by its acquisition of M Meditech GmbH to service the Swiss medical supplies market, the rebranding of Vinza Limited to 1Myle, repositioning 1Myle as a Bitcoin and crypto exchange services operator and a focused high-frequency arbitrageur, and its completion of all 1Myle license amendment and name registration processes with the Exchanges it is working on.
Eduard Nazmiev, Ph.D., CEO, and President of Exxe Group commented: “Exxe Group is pleased to report record total gross revenues of $23.7M and gross revenue per share of $0.048 for the first three Quarters of FY-21. Based on continued strength in the markets in which we operate AXXA is raising its FY-21 annual revenue forecast by 6% from $30.8M to $32.7M.”
Exxe Group Inc (OTCMKTS:AXXA) generated $9,263,526 gross revenues in 3Q2021 surpassing the $8.2M record set in 2Q2021; a 13% sequential Quarter-over-Quarter growth. Compared to the same period last year, 3Q revenue increased 103% from $4,547,502. Net income for the period was $2,390,875 as compared to net income of $147,272 in 3Q2020, an increase of 1,523%.
Canaan Inc – ADR (NASDAQ:CAN) provides high-performance computing solutions to efficiently solve complex problems. With the recent boom in Bitcoin prices, the demand for cryptocurrency mining equipment has propelled the stock to new heights, and for good reason.
Canaan Inc. is currently focused on the research and development of advanced technology, including such areas as AI chips, AI algorithms, AI architectures, system on a chip (SoC) integration and chip integration. Using the AI chip as its base, Canaan Inc. has established an intellectual value chain. Canaan Inc. also provides a suite of AI service solutions and is able to tailor these solutions to the needs of its partners.
Canaan Inc – ADR (NASDAQ:CAN) recently announced that its revenue visibility has improved substantially in 2021 as a result of attaining purchase orders totaling more than 100,000 units of bitcoin mining machines from customers in North America. According to the release, many of those purchase orders were placed with prepayment and will likely occupy the Company’s current manufacturing capacity entirely for the full year of 2021 and beyond. With those fully committed purchase orders, the Company now enjoys a much higher degree of revenue visibility and more precise forecast.
Mr. Nangeng Zhang, Chairman and Chief Executive Officer of Canaan, commented, “We have changed our operations model in 2021. Previously we were selling bitcoin mining machines mostly to individual mining operators who may not have longer-term planning. In late 2020, we shifted our client base to mostly publicly traded companies and bitcoin-focused investment funds which tend to place sizable orders with longer-term commitment. As a result, we can now forecast our revenue much more precisely.”
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 7% in that timeframe.
Canaan Inc – ADR (NASDAQ:CAN) pulled in sales of $23.6M in its last reported quarterly financials, representing top line growth of -75.3%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($56.7M against $24.4M).