Emerging Opportunities in the Crypto Stock Space (HIVE, XCPL, MARA, RIOT, MSTR, COIN, SQ, BITO)

Any survey of the most promising long-term high-growth areas of the stock market must include a few key themes: green energy, cryptocurrency, AI, robotics, genomics, and the metaverse.

In a potential bonanza for new investors, all of these thematic investment opportunities have pulled back massively over recent months and now represent genuine value themes after the bones and blood of overly enthusiastic momentum chasers from the last cycle have been scattered in the sun to bleach.

Perhaps the most interesting of these is the crypto space because it ties in with the larger fintech decentralized finance theme as well as blockchain technology, which has applications for green energy, AI, robotics, and the metaverse, all in one.

It’s the Swiss army knife growth theme.

This has powerful implications for a number of interesting stocks in the space. We take a look at some of the most exciting stories in the space below.

 

Hive Blockchain Technologies Ltd. (Nasdaq:HIVE) went public in 2017 as the first cryptocurrency mining company with a green energy and ESG strategy.

The company defines itself as a growth-oriented technology stock in the emergent blockchain industry. HIVE owns state-of-the-art, green energy-powered data centre facilities in Canada, Sweden, and Iceland, where it claims to source only green energy to mine on the cloud and HODL both Ethereum and Bitcoin. Since the beginning of 2021, HIVE has held in secure storage the majority of its ETH and BTC coin mining rewards.

Hive Blockchain Technologies Ltd. (Nasdaq:HIVE) recently announced production figures from the Company’s global Bitcoin and Ethereum mining operations for the month of March 2022, with a BTC HODL balance of 2,568 Bitcoin and 16,196 Ethereum as of April 3, 2022. In addition to this the Company is pleased to announce two milestone accomplishments of reaching 2 Exahash of Bitcoin mining and 6 Terahash of Ethereum mining this month.

Frank Holmes, Executive Chairman of HIVE stated “We are very pleased to report HIVE has continued its extremely strong momentum in expanding our hashing power, notably our Ethereum mining hash power grew by 33% this month. In March we produced an average of 9.0 BTC per day, and we are pleased to note that as of today, we are producing approximately 9.0 BTC a day even after the recent difficulty increase of 4%. Our Bitcoin hashing power increased in March and at the calendar month-end our hashrate was 2.0 Exahash, which translated into a 6% increase in BTC mining on a month over month basis, while BTC prices corrected.”

Even in light of this news, HIVE has had a rough past week of trading action, with shares sinking something like -4% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way.

Hive Blockchain Technologies Ltd. (Nasdaq:HIVE) managed to rope in revenues totaling $86M in overall sales during the company’s most recently reported quarterly financial data – a figure that represents a rate of top line growth of 381.2%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($326.5M against $19.4M).

 

XCPCNL Business Services Corp. (OTC US:XCPL) bills itself as a venture development business that leverages its knowledge, skills, and experience in the consumer products industry.

The company’s primary mission is to provide marketing, technology, and other business services to fast-growing consumer product companies and big-box retailers. It most recently moved into the cryptocurrency marketplace through its acquisition of Centiment Capital.

XCPCNL Business Services Corp. (OTC US:XCPL) recently announced phase one of its acquisition of Centiment Capital, which will involve the further development and commercial application of MantasPrime, a Crypto Trading Platform. MantisPrime has developed a proprietary emotional search engine (“EiQ”) that utilizes neuro data, machine learning and artificial intelligence to sense and predict emotional responses within any number of categories.  This EiQ can predict movements in the market by analyzing public sentiment.  In other words, the EiQ knows where the crowd is headed before the group becomes cognizant.  This EiQ was initially developed at a hackathon at the Massachusetts Institute of Technology (MIT) and the University of Kansas School of Medicine (KUMC).

According to its release, the EiQ can help serve as a signal generator by predicting market changes and pricing.  This means an individual can lead the crowd instead of studying it.  EIQ allows for a quick reaction to a changing market and sets the call to action for others to follow. Via the Company’s Crypto as a Service Platform (CaaS™), Manta Prime, a Neuro / AI-Enabled Trading tool, will allow the processing of public news, data streams, and behavior patterns to inform a long/short trading strategy.  MantisPrime currently operates short on crypto positions driven by AI research and automated trading technology.  The algorithms have high EQs, read markets and apply neural-based sentiment models.

Mantis Prime will be the proprietary trading business arm of XCPCNL once the acquisition of Centiment Capital is complete. The commercial application is anticipated to be a 9-figure generator.

XCPCNL Business Services Corp. (OTC US:XCPL) CEO Tim Matthews stated, “We are beyond ecstatic to be in the commercialization phase with Micah and his team to finalize consumer-facing for Mantis and complete the acquisition.  This will be one of many consumer-centric products to be developed from this partnership.”

 

MicroStrategy Inc. (Nasdaq:MSTR) engages in the provision of enterprise analytics and mobility software. The firm designs, develops, markets, and sells software platform through licensing arrangements and cloud-based subscriptions and related services. Its product packages include Hyper.Now, Consumer User Bundle, and Power User Bundle.

But MSTR has also become the front-line soldier in the crypto revolution with its enormous cash investments into Bitcoin holdings.

MicroStrategy Inc. (Nasdaq:MSTR) recently announced financial results for the three-month period ended March 31, 2022 (the first quarter of its 2022 fiscal year).

“We continued to see strong results across both of our corporate strategies in the first quarter of 2022. We had an increase in Cloud revenue and billings, with growing adoption of the MicroStrategy platform by new and existing customers,” said Michael J. Saylor, CEO, MicroStrategy.

“We also furthered our position as the leading public company investor in bitcoin through the issuance of our first bitcoin-backed term loan. We have demonstrated that our bitcoin can be productively used as collateral in capital raising transactions, which allows us to further execute against our business strategy. Today, MicroStrategy is the world’s largest publicly traded corporate owner of bitcoin with over 129,200 bitcoins.”

MSTR has registered increased average transaction volume recently, with the past month seeing 12% beyond what we have been seeing over the larger time frame. This should not be overlooked with the stock trading on a float that is very limited at just 9.3M shares. It’s something the veterans know to key on: a mechanically driven price squeeze can result from this type of mix of small float and ramping attention from traders.

MicroStrategy Inc. (Nasdaq:MSTR) has a significant war chest ($64.4M) of cash on the books, which must be weighed relative to about $312M in total current liabilities. One should also note that debt has been growing over recent quarters. MSTR is pulling in trailing 12-month revenues of $510.8M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 2.4%.

Other key names in the crypto stock space include Marathon Digital Holdings Inc. (Nasdaq:MARA), Riot Blockchain Inc. (Nasdaq:RIOT), Coinbase Global Inc. (Nasdaq:COIN), Block Inc. (NYSE:SQ), and ProShares Bitcoin Strategy ETF (NYSEArca:BITO).

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Published by Lisa Ray

Lisa has a Bachelor of Arts in journalism from Purdue University and 3 years of experience in the publishing field.