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Investing in the Bitcoin Stock Market (HVBTF, ISWH, MARA, RIOT)

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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 this week, analysts said the digital currency could overtake gold, becoming the go-to inflation-hedge asset, helping to drive its price through the roof.

Again, this is JPMorgan, one of the most respected and revered houses on the Street.

The backdrop for this analysis is the persistent decline in the value of the US Dollar, which is mired in a lasting bear market that took root last year.

But it isn’t just the Dollar. Fiat currencies around the world are languishing relative to commodities, precious metals, and digital currencies as central banks and governments keep the pedal to the metal on stimulus efforts and the tide of philosophical opinion begins to bend ever closer to full acceptance of the so-called Modern Monetary Theory, which is founded on effectively endless creation of new money bound only by forward inflation.

According to Morgan Stanley and Bank of America analysts, the age of MMT is upon us, and the pandemic has done an awfully good job of expediting that transition, with over $21 trillion in new money stimulus around the world in 2020. The result: a 500% rally in the price of Bitcoin over the past three months, with top analysts suggesting that’s only the tip of the iceberg.

With that in mind, we take a look at some of the top speculative plays in the Bitcoin stock space, including: HIVE Blockchain Technologies Ltd (OTCMKTS:HVBTF), ISW Holdings Ord Shs (OTCMKTS:ISWH), Marathon Patent Group Inc (NASDAQ:MARA), and Riot Blockchain Inc (NASDAQ:RIOT).

 

HIVE Blockchain Technologies Ltd (OTCMKTS: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 (OTCMKTS:HVBTF) recently announced the purchase of 4,180 MicroBT WhatsMiner M31S+ next generation miners with an aggregate operating hash power of 334 Petahash per second (PH/s) as it continues to expand its bitcoin mining operations.

According to the release, with the addition of these 4,180 MicroBT WhatsMiner M31S+ Miners, HIVEs aggregate operating hash rate from Bitcoin mining to almost double to an estimated 653 PH/s. Based on the orders that have been placed, this new equipment is expected to be delivered in 9 tranches in 2021, with 180 miners delivered in April and 500 miners delivered in each month in the remainder of calendar 2021 commencing with May delivery.

And the stock has been acting well over recent days, up something like 5% in that time.

HIVE Blockchain Technologies Ltd (OTCMKTS:HVBTF) generated sales of $17.3M, 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 89.9% on the top line. 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 (OTCMKTS:ISWH) is another increasingly interesting emerging player in the Bitcoin space. The company has partnered with Bit5ive, LLC, to design and build an industry-leading self-contained plug-and-play mining pod capable of powering megawatt mining operations with an industry leading PUE. They accomplished this in Q4 of last year. The mining pod will launch this month.

In addition, as announced this morning, the company has also been converting its cash into bitcoin, doing another $20k this week. According to the company, its first transaction as part of this initiative was completed in March 2019, when Bitcoin was just $4k/coin. It has risen over 750% since that time.

ISW Holdings Inc (OTCMKTS:ISWH) shares have been locked in a rapid ascent over recent weeks, powering as much as 2,200% higher since October, as it gets ready to fire up its mining solution.

“We believe in the future of Bitcoin and digital payment systems, and cash represents an unproductive asset given the degree of monetary expansion, stimulus, and debt dragging down traditional currency systems,” commented Alonzo Pierce, President and Chairman of ISW Holdings. “We are also on schedule to launch mining operations through our Pod5 solution at the Bit5ive renewable energy project by the end of January.”

But it is also running on its telehealth segment’s success. According to company materials, it ended the year with its seventh straight quarter of sequential revenue growth, and continues to project 2021 revenue growth of as much as 500% on a year-over-year basis this year (from a base exceeding $1 million in 2020) in its Telehealth and Home Healthcare Solutions segment, which is separate from performance related to its Cryptocurrency Mining and Mining Equipment segment.

ISW Holdings Ord Shs (OTCMKTS: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) 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).

 

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) most 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 18% in that timeframe. Shares of the stock have powered higher over the past month, rallying roughly 84% in that time on strong overall action.

Riot Blockchain Inc (NASDAQ:RIOT) generated sales of $2.5M, 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 26.8% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($39.1M against $1.3M).

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 ([email protected]) or his Google+ page (https://plus.google.com/u/0/116608759701551457422).

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