The Bitcoin Rally Offers Big Support for these Stocks (OSTK, ISWH, SQ, PYPL, MARA, RIOT, BTBT)

BTC back above $50k? It’s finally a real proposition once again. That represents a one-month gain of over 65%. If you harbored any doubts about the upside potential of this asset, put them to rest – that seems to be the message blaring on the charts.

This remarkable recovery will shout at the world: the fervor around Bitcoin that we saw earlier this year appears now to be far from a “fluke”. 

The spike from $10k to $60k from October 2020 to April 2021 was portrayed by many skeptics as a freakish aberration to be corrected back entirely as reality set in. Now, here we are: BTC was at $50k six months ago; it’s at $50k today. 

Experts continue to contend that it could be much higher a year out as adoption and institutional acceptance build steam – a picture that has enormous implications for stocks in the space such as Overstock.com Inc (NASDAQ:OSTK), ISW Holdings (OTC US:ISWH), Square Inc (NYSE:SQ), Paypal Holdings Inc (NASDAQ:PYPL), Marathon Digital Holdings Inc (NASDAQ:MARA), Riot Blockchain Inc (NASDAQ:RIOT), and Bit Digital Inc (NASDAQ:BTBT).

We take a closer look here at some of the more interesting recent catalysts among key Bitcoin stocks.

 

Overstock.com Inc (NASDAQ:OSTK) bills itself as a company that operates online shopping commercial site. It also sells these products through www.overstock.com, www.o.com, and www.o.biz. But its tZERO bitcoin operations are its driving factor for investors at this point.

It operates through the following business segments: Retail, tZERO, and MVI. The Retail Segment engages in e-commerce sales through its website. The tZERO Segment focuses on securities transaction through its broker-dealers. The MVI segment consists of the Medici business. 

Overstock.com Inc (NASDAQ:OSTK) recently announced that its Board of Directors has approved a stock repurchase program of up to $100 million of its outstanding common stock. This repurchase program is designed to return value to Overstock stockholders and to help offset the dilutive impact of recent stock issuances and future employee restricted stock vesting. Overstock expects to fund repurchases through existing cash balances and cash generated from operations which have been strengthened by the company’s strong operational results.

“Today’s announcement demonstrates our confidence in our business and our ability to deliver sustainable, profitable market share growth,” said Overstock CEO Jonathan Johnson. “This share repurchase program is aligned with our commitment to strategically deploy capital where we believe we can drive the greatest value for our shareholders and underscores the strength of our balance sheet.”

The stock has suffered a bit of late, with shares of OSTK taking a hit in recent action, down about -4% over the past week. 

Overstock.com Inc (NASDAQ:OSTK) managed to rope in revenues totaling $794.5M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 1.5%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($537.7M against $371.8M).

 

ISW Holdings (OTC US:ISWH) stands to be one of the most interesting rising stars in the crypto stocks group. The company has recently formed a key partnership with Bitmain, the global leading play in the crypto space, and it has finally gotten on the board as a commercially scaling miner with even bigger prospects on the hosting side.

ISW is in the process of changing its name to “BlockQuarry”, which could have real value given the retail-investor enthusiasm that surrounds the crypto stock marketplace. 

ISW Holdings (OTC US:ISWH) announced this morning the filing of the Company’s financial performance data for the three months ended June 30, 2021, including enormous gains in cash (2,600%) and assets (2,657%), and a huge drop in derivative liabilities (96%).

“Our primary mining equipment was not installed and switched on until about two weeks before the end of Q2, so the bulk of the impact will show up in Q3 data in terms of topline numbers,” commented Alonzo Pierce, President and Chairman of ISW Holdings. “That said, we have significant equipment now running and just received another large delivery of miners, so we are now cooking at a pace of well over $5 million in annual revenues on a monthly basis, with substantial growth ahead over coming months. We are also proud of material gains in assets while dramatically reducing our liabilities, including derivative liabilities, as we implement our new shareholder friendly initiative announced several months ago.”

The company highlighted the fact that its mining operations got fully underway on a commercial level during the quarter, as well as the progress it has already made in Q3, which has been substantially more important to demonstrating tangible financial gains and the Company’s capacity to drive top and bottom-line growth. This progress has been highlighted by its recent partnerships with Bitmain Technologies and Minerset, which will provide for significant material gains in both Mining and Hosting activities.

As noted in the release, the company looks forward to further discussing its growing operations in its Southeastern US hosting sites, including total mining capacity that could reach 5.32 EH/s once all 200+ MW are active across all pod units.

ISW Holdings (OTC US:ISWH) Chief Pierce added, “We received our initial primary tranche of miners by mid-June. By June 30, we had mined only $19k. However, this was achieved with only minimal mining capacity up and running. Other minor obstacles included refitting our pods for s19’s given that the pods were designed for s17’s. Another 250 Avalon’s arrived last week, and we are now in process of installing the remaining miners needed to reach a hashrate of 54,000 TH/s, which will produce nearly 12 BTC per month, or a little over $6 million in annual revenues at current pricing. However, that doesn’t include new equipment gains on the way or our upcoming growth in hosting revenues, which should surpass $10 million per month once we fully implement the terms of our Bitmain 200 MW agreement, as recently discussed in Company communications.”

 

Paypal Holdings Inc (NASDAQ:PYPL) engages in the development of technology platform for digital payments. Its solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, and Paydiant products. The firm manages a two-sided proprietary global technology platform that links customers, which consist of both merchants and consumers, to facilitate the processing of payment transactions. 

It allows its customers to use their account for both purchase and paying for goods, as well as to transfer and withdraw funds. The firm also enables consumers to exchange funds with merchants using funding sources, which include bank account, PayPal account balance, PayPal Credit account, credit and debit card or other stored value products. It offers consumers person-to-person payment solutions through its PayPal Website and mobile application, Venmo and Xoom. The company was founded in December 1998 and is headquartered in San Jose, CA.

Paypal Holdings Inc (NASDAQ:PYPL) recently announced it will no longer charge late fees for missed payments on buy now, pay later products globally. According to the company’s release, starting October 1, new customer purchases with Pay in 4 in the United States, Pay in 3 in the United Kingdom, and Pay in 4X in France will no longer be subject to late fees – joining PayPal’s buy now, pay later solutions in Germany and Australia which do not charge late fees for missed payments. Eliminating late fees builds on PayPal’s commitment to deliver the most customer centric, global installment solution portfolio that helps meet the needs of today’s consumers and merchants.

“Building on the success of our Pay in 4 launch in Australia without late fees, we know that eliminating late fees delivers an even better buy now, pay later experience that provides incredible value to our consumers and merchant partners. We’re able to help provide consumers peace of mind as they manage their plans on their terms while also helping merchants increase sales conversions,” said Greg Lisiewski, Vice President of Global Pay Later Products at PayPal. “This change is closely coupled with PayPal’s mission and values as we seek to remove hurdles that provide financial services to customers of all types while helping our merchant partners succeed in the changing retail landscape.”

Even in light of this news, PYPL hasn’t really done much of anything over the past week, with shares logging no net movement over that period. 

Paypal Holdings Inc (NASDAQ:PYPL) managed to rope in revenues totaling $6.3B in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 21%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($12.4B against $41.3B, respectively).

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. We may be compensated for posting this content on our website by EDM Media LLC. For questions, comments or suggestions please contact ir@edm.media.

Published by Alan Masterson

Alan has over 25 years of trading experience in the U.S. equity markets. He began his career in finance working on a program trading desk specializing in over-the-counter stocks. His career progressed from that point to his current position as senior trader on an institutional trading desk. In the evenings, Alan teaches economics at a local community college. He has contributed articles to various publications over the last six years, including feature articles for an economics magazine and various financial blogs. You may contact Alan via his email (alanmasterson@wallstreetpr.com) or his Google+ page (https://plus.google.com/103338576216002376250).

Recent Stories

SignUp Now For Our Featured Newsletter