The Evergrande Bitcoin Opportunity Could be Tasty for Nimble Traders (MARA, ISWH, RIOT, HIVE, CAN, OSTK, MSTR)

As default apparently looms for Chinese property mega-lender Evergrande, risk assets around the world are taking a beating and the dollar is rallying higher.

It’s a classic risk-off flight to liquidity, and it’s hitting everything from small-cap stocks to the Aussie dollar to Bitcoin. This is a rerun from a thousand such moments in financial history. And, just like those prior instances, it most likely represents an opportunity to get involved in the best secular trends as they dip.

One of the most important opportunities in this particular mess could be Bitcoin, and particularly, Bitcoin stocks.

Bitcoin has fallen over 15% this week, touching $40k support and toying with its key 200-day and 50-day moving averages in the Bitcoin futures market. This dip likely represents cash being pulled out to maintain leverage standards across portfolios. In other words, it isn’t a fundamental shift in the growth prospects for cryptocurrency-based assets.

As such, it may well represent an important opportunity to establish fresh interest in the space. With that in mind, we present a handful of interesting stocks with strong ties to Bitcoin and the Cryptocurrency theme, as well as some recent catalysts driving the action.

Marathon Digital Holdings Inc (NASDAQ:MARA) is one of the most recognizable names in the crypto mining space at this point.

The company bills itself as a digital asset technology player that engages in mining cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets. 

Marathon Digital Holdings Inc (NASDAQ:MARA) recently announced an expanded collaboration with NYDIG, a leading technology and financial services firm dedicated to Bitcoin, to provide members of Marathon’s Bitcoin mining pool, MaraPool, with seamless access to NYDIG’s comprehensive and institutional-grade services for Bitcoin miners.

“NYDIG has been an important collaborator of ours, providing a variety of treasury management and trading services, including facilitation of the purchase of 4,812.66 bitcoins in January,” said Fred Thiel, Marathon’s CEO. “NYDIG’s team shares our passion for professionalizing and institutionalizing the Bitcoin mining industry in the U.S., and by collaborating with NYDIG on our mining pool, we have enabled all members of our pool to have access to the same world class solutions and expertise from which Marathon has benefitted.”

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

Marathon Digital Holdings Inc (NASDAQ:MARA) managed to rope in revenues totaling $29.3M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 10146.6%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($366.5M against $3.3M).

ISW Holdings (OTC US:ISWH) is the new hot momentum play in the crypto space. The stock is a rocket right now, trading with huge upside mojo, rallying over 200% in September alone, and over 1,000% in the past four months. This powerful action follows the company’s landmark partnership agreement with Bitmain Technologies as it establishes a rapidly growing footprint in both hosting and mining coins.

ISWH – which recently filed for a name and ticker change to “BlockQuarry” – frames itself as an emerging leader with a growing commitment to blockchain infrastructure, cryptocurrency mining, and collaborative hosting. It has partnerships with Bit5ive, Minerset, and the global leader, Bitmain Technologies.

ISW Holdings (OTC US:ISWH) provided a new update this morning that could further fan the flames. According to its release, its Pennsylvania mining operations are nearing full capacity on hashrate to push performance up to peak potential which will fuel an overall monthly revenue run rate of $1.5 million at current cryptocurrency pricing.

Management also noted that it conducted site visits to its primary Southeastern US cryptocurrency mining hosting site earlier in the week. Based on that visit, the project is on schedule and the Company believes it will meet its approximate target for deploying the first 20 megawatts of power at the site around the end of October. This will begin the process of scaling up hosting operations to the full 200 MW that the project is designed to deploy to the Company’s hosting clientele.

“We will unquestionably log our best quarter in Company history – by a wide margin – when the books close at the end of the month,” noted Alonzo Pierce, ISWH CEO. “But that will likely be dwarfed by what rolls in over coming quarters. We have made a few final adjustments and updates that are being implemented right now that will take us to full capacity in terms of achievable hashrate in Pennsylvania. That will bring us to a topline run-rate of approximately $1.5 million per month, which may double again beginning midway through the fourth quarter as we begin to ramp up hosting revenues.”

ISW Holdings (OTC US:ISWH) said in its release that it anticipates a breakout record quarter for the three months ending September 30, 2021. However, it also noted that its results next quarter should be a much more significant breakout in financial terms given that it will be the first quarter featuring a full three months of mining at peak capacity as well as the start of revenues from hosting operations. In other words, the company appears to be riding an exponential growth curve, which accounts for the parabolic move evident on its chart.

Riot Blockchain Inc (NASDAQ:RIOT) focuses on mining Bitcoin, and through Whinstone, its subsidiary, hosting Bitcoin mining equipment for institutional clients. 

The Company is expanding and upgrading its mining operations through industrial-scale infrastructure development and latest-generation miner procurement. Riot is headquartered in Castle Rock, Colorado, and the Whinstone Facility operates out of Rockdale, Texas. The Company also has mining equipment operating in upstate New York under a co-location hosting agreement with Coinmint, LLC.

Riot Blockchain Inc (NASDAQ:RIOT) recently announced its August production and operations updates, including its unaudited Bitcoin production for August 2021 and its miner deployment status.

According to its release, in August 2021, Riot produced 441 BTC, an increase of approximately 451% over its August 2020 production of 80 BTC. Year to date through August 2021, the Company produced a total of 2,051 BTC, an increase of approximately 221% over its production during the same 2020 period of 639 BTC. As of August 31, 2021, Riot held approximately 3,128 BTC, all of which were produced by its self-mining operations. The Company currently has a deployed fleet of approximately 22,050 miners, with a hash rate capacity of 2.2 EH/s.

The stock has suffered a bit of late, with shares of RIOT taking a hit in recent action, down about -5% over the past week. 

Riot Blockchain Inc (NASDAQ:RIOT) managed to rope in revenues totaling $34.3M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 1668.7%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($220.2M against $37.5M).

Other core stocks in the Cryptocurrency and Bitcoin space include HIVE Blockchain Technologies Ltd (NASDAQ:HIVE), Canaan Inc – ADR (NASDAQ:CAN), Overstock.com Inc (NASDAQ:OSTK), and MicroStrategy Incorporated (NASDAQ:MSTR).

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).

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