Through a peculiar conspiracy of micro and macro events, ISW Holdings Inc (OTCMKTS:ISWH) is a small-cap sitting with a particularly interesting level of potential prepotency in the grand scheme right now, as we will outline below.
If you haven’t noticed, everything that represents a bad symptomology for the US Dollar has been doing very well this year. Gold, the Euro, Bitcoin, Copper, Silver. Everything is doing quite well that normally depends upon a weak dollar for performance.
If you want to know why this is happening, you need look no further than the historic volatility and money printing we are seeing, in tandem, right now due to the world’s confrontation with a growing health crisis, beginning in China as early as late 2019. The virus has crippled the global economy by forcing policymakers to save lives by adding monetary and fiscal stimulus as a bridge while shutting down many basic aspects of normal economic life.
This has come even as debt around the world had already surged to unprecedented levels before the pandemic got its claws dug into the narrative.
In addition, after a decade of historic QE moves by the developed world’s central banks, the USD started falling earlier this year. That pushes several investment themes to the forefront. When you line them up with absolute growth potential, perhaps the most dramatic of these is that one may find in the cryptocurrency space.
With that in mind, we turn our attention to ISW Holdings Inc (OTCMKTS:ISWH), a company with strong home healthcare operations that has recently expanded into the crypto space. As we argue below, this small player may actually come to represent one of the soundest opportunities for new equities investors looking for exposure in the mining equipment space around the corner.
Recent research from analyst firm “Research Nester”, a leading service provider for strategic market research and consulting, projects powerful growth ahead in the global cryptocurrency mining equipment market.
The topline highlights of the research published this month represent the latest broad-based analysis in the crypto mining equipment marketplace and suggest that the space will flourish at a CAGR of 17.5% over the better part of the next decade.
According to the research, increasing usage of cryptocurrency by retailers is anticipated to drive the growth of the global cryptocurrency mining equipment market over the forecast period. Moreover, rising technological advancement in GPUs (Graphics Processing Units) and ASICs (Application Specific Integrated Circuits) is expected to increase the overall market of cryptocurrency mining equipment through 2027.
The space is segmented, with categories including self-mining, cloud mining services, remote hosting services, and other niches.
The cloud mining services segment is expected to grow at highest CAGR in overall global cryptocurrency mining equipment market during the forecast period, according to the report.
Increasing adoption of cryptocurrency mining services is believed to positively drive the growth of the cloud mining services segment over the upcoming years.
In all of these conclusions is threaded two core concepts: first, that we will simply see more utility for cryptocurrencies as alternative forms of legitimate payment, and second, that the cycle has turned in the space, with the oversupply of prior-generation models now worked off, leading to escalating demand for new, better, and more equipment that will replace itself rapidly on a period-over-period basis.
While the impact on coin prices is less certain, barring a new crash in the coins, the demand curve for crypto mining machinery should be less volatile, with a steady force driving demand.
Yet, there are few companies positioned to focus on this need with specific solutions tailored to end-users and core points of demand. And the ones that already sit in the space are potentially overvalued in the equities market given the parabolic run higher in large-cap technology.
If we exclude the large-cap Nasdaq mega-tech companies from the list, then where should investors turn to take advantage of this trend?
ISW Ramps Up in Crypto
ISW Holdings Inc (OTCMKTS:ISWH) is a diversified holdings company that has exposure across a number of different industries, including renewable energy, supply chain logistics, home healthcare, adult beverages, and the wellness industry.
However, the company has now moved robustly into the cryptocurrency space as a provider of crypto mining equipment via a groundbreaking new joint venture announcement that hit the newswires in May. Specifically, ISW Holdings just announced its entrance into a new venture with Bit5ive LLC, a global leader in cryptocurrency mining and innovative turnkey mining solutions.
“We are incredibly excited to expand our current portfolio and move into what we believe is a sector poised for strong technological and financial growth,” stated ISW Holdings President and Chairman Alonzo Pierce. “This new joint-venture agreement enables us to collaborate with the experienced team at Bit5ive to innovate the infrastructure needed to run profitable, efficient crypto mining projects, and to take advantage of the incredible growth projected for the crypto market.”
To understand the importance of this shift, it is necessary to understand Bit5ive’s key role in the industry.
While Bit5ive is one of the most explosive distribution points for leading mining equipment, the company is not accessible to investors in any publicly traded form. In fact, at this point, ISWH is likely now the best avenue to gain exposure.
Bit5ive is an official distribution partner of Bitmain, the industry-leading fabless manufacturer of computing chips and distributor of Antminers to more than 30 countries in Latin America, Central America, and the Caribbean. In addition, Bit5ive is the producer and distributor of POD5 and Power Skid 2.5, the most efficient and successful infrastructure for crypto mining hardware.
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