The Crypto Space Sets Up into Year End (HVBTF, RIOT, ISWH, MARA)

The Bitcoin rally just won’t stop. We are now just a pitching wedge from $25K, and momentum is accelerating instead of tempering.

The big factor here is about legitimacy: you can suddenly use Bitcoin to pay for groceries and gasoline, thanks to PayPal. And it appears set for more growth in mainstream appeal as Tesla looks toward logging major transactions through Bitcoin in the future.

Central banks and regulators are also starting to come around. As a result, we have seen major analysts and fund managers start to go on the record with some very lofty price projections, including Guggenheim, whose top player, Scott Minerd, recently tagged a $400K Bitcoin target to the market.

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

HIVE Blockchain Technologies Ltd (OTCMKTS:HVBTF) is another name that has been running gangbusters in the space in recent action.

The company trumpets itself as a growth oriented, TSX.V-listed company building a bridge from the blockchain sector to traditional capital markets. 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 that it has entered into a non-binding, exclusive memorandum of understanding (MOU) with GPU.One Holding Inc to expand HIVE’s Canadian footprint through the potential purchase of GPU Atlantic Inc.

According to the release, pursuant to the MOU, HIVE would purchase 100% of the GPU Atlantic shares. The eventual purchase price is dependent on the negotiation of a definitive agreement, including a formal purchase agreement, and the completion of a satisfactory due diligence process.

“We are excited about this opportunity for HIVE to expand our Canadian footprint through the acquisition of this data centre campus which has access to 50 megawatts (MW) of low-cost green power in Grand Falls, New Brunswick,” said Frank Holmes, Interim Executive Chairman of HIVE. “Further, and important to building our vision, is the GPU.One team of young, skilled and proven data centre professionals with deep high density data centre build out and maintenance experience who will take on executive positions within HIVEs organization.”

And the stock has been acting well over recent days, up something like 92% 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).

Riot Blockchain Inc (NASDAQ:RIOT) may be currently the most obvious pure-play stock specializing in cryptocurrency mining with a focus on bitcoin. Riot also holds non-controlling investments in blockchain technology companies. It is also one of the most readily identified on any list of stocks in the crypto space, making it a popular stock for traders actively involved on a thematic basis.

Riot is headquartered in Castle Rock, Colorado, and 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 8 megawatt (MW) pilot project to assess the potential for higher productivity and lower cost mining opportunities in Texas. According to the release, Riot has teamed up with two leading-edge technology companies, Enigma Digital Assets AG (“Enigma”) and Lancium, LLC to launch the pilot project. The pilot project has the unique dual focus of evaluating Enigma’s next-generation immersion technology to increase mining productivity, in addition to evaluating Lancium’s Smart Response software to reduce energy costs.

“Bitcoin mining is about scale, low-cost infrastructure and ultra low-cost electricity,” stated Michael McNamara, CEO of Lancium. “Enigma’s innovative solutions appear to offer a very meaningful improvement on installed cost and productivity. Lancium’s power-ramping and trading expertise perfectly complements this by delivering an innovative solution to provide the pilot project with low-cost, optimized electricity.”

The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 16% in that timeframe.

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).

ISW Holdings Ord Shs (OTCMKTS:ISWH) partnered with Bit5ive, LLC, to design and assemble an industry-leading PUE mining pod that works as a self-containing mining solution capable of powering megawatt mining operations in plug-and-play context.

Its first prototype pod has been fully assembled and shipped to Bit5ive’s 100 MW Pennsylvania renewable energy cryptocurrency mining project. The company is also a growing player in the telehealth market, recently announcing strong q/q growth from its home and telehealth healthcare segment.

ISW Holdings Inc (OTCMKTS:ISWH) recently announced an agreement with a major noteholder whereby 60% of the current convertible debt held by the Company will be exchanged for restricted preferred equity, eliminating the majority of dilution potential from convertible debentures now carried in the Company’s books.

According to the release, the Company and its largest noteholder have agreed to exchange convertible debentures with an aggregate value of $800K for restricted Preferred B equity, thereby reducing total debt and significantly curtailing dilution potential over coming months. Management notes that the Agreement forms the basic template the Company will use in future financing rounds to prevent dilution risk from re-emerging.

“This is exactly what we wanted on behalf of our common shareholder base to demonstrate our commitment to our new anti-dilution agenda,” commented Alonzo Pierce, President and Chairman of ISW Holdings. “We recently announced that our crypto mining pod solution has been shipped to Pennsylvania to participate in Bit5ive’s 100MW crypto mining project. We also recently announced that we were canceling nearly 25% of our outstanding shares. This follows new record revenue gains in Q3 from our Home and Telehealth Healthcare segment, with over $769K in revenues in the first nine months of this year, growing at over 140%. Now, we are eliminating dilution risk proactively in collaboration with our funders and driving major improvements in the balance sheet.”

ISWH has been on a strong run over recent weeks, powering as much as 300% higher over the past month.

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) is a central play in the crypto stock space. The company is a digital asset technology company that mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets. It is also one of the mainstays for traders seeking equity exposure to the bitcoin bull market.

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 it has entered into a contract with Bitmain to purchase 10,000 Antminer S-19j Pro ASIC Miners. Under the terms of the agreement, Marathon will receive an initial batch of 6,000 S-19j Pro Miners in August 2021. The remaining 4,000 miners will be delivered in September 2021.

Marathon’s chairman and chief executive officer, Merrick Okamoto, stated, “We are pleased to have successfully completed the purchase of all ASIC Miners required to fully utilize our 100 MW data center in Hardin MT. We are now looking forward to our next phase of growth as we build out our second data center. The new facility will be powered primarily by clean, renewable power, which is not only cost-effective, but will also allow us to lower our carbon footprint. Currently, we believe the costs to operate our second facility will be similar to the industry-leading rates we have at our Hardin facility: $0.028 per kWh for power and $0.006 per kWh for hosting operations.”

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 96% to the upside on above average trading volume. 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).

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