The main factor driving the Bitcoin bull isn’t the debasement of fiat currencies that we have seen in response to the global pandemic health and economic crisis over the past year – though that certainly has helped. But the root factor is a “network effect” process. It is the crowd seeing the crowd. It is central missionaries of the market signaling a new phase of increasing acceptance.
It is the President and Chief Operating Officer of Goldman Sachs saying GS is going to offer a product in the crypto space to its customers. It is JPMorgan coming out with a basket. It is Tesla opening its cash registers to Bitcoin buying of cars. It is Starbucks selling coffee for crypto.
And all the while, it is the big regulatory apparatus not saying so much as a peep to introduce a wrong note into this increasingly loud song of acceptance.
The contrast with how the main missionaries of the markets reacted back in 2017 is deafening. For example, in September 2017, Jamie Dimon – the head honcho at JPM – said Bitcoin was a “fraud… worse than tulip bulbs” and predicted it “isn’t going to work.” He also said that if he saw a JPMorgan trader transacting firm capital in the crypto markets, “I would fire them in a second, for two reasons: It is against our rules, and they are stupid, and both are dangerous.”
My, how the times have changed!
With that in mind, we take a look at some of the current leaders among Bitcoin stocks, including: HIVE Blockchain Technologies Ltd (OTCMKTS:HVBTF), Riot Blockchain Inc (NASDAQ:RIOT), Clikia Corp (OTCMKTS:CLKA), and Marathon Patent Group Inc (NASDAQ:MARA).
HIVE Blockchain Technologies Ltd (OTCMKTS:HVBTF) 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.
The company’s 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 an agreement to expand the footprint of its Sweden GPU mining datacenter by an immediate 2 MW, at an estimated cost of $9 million, by the end of April 2021.
According to the release, by the end of 2021 the company is planning a 30% increase in its Ethereum mining capacity. The immediate expansion of the operating footprint would be accomplished through an infrastructure re-fitting of a portion of its existing facility in Boden, Sweden at an estimated cost of US$ 250,000 and the purchase of new generation GPU chips and associated mining rigs to house them at an estimated cost of US$ 8.75 million.
While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action HVBTF shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -6% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -27%.
HIVE Blockchain Technologies Ltd (OTCMKTS:HVBTF) managed to rope in revenues totaling $17.9M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 170.4%, 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 ($20.8M against $15.4M).
Riot Blockchain Inc (NASDAQ:RIOT) is expanding and upgrading its mining operations by securing the most energy efficient miners currently available.
The company also holds certain non-controlling investments in blockchain technology companies. Riot is headquartered in Castle Rock, Colorado, and the company’s mining facility operates out of upstate New York, under a co-location hosting agreement with Coinmint.
Riot Blockchain Inc (NASDAQ:RIOT) recently announced that it will achieve an estimated hash rate capacity of 1.06 Exahash per second with the deployment of the newly received 2,002 S19 Pro Antminers.
“Exceeding 1 EH/s in hash rate capacity marks a major milestone for the Company,” said Jason Les, CEO of Riot. “While we are proud of this accomplishment, we view it as the successful completion of just one of many steps of our ongoing growth plan. Riot continues to receive and deploy next-generation miners from Bitmain and remains on schedule to more than triple our currently deployed capacity by the fourth quarter of 2021.”
Even in light of this news, RIOT has had a rough past week of trading action, with shares sinking something like -12% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way.
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).
Clikia Corp (OTCMKTS:CLKA) isn’t a crypto mining firm, but it is taking steps to align itself with the cryptocurrency theme as a merchant in the ultra-high-end luxury goods space. We include it here because it’s an example of a company with rapidly growing revenues opening up the register to bitcoin as a form of payment. That has led to big gains in similar stories in the past, so it deserves to be on the radar here.
It’s also relevant because high-end jewelry and watches have been a red-hot market, as recently reported by the head of global leader Signet Jewelers. This could be another sign of fear of currency debasement matching what we have started to see in art and high-end real estate as the wealthiest people seek to gain maximum diversification in storing the value of that wealth.
Clikia operates mainly through its Maison Luxe subsidiary, where it has seen enormous revenue growth over the past 3 quarters.
Clikia Corp (OTCMKTS:CLKA) just announced that Maison Luxe intends to accept various forms of cryptocurrencies, including Bitcoin, as a form of payment, and has applied for a BitPay account and is currently working to construct its in-house cryptocurrency wallet.
“In our view, cryptocurrencies are here to stay, and we are adjusting our protocols to allow for payments in major cryptocurrencies in the future,” noted Anil Idnani, CEO of Clikia and Founder of Maison Luxe. “This step prepares Maison Luxe for the future, where payment systems, currencies, and personal preferences will all become defined in new ways. With this step, we follow in the footsteps of many prominent brands.”
According to the release, the Company’s decision is based on in-depth analysis of contextual business conditions: The COVID-19 pandemic has presented a challenge for major central banks and sovereign fiat currency systems given the level of fiscal bridge-funding stimulus support and related debt necessary to affording the process of maintaining a viable economic foundation through the health crisis and its aftermath. At the same time, the network-effect process supporting the viability of cryptocurrencies has seemingly accelerated in important ways. As a result of these and other processes, cryptocurrencies have gained further traction as viable stores of value and mediums of exchange.
Clikia Corp (OTCMKTS:CLKA) had a breakout year in 2020, indicating that it broke above $3.5 million in sales. The company has also already indicated that it has started off this year on a pace lined up with new record results. Given the macro tailwind in the luxury goods space, that shouldn’t be surprising.
Marathon Patent Group Inc (NASDAQ:MARA) 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.
MARA also owns 2,060 advanced ASIC Bitcoin Miners at a co-hosted facility in North Dakota.
Marathon Patent Group Inc (NASDAQ:MARA) 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.
Even in light of this news, MARA has had a rough past week of trading action, with shares sinking something like -7% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way. Shares of the stock have powered higher over the past month, rallying roughly 8% in that time on strong overall action. Marathon Patent Group Inc (NASDAQ:MARA) pulled in sales of $2.6M in its last reported quarterly financials, representing top line growth of 854.2%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($143.6M against $1.4M).
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