Bloomberg is the gold standard for financial reporting and accessible analysis. When Bloomberg takes a stand, it is almost always an important threshold for the markets involved because it represents an emergent point of view.
Last week featured just such a moment for the crypto marketplace, as the financial media giant put out its view on Bitcoin. The company has been publishing a monthly “Crypto Outlook” report for quite a while that covers key events and developments in the crypto realm with an eye on how they tie into the financial market world.
The April edition of the report came out last week and featured a major proclamation: The Rising Bitcoin Adoption Tide. That was the title. And it was indicative of the views expressed.
The big news in the piece was the price target and the timeframe: BTC to $400k over the next 8 months. Yes, you read that right. At the heart of the analysis is a very rational idea: the network effect and its proverbial exponential shape.
“Money managers reluctant to cross the Rubicon and allocate at least a small portion of funds may be at risk as Bitcoin simply does more of the same, advancing in price amid unprecedented low interest rates and elevated equities.”
With that in mind, we take a look at some of the more interesting ways investors can leverage the ripple effect from the report with outsized moves in related equities, including: Riot Blockchain Inc (NASDAQ:RIOT), HIVE Blockchain Technologies Ltd (OTCMKTS:HVBTF), Exxe Group Inc (OTCMKTS:AXXA), and Marathon Patent Group Inc (NASDAQ:MARA).
Riot Blockchain Inc (NASDAQ:RIOT) holds non-controlling investments in blockchain technology companies and is one of the most readily identified on any list of stocks in the crypto space. It’s a mainstay for traders in the space at this point, and for good reason.
Shares have vaulted higher as Bitcoin has powered ahead over recent months. The company’s primary mining facility is located in Massena, New York under a colocation agreement with Coinmint.
Riot Blockchain Inc (NASDAQ:RIOT) recently announced an operations update that includes an unaudited Bitcoin production and an unaudited BTC holdings update, through March 2021.
The company posted huge gains in mining results. In March 2021, Riot produced 187 BTC, an increase of 80% over its pre-halving March 2020 production of 104 BTC. In Q1 2021, the Company produced 491 BTC, an increase of 75% over its pre-halving Q1 2020 production of 281 BTC. As of March 31, 2021, Riot holds over 1,565 BTC on its balance sheet, all of which was produced by its mining operations.
Even in light of this news, RIOT has had a rough past week of trading action, with shares sinking something like -9% 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) pulled in sales of $5.3M in its last reported quarterly financials, representing top line growth of 340.7%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($235M against $2.4M).
HIVE Blockchain Technologies Ltd (OTCMKTS:HVBTF) is a mainstay in the crypto mining investment game.
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 provided an update on its fiscal year end coin inventory as it continues to HODL coins. According to the release, as previously announced since the beginning of the calendar year 2021 HIVE has been a Holder of all mined Bitcoin and Ethereum coins and has been banking them in cold wallets.
According to management, “As at the completion of our most recently completed fiscal year ended March 31, 2021 we held over 320 Bitcoin and over 20,030 Ethereum coins. Our strategy is to continue holding coins, as we feel that it will benefit our shareholders. The dollar value of our crypto assets at fiscal year end was approximately US $60 million and cash was US $36 million.”
The stock has suffered a bit of late, with shares of HVBTF taking a hit in recent action, down about -6% over the past week. Shares of the stock have powered higher over the past month, rallying roughly 5% in that time on strong overall action.
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).
Exxe Group Inc (OTCMKTS:AXXA) is a diversified corporation focusing on acquisitions in real estate, sustainable technology, media, agribusiness, and financial services. Exxe Group is an acquisition-driven company.
While it is diversified, it has picked up big momentum in the fintech space as an exchange services operator and a focused high frequency arbitrageur through its 1Myle Ltd segment. In this role, 1Myle buys and sells alt currencies, including Bitcoin, taking advantage of price differentials.
Exxe Group Inc (OTCMKTS:AXXA) recently made a new acquisition that holds the potential to powerfully augment its market positioning. This is by far the most speculative and least expensive stock in this list, so a big jump in potential value could have huge implications, especially given the short interest that has been hiding out the name according to data from OTCshortreport.com.
In the release, the company noted that it has acquired a controlling interest in MarketMediaConnect (MMC), a digital media platform. According to materials from the release, MMC specializes in digital marketing, advertising, design, and Search Engine Optimization (SEO). The Company brings an independent client base, and a slate of high-quality digital technology assets into AXXA. MMC’s digital advertising expertise has already successfully provided services to a range of private, public, and crypto companies.
Eduard Nazmiev, Ph.D., Exxe Group’s CEO commented on MMC’s potential and how it fits into Exxe’s strategy. “We recognize the challenge tens of thousands of small sized firms face. The ability to provide them solutions helped inform our decision to acquire a controlling interest in MMC and its technologies. We will use AXXA’s contacts to expand MMC’s independent client base in the European B2B and B2C markets to boost their revenues. In addition, adding MMC to the Exxe Group family adds a critical component to AXXA’s Fintech strategy and is a great complement to the marketing of our 1Myle, E-commerce car parts, venture fund companies, and other businesses, to those respective customer bases.”
Exxe Group Inc (OTCMKTS:AXXA) managed to rope in revenues totaling $9.3M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 103.7%, as compared to year-ago data in comparable terms.
Marathon Patent Group Inc (NASDAQ:MARA) mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets.
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 published unaudited bitcoin production and miner installation updates for the first quarter, ended March 31, 2021.
During the recent period the company: Produced 196 new minted bitcoins in the first quarter of 2021, increasing total bitcoin holdings to 5,134.2 with a fair market value of approximately $301.9 million as of March 31, 2021; At March 31, 2021, cash on hand was approximately $212 million and total liquidity, defined as cash and bitcoin holdings, was approximately $513.9 million; and Received approximately 10,300 S-19 Pro ASIC miners from Bitmain during the first quarter of 2021.
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 MARA shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -11% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities.
Marathon Patent Group Inc (NASDAQ:MARA) generated sales of $2.6M, 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 216.5% on the top line. 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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