Gains in Bitcoin Reignite Crypto Fever: Companies Aim to Lower Mining and Energy Costs (OTCQB: $INTV) (NASDAQ: $MARA) (NASDAQ: $RIOT) (OTC: $GBTC)
Point Roberts, WA and Delta, BC - May 14, 2019 (Investorideas.com Newswire) Investorideas.com, a global investor news source covering blockchain and cryptocurrency issues a special edition of the Crypto Corner looking at recent news and developments in the cryptocurrency sector.
As Bitcoin and other cryptocurrencies regain stability and enter a bullish phase, many crypto related companies are focusing heavily on lower mining costs and capitalizing on this renewed interest. Bitcoin prices are entering territory not seen in some time, breaking $7500 and doubling in price since mid-December.
The Crypto Corner reported yesterday, Monday, May 13th, "This rally was accompanied by a record high in trading volume for Bitcoin set on Sunday, May 12. Blockfyre founder Jonathan Habicht tweeted:
$29 Billion in $BTC volume was traded today. The previous high of $25.5 billion was set on Jan 8, 2018."
After experiencing historic growth (growing from a $7 billion market cap in January 2016 to a more than $600 billion market cap by late 2017), the cryptocurrency market has entered into a bear phase. Recovery has been strong in recent months, with Bitcoin's value increasing nearly 70% from December 2018 to May 2019, and growing Institutional interest, a low cost of mining equipment and ROI are key factors for investments at these levels.
Integrated Ventures Inc. (OTCQB: INTV), a company that engages in digital currency mining operations through manufacturing equipment; selling mining rigs, as well as developing blockchain software, recently announced the signing of a Hosting and Marketing Agreement with PetaWatt Properties, LLC. As a result, the previously contemplated transaction to acquire Erie Power, LLC has been terminated, (1) due to a need for significant capital requirements to re-start the plant and build out mining infrastructure, (2) up to a 6 month timeline for launch of mining operations, (3) a need for a significant dilution due to the recent stock pricing weakness and (4) the company's ability to secure a similar deal, in terms of power cost, without any additional investment.
On May 7, 2019, Integrated Ventures signed a three-year Agreement with PetaWatt Properties, LLC, which will allow Integrated Ventures to consolidate and streamline all mining operations (NC, PA and NJ) into one location, to eliminate the Company's lease obligations and payroll expenses and to lower its power costs by over 50%, thus greatly enhancing mining profitability and long-term viability.
In addition, Integrated Ventures intends to market PW's services to diversify its business by offering hosting and pool services via a la carte packages to third-party miners and market participants.
The company has formulated and plans to execute a 6 step plan, designed to position INTV for the next bull cycle:
- Operational Restructuring. To streamline and improve profitability of current operations, the company is switching from warehouse mining to third party hosting model, based on monthly flat fee and resulting in elimination of all major expenses such monthly lease, payroll, etc. All mining equipment (775+ rigs) is scheduled to be connected by May 30th.
- Securing Competitive Electricity Rates. By partnering with PetaWatt, Integrated Ventures will secure access to a lowest power pricing structure.
- Generating Cash Flow via Hosting & Mining Revenue Share Services. Integrated Ventures intends to generate significant revenue through reselling of hosting and revenue share services.
- Locking-In Record Low Hosting Rate. Newly secured Integrated Ventures' access to the most competitive power cost, will allow the company to utilize and market one of the most competitive hosting rates in the industry, thus driving profitability and demand for long-term hosting contracts.
- Implementing All-In-One "Plug-and-Mine" Mining Solution. Integrated Ventures will offer clients an access to best hosting and pool rates for ASIC and GPU miners, creating a "We Work" -style turn-key mining option for miners seeking a fast market entry combined with a cost effective hosting and pool space.
- Purchasing Discounted Mining Rigs from Secondary Markets. Integrated Ventures will keep costs low by purchasing equipment on the secondary market, a strategy that was not possible when the market was in its infancy.
Integrated Ventures will have reliable long-term access to inexpensive electricity through its three-year agreement with PetaWatt. Access to the low cost power is the key that will allow Integrated Ventures to mine far more profitably than most of its North American competitors and provide hosting services at the market's most competitive price point.
Marathon Patent Group, Inc. (NASDAQ:MARA) recently announced its operating results for the three months ended March 31, 2019, as published in its Form 10-Q filed today with the Securities and Exchange Commission.
Some of the key operating Results for the Quarter Ended March 31, 2019 were revenues of $230,694 during the three months ended March 31, 2019 compared to $239,967 during the three months ended March 31, 2018, operating loss improved to $984,909 (inclusive of non-cash expenses) for the quarter ended March 31, 2019 compared to an operating loss of $1.8 million (inclusive of non-cash expenses) quarter ended March 31, 2018, and the company had approximately $2 million of cash and cash equivalents.
Merrick Okamoto, Chief Executive Officer, stated, "We're pleased to show significant financial improvement on a year over year basis including significant reductions in our operating costs, While recent improvements in the price of Bitcoin is clearly beneficial to our ongoing mining operations and should benefit our financial performance in our Q2, we continue to seek potential acquisition opportunities that we deem to offer the best opportunity for appreciation for our shareholders."
Some of the highlights extracted from the March 31, 2019 quarterly consolidated financial statements were generating approximately $1.4 million in revenue on the production of 329.52 Bitcoins, 356 Bitcoin Cash, and 1,422.5 Litecoins for the quarter, a gross margin which was roughly breakeven at (4)% before depreciation and amortization despite an average Bitcoin price of $3,799 for the 2019 quarter, and a net loss of approximately $13.5 million or $0.94 per share compared to a net loss of $16.4 million or $1.35 per share in the quarter ended March 31, 2018.
Riot's fully-owned hashing power was approximately 101 Petahash as of March 31, 2019; which ranks the company among the largest publicly-listed miners of Bitcoin and the operation continues to be fully deployed with 24/7 real-time monitoring of status and profitability.
Grayscale Investments, LLC (OTC: GBTC), a global leader in digital currency asset management, recently released its 2019 Q1 Grayscale Digital Asset Investment Report, a comprehensive report that highlights investment activity and performance across the Grayscale family of products during the first three months of the year.
During the first quarter of 2019, Grayscale raised $42.7 million into its single-asset and diversified investment products, marking a 42% increase in quarter-over-quarter product inflows, with 73% of capital raised coming from institutional investors.
In conjunction with performance of the broader digital asset market, Q1 2019 marked the first positive quarterly performance for six of the ten Grayscale investment vehicles, including Grayscale Bitcoin Trust and Grayscale Digital Large Cap Fund, since the end of 2017.*
Grayscale's investment products are available to institutional and accredited individual investors through their respective private placements. Grayscale's single-asset investment products provide exposure to Bitcoin (BTC),** Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), Stellar Lumens (XLM), XRP, and Zcash (ZEC). Grayscale's diversified investment vehicle, Grayscale Digital Large Cap Fund™, provides exposure to the top digital currencies by market capitalization.
With continued quarterly financials showing an increase in capital and a decrease in losses, as well as continued crypto-currency stability, interest is growing in this sector. Companies making headways in lowering energy costs and increasing efficiencies hope to capitalize on this next phase of the crypto bull market.
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