Bitcoin Stocks Snapshot (OTCQB: $INTV) (NASDAQ: $RIOT) (NASDAQ: $MARA) (NASDAQ: $COIN)
Companies Bolster Mining Capabilities as Cryptocurrencies Surge
Point Roberts, WA and Delta, BC - April 13, 2021 (Investorideas.com Newswire) Investorideas.com, a leading investor news resource covering cryptocurrency and crypto mining stocks releases a special report on the current cryptocurrency boom. As Bitcoin, Ethereum and other digital currencies are gaining, public companies are investing heavier in crypto mining and realizing positive returns.
Forbes reports, "With San Francisco-based bitcoin and cryptocurrency Coinbase eyeing a valuation that could top $90 billion when it lists on the tech-heavy Nasdaq on Wednesday April 14, the bitcoin and crypto market is braced for one of its biggest ever weeks."
Integrated Ventures Inc., (OTCQB: INTV), a company with a focus on the cryptocurrency sector is betting on a further long-term upside and is in expansion mode. The Company recently confirmed it has partnered with Wattum Management and entered into a 12-month Sales and Purchase Agreement with Bitmain Technologies Limited to acquire 4,800 Antminer model S19J (100 Th) digital currency miners.
Bitmain is scheduled to manufacture and ship miners on a monthly basis, in 12 equal batches of 400 units, starting on August 2021 and thru July 2022. Partners agreed to purchase 4,800 units, on 50/50 basis, and to pay Bitmain approximately $34,047,600 ("Total Purchase Price" or "TPP") (*).
In addition, Integrated Ventures has received (1) downside price protection and (2) right to replace S19JPro miners with new models, scheduled to be released in early 2022.
The TPP is payable as follows: (i) 25% of the TPP, upon the execution of the Sales Purchase Agreement or no later than April 19, 2021; (ii) 35% of the TPP, is due by May 30, 2021; and (iii) the remaining 40%, is due on monthly basis, starting on June 2021.
In addition to Bitmain order, the Company has purchased 150 WhatMiners, ("PO-2"), valued at $1,078,000. These miners will be installed in container facility, located in PA and managed by Wattum.
Steve Rubakh, CEO of Integrated Ventures, Inc. provided the following commentary: "The Company is very pleased to secure this large scale purchase agreement, especially during a period of scarce supply of mining hardware. Going forward, INTV is committed to deploy any raised capital for purchases of the mining equipment. This purchase effectively doubles INTV's hash rate and represents a major step in INTV's strategic growth plan, resulting in significant increase of the Company's projected revenue growth rate."
He continued: "By the end of December 2021, at minimum, the Company will own and operate over 2,000 miners. Based on BTC pricing of $60,000, the projected and unaudited mining revenues for next 12 months, once all units are connected are expected to be in range of $19,000,000 and $21,000,000 million dollars."
Riot Blockchain, Inc. (NASDAQ: RIOT), one of the leading Bitcoin mining companies in the United States, recently announced an operations update that includes an unaudited Bitcoin ("BTC") production and an unaudited BTC holdings update, through March 2021.
Production and Operations Updates:
- 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.
- On April 6, 2021, the Company bolstered its management team, appointing Megan Brooks as Chief Operating Officer and welcoming Phil McPherson as Vice President, Capital Markets and Ryan Werner as Vice President, Finance.
- On April 8, 2021, Riot announced that it had signed a definitive agreement to acquire Whinstone US, Inc. ("Whinstone"), creating a US-based industry leader in Bitcoin mining.
On April 7, 2021, Riot announced a large-scale contract for the purchase of 42,000 S19j Antminers for $138.5 million from Bitmain Technologies Limited ("Bitmain"). This purchase represents a significant step forward in Riot's strategic initiative to increase its Bitcoin mining hash rate, which is now estimated to reach approximately 5 exahash per second (EH/s) by the end of 2021, and 7.7 EH/s once fully deployed by the end of 2022. This level of growth represents a 93% increase over the Company's previously estimated committed hash rate capacity of 4.0 EH/s by October 2021.
In connection with previously announced purchase orders with Bitmain in August 2020, 2,400 S19 Pro Antminers were shipped in late March and early April 2021, and are in the process of being received at Coinmint, LLC's ("Coinmint") facility in Massena, NY. Installation of these 2,400 miners is expected to be completed by late April, and upon deployment, Riot will have a total of 16,146 Antminers in operation utilizing approximately 51 megawatts ("MW") of energy, with an estimated hash rate capacity of 1.6 EH/s.
Marathon Digital Holdings, Inc. (NASDAQ: MARA), one of the largest enterprise Bitcoin self-mining companies in North America, recently published their unaudited bitcoin ("BTC") production and miner installation updates for the first quarter, ended March 31, 2021.
Some of the Preliminary First Quarter 2021 Highlights included:
- 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
- Received approximately 10,300 S-19 Pro ASIC miners from Bitmain during the first quarter of 2021
In the first quarter of 2021, Marathon's mining fleet produced 196 newly minted bitcoins. By month, the Company's bitcoin production was as follows:
- January 2021: 50.4 BTC
- February 2021: 43.4 BTC
- March 2021: 102.3 BTC
As a result, Marathon currently holds approximately 5,134.2 BTC, including the 4,812.66 BTC the Company purchased in January 2021 for an average price of $31,168 per BTC. On March 31, 2021, the fair market value of one bitcoin was approximately $58,800, implying that the approximate fair market value of Marathon's current bitcoin holdings is $301.9 million.
As of March 31, 2021, Bitmain has delivered approximately 10,300 S-19 Pro ASIC miners to the Company's mining facility in Hardin, MT, all of which were delivered on time and as scheduled. While Marathon continues to build out its Hardin, MT mining facility and install miners, adverse weather conditions in March created temporary installation headwinds. As a result, the Company's active mining fleet at the end of the first quarter of 2021 consisted of approximately 6,800 miners, generating approximately 0.71 EH/s. New miners are being installed on a daily basis, and based on current delivery and installation schedules, Marathon continues to expect all previously purchased miners to be fully installed by the end of the first quarter of 2022.
All miners are currently expected to be installed and fully operational by March 31, 2022. At that time, Marathon's total mining fleet will consist of 103,120 miners generating approximately 10.37 EH/s. Based on current schedules, Marathon's hashrate is expected to scale as follows:
"Our business is in the midst of undergoing a substantial transformation," said Merrick Okamoto, Marathon's Chairman and CEO. "As our first quarter bitcoin production numbers indicate, we are clearly beginning to scale as new miners come online on a daily basis. In the first ten days of March, we had installed 3,000 miners at our Hardin facility before our installation schedule was impacted by adverse weather conditions. Fortunately, these delays were temporary. Bitmain's shipments have continued to arrive as scheduled, and given our team's ability to adapt to changing circumstances, we remain well positioned to continue building out our mining operations. At the start of 2021, our mining fleet consisted of 2,560 miners, generating 0.25 EH/s. By early 2022, our mining fleet will consist of 103,120 miners, generating 10.37 EH/s. That is a 4,081% increase in power in approximately one year."
The current investor interest and momentum being generated around the cryptocurrency market is exemplified best through Coinbase (NASDAQ: COIN), one of the most popular regulated cryptocurrency exchanges and depositories which is expected to be valued at more than BP this week, and is on course to make history as the first major crypto company to go public, paving the way to legitimise an industry marred with distrust from regulators and traditional investors.
Coinbase is the largest cryptocurrency exchange in the United States and lists about 50 cryptocurrencies for trading and is due to list on the Nasdaq this Wednesday, April 14th with a valuation that could run in excess of $90bn (£66bn).
It was most recently valued at $91.5bn - higher than BP's current market capitalisation of $84bn. However, that price tag is predicted to inch closer toward $100bn on Wednesday, possibly even beating that of Facebook which was valued at $104bn when it went public in 2012.
In the first three months of the year, Coinbase made $730m in profit on revenues of $1.8bn, bolstered by Bitcoin's rise. The exchange lured 13m new users in the first three months of 2021. Brian Armstrong, Coinbase's chief executive, says that the company has been profitable since 2017.
"A crypto company moving to IPO is a big milestone," said Nick Jones, CEO and Co-founder at cryptocurrency wallet Zumo. "Its moves like this that make consumers feel safer with crypto and ultimately boost confidence in the space."
As cryptocurrencies continue to gain mainstream popularity, are being utilized in more daily transactions from real estate to paying taxes, and as institutional investors invest heavier in the crypto market, the sector seems poised for aggressive growth over the next few years.
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