New industries are appearing everywhere as the 21st century starts to stretch its legs. Maybe we don’t have flying cars yet. But we do have big growth industries that didn’t exist at all 20 years ago. Autonomous vehicle AI sensors, Internet-of-Things Logistics, recreational cannabis dispensary, genetic engineering data analytics, and cryptocurrency mining equipment are a few examples.
This last one is our focus today. And the company we have in mind is perhaps the newest to emerge there: ISW Holdings Inc (OTCMKTS:ISWH), which has entered the industry by virtue of its recent joint venture partnership with Bit5ive LLC, a global top player in the space developing, running, and selling what are known as “turnkey mining solutions”.
This is really just a way of saying, “we make something that you just buy and sit on your property and start it up, and it will instantly turn your property into a fully-decked-out industrial-grade cryptocurrency mining facility, complete with energy regulators, smart temperature systems, MW processing power capacity, and management software for a full antiminer fleet to start grind out serious coin, baby!”
The JV between Bit5ive and ISWH is a big deal for ISWH shares – or at least, it should be. This is especially true given the cycle.
The Crypto Mining Cycle
In late 2017, the world was ablaze with bitcoin fever. There was so much hype and FOMO panic that it spawned trusts, gobs of new sites, gobs of new coins, and even two futures markets. That last part helped to finally nail the coffin shut on the bubble-pop process.
But, somewhere along the way, everyone and their mothers and brothers were interested in mining crypto. If you broke into your neighbor’s barn in Kansas, you would no doubt find a couple moleminers hooked up to a surge protector extension cord next to the goat pen.
With all that equipment in demand, the main producers were operating at high capacity and new mining machine producers were popping up weekly.
As you can imagine, after the crash that all changed.
By the summer of 2018, Cletus had the moleminers on Ebay and the producers were either out of business or pulling way back. So, the coin fell hard in pricing, and the market filled up with second-hand equipment.
Then a couple years passed.
Now, here we are in more enlightened times. Cletus has sold his machines – which have been phased out anyways, so it really doesn’t matter. What matters is that the deals are flowing again. The product cycle has moved on as well. So, the producers are starting to get fired up.
And, now, for all intents and purposes, that includes ISWH. It’s time to shine.
The Path Ahead
Besides its considerable operations in the home healthcare space, where the company has posted five straight quarters of double-digit percentage growth on a sequential quarterly basis (which is huge), the next major source of topline growth appears to be its crypto and data center business.
We would imagine this proceeds in a step-wise process that leads to marketing and sales of the “Pods” that it has discussed, and that Bit5ive understands so well.
The turnkey crypto mining solutions revolution is upon us. And it couldn’t come at a more interesting time for this emerging industry – when the overall mining equipment space is looking more and more like it stands in the very early innings of a long-term growth cycle driving by product cycles, depleted supplies in secondary markets, under-revved production rates, and rapidly growing demand.
It may well be the case that ISW Holdings Inc (OTCMKTS:ISWH) got into this game at precisely the right time.