Dan Morehead, CEO and co-chief investment officer at Pantera Capital, a blockchain hedge fund, noted this week in an emailed newsletter that Bitcoin was actually ahead of schedule toward its forecast of $115k.
Pantera’s prediction is apparently based on the stock-to-flow model, which is a way of understanding the value of an asset based on annual issuance timing. Ultimately, it derives its targets from scarcity as a function of time, which may be one of the rare ways to assign any definitive value standard to bitcoin.
In simple terms, issuance must slow over time based on its underlying programming. And price is a function of supply versus demand.
So far, the model seems to be on track, which suggests it might continue significantly higher. With that in mind, we take a look at some of the most interesting ways to participate in this trend from an equity perspective, including: Bit Digital Inc (NASDAQ:BTBT), Exxe Group Inc (OTCMKTS:AXXA), and MicroStrategy Incorporated (NASDAQ:MSTR).
Bit Digital Inc (NASDAQ:BTBT) trumpets itself as the Bitcoin company dedicated to integrating resources globally for bitcoin and bitcoin mining.
It commenced bitcoin mining in early 2020 and currently operates 2,253.5 PH/S of Bitcoin Hash Rate across the entire Bitcoin network, making it one of the largest bitcoin mining companies listed on NASDAQ.
Bit Digital Inc (NASDAQ:BTBT) most recently announced its unaudited Bitcoin production data for the month ended January 31, 2021. During the month, the company earned 424.7 bitcoins, accounting for approximately $14.8 million in revenue. As of January 31, 2021, the company held 488.5 bitcoins in treasury, versus 262.6 bitcoins as of December 31, 2021.
“Bit Digital plans to release production reports to support key milestones on a regular basis,” shared interim CEO and CFO Erke Huang. “We believe in our leadership position within the mining sector, and will strive to protect both our brand’s reputation and our stakeholders’ interests in Bit Digital.”
And the stock has been acting well over recent days, up something like 5% in that time. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -41%.
Bit Digital Inc (NASDAQ:BTBT) recently announced revenues from bitcoin mining business was $7.91 million for the quarter ended in December 2020. In that same report, the company noted that the number of bitcoins earned from bitcoin mining business was 739.51. The net loss from discontinued operations was $0.10 million on net income of $54 and earnings per share of $0.00, compared with the net loss of $3.0 million and loss per share of $0.20 for the same period last year.
Exxe Group Inc (OTCMKTS:AXXA) has a strategy based around acquiring controlling equity interests in undervalued companies and undertake an active role in improving their performance – accelerating their growth by providing both access to capital and management expertise.
The company has diversified its interests well beyond bitcoin, but it has strong exposure to the alt-currency and is also a prime candidate for a short squeeze given the massive amount of shorting going on in the name over recent weeks (according to OTCShortReport.com).
Exxe Group Inc (OTCMKTS:AXXA) recently released financial results for its third fiscal quarter ending December 31, 2020, highlighted by its acquisition of M Meditech GmbH to service the Swiss medical supplies market, the rebranding of Vinza Limited to 1Myle, repositioning 1Myle as a Bitcoin and crypto exchange services operator and a focused high-frequency arbitrageur, and its completion of all 1Myle license amendment and name registration processes with the Exchanges it is working on.
Eduard Nazmiev, Ph.D., CEO, and President of Exxe Group commented: “Exxe Group is pleased to report record total gross revenues of $23.7M and gross revenue per share of $0.048 for the first three Quarters of FY-21. Based on continued strength in the markets in which we operate AXXA is raising its FY-21 annual revenue forecast by 6% from $30.8M to $32.7M.”
Shares of AXXA have pulled back to test support at the 50-day MA. Since then, we have seen the formation of a textbook bullish ascending triangle formation that could trigger above the $0.08 level. Given the short interest that appears to be camped out in the name, the trigger of that breakout could be significant.
Exxe Group Inc (OTCMKTS:AXXA) generated $9,263,526 gross revenues in 3Q2021 surpassing the $8.2M record set in 2Q2021; a 13% sequential Quarter-over-Quarter growth. Compared to the same period last year, 3Q revenue increased 103% from $4,547,502. Net income for the period was $2,390,875 as compared to net income of $147,272 in 3Q2020, an increase of 1,523%.
MicroStrategy Incorporated (NASDAQ:MSTR) provides modern analytics on an open, comprehensive enterprise platform used by many of the world’s most admired brands in the Fortune Global 500.
Optimized for cloud and on-premises deployments, the platform features HyperIntelligence, a breakthrough technology that overlays actionable enterprise data on popular business applications to help users make smarter, faster decisions.
MicroStrategy Incorporated (NASDAQ:MSTR) recently announced that it had purchased an additional approximately 19,452 bitcoins for approximately $1.026 billion in cash at an average price of approximately $52,765 per bitcoin, inclusive of fees and expenses. According to the release, as of February 24, 2021, the Company holds an aggregate of approximately 90,531 bitcoins, which were acquired at an aggregate purchase price of approximately $2.171 billion and an average purchase price of approximately $23,985 per bitcoin, inclusive of fees and expenses.
“The Company remains focused on our two corporate strategies of growing our enterprise analytics software business and acquiring and holding bitcoin,” said Michael J. Saylor, CEO, MicroStrategy Incorporated. “The company now holds over 90,000 bitcoins, reaffirming our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, can serve as a dependable store of value. We will continue to pursue our strategy of acquiring bitcoin with excess cash and we may from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin.”
Even in light of this news, MSTR hasn’t really done much of anything over the past week, with shares logging no net movement over that period. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -24%. MicroStrategy Incorporated (NASDAQ:MSTR) generated sales of $131.3M, 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 3.1% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($60.8M against $285.6M, respectively).