The Biden administration stepped up to the plate on Monday and expressed its desire to create a crypto regulatory authority.
We don’t have many details yet, but it appears clear that the administration is planning on introducing new pathways to getting the crypto lion under the whip. And it appears rumors related to this shift may have been at least partly responsible for the flash crash in Bitcoin over the weekend.
This caused investment vehicles in the space to stumble, including Grayscale Bitcoin Trust (OTCMKTS:GBTC), Square Inc (NYSE:SQ), and Overstock.com Inc (NASDAQ:OSTK).
However, fears related to a regulated reality for the crypto space may be extremely overdone. In fact, one can easily make the case that a regulated cryptocurrency space could actually accelerate mainstream uptake of Bitcoin as a true medium of exchange – people generally like things they can understand, and increased oversight can help make financial institutions and retailers more comfortable with dealing in BTC terms.
As such, one might benefit from having related stocks on the radar, including HIVE Blockchain Technologies Ltd (OTCMKTS:HVBTF), ISW Holdings Ord Shs (OTCMKTS:ISWH), and Marathon Patent Group Inc (NASDAQ:MARA).
HIVE Blockchain Technologies Ltd (OTCMKTS:HVBTF) 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.”
Even in light of this news, HVBTF has had a rough past week of trading action, with shares sinking something like -21% 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. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -13%.
HIVE Blockchain Technologies Ltd (OTCMKTS:HVBTF) pulled in sales of $17.9M in its last reported quarterly financials, representing top line growth of 170.4%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($20.8M against $15.4M).
ISW Holdings (OTCMKTS:ISWH) is the most speculative name on this list, but one that may deserve serious attention given its cheap per share price and its unique approach to operations in the crypto space. According to its recent communications, the company has strong and growing mining operations, capacity, and equipment deals in the works, with operations in partnership with Bit5ive in Pennsylvania and a coming footprint in Georgia.
When Bitcoin was still at $10k/coin, ISWH was engaged in a long-term strategy to drive shareholder value in the space with its POD5IVE strategy. Based on publicly available information, the company is on track for very strong growth in 2021 based on the launch and ramp-up of its crypto operations.
ISW Holdings (OTCMKTS:ISWH) conducts mining through its Proceso POD5IVE mining pod, a fully self-contained high-PUE mining solution designed, assembled, and installed in partnership with Bit5ive at the Bit5ive 100 MW renewable energy cryptocurrency mining facility in Pennsylvania.
It has since tripled its fleet of mining pods. Each pod is powered by 280 mining rigs and is capable of driving roughly $2.9 million in annualized revenues (at current cryptocurrency price levels).
ISW Holdings continues to build out its own mining capacity, with plans to bring multiple additional pods online this year. However, data from pod mining operations is also being collected for the purpose of marketing the POD5IVE datacenter to other businesses and individuals interested in a self-contained industry-leading cryptocurrency mining solution.
ISW Holdings (OTCMKTS:ISWH) also continues to make good on its Anti-Dilution Initiative, which was established in 2020. To date, the Company has reduced outstanding shares by nearly 25%, reduced authorized shares by 88% down to 60 million, and eliminated over $3.4 million (or 94%) of outstanding convertible debt. As noted in its recent corporate update, the Company anticipates at least threefold growth in topline performance in 2021 versus 2020 as its expanding crypto mining operations fully ramp up.
Marathon Patent Group Inc (NASDAQ:MARA) 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. MARA 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.
Even in light of this news, MARA has had a rough past week of trading action, with shares sinking something like -29% 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. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -17%. 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).