Bitcoin Volatility Makes Market, Creates Growth Opportunities
NEW YORK, Dec. 13, 2021 /PRNewswire/ — Investors understand that, for a variety of reasons, volatility is part-and-parcel to investing in cryptocurrencies. For Bitcoin, the most popular of all digital currencies, a finite supply and the nascency of the market are key contributors to volatility that can test a small-retail investor’s resolve. The reality is that volatility is not a bad thing—in fact, it is rather instrumental in the making of any market. A month ago, Bitcoin was setting a new record high at $68,978, leading a cryptocurrency market that topped $3 trillion in valuation for the first time. Against that backdrop, companies continue to invest and innovate, looking for ways to mine more Bitcoin and widen margins, whether it be through scale, technology or other means. ISW Holdings Inc. (OTCPK: ISWH) (Profile) is actively engaged in expansion of both its segments, as the company emerges as one of the largest mining and hosting providers in the North America digital currency space. Broadly speaking, there has been no shortfall of positive developments in the cryptocurrency sector, where companies such as Marathon Digital Holdings Inc. (NASDAQ: MARA), CleanSpark Inc. (NASDAQ: CLSK), Riot Blockchain Inc. (NASDAQ: RIOT) and Bitfarms Ltd. (NASDAQ: BITF) continue to lead the charge.
- Phase 1 of ISW Holdings’ Pod City is nearly complete as part of a larger complex that will pair 56,000 Bitcoin miners to 200 megawatts of power.
- Power and infrastructure equal revenue and cash flow that allow ISWH to utilize opportunity zones that are the center of its success.
- ISWH is actively adding to its asset base, which increased by 550 miners and generated $1.075 million during Q3.
- Once Pod City is running at full capacity, the company estimates annual revenue of almost $7 million per month via hosting contracts.
Click here to view the custom infographic of the ISW Holdings Inc. editorial.
The Problem of Power
Bitcoin miners are those people and companies that earn cryptocurrency by using computing power to solve complex algorithms to create new blocks of data that are added to the global decentralized ledger known as the blockchain. The blockchain is deemed immutable because of its decentralized nature. In the blockchain every block is dependent on every other block for continuity, meaning not one component can be changed without immediately throwing up a red flag to the rest of the blockchain.
Every crypto miner faces the same challenge: power consumption. The banks of computers solving algorithms consume massive amounts of energy to run full bore 24/7/365, which has companies looking at every possible way to contain costs. To lend some color to the expense involved, consider that, in aggregate, the Bitcoin industry uses approximately 91 terawatt-hours of electricity annually. That’s more than the entire country of Finland.
ISW Holdings Inc. (OTC: ISWH), which is in the midst of a name change to BlockQuarry, is a Nevada-based portfolio company with primary commercial-stage operations in cryptocurrency mining. The flagship asset of ISWH is its Pod City complex that, when complete, will pair 200 megawatts (MW) of power with 56,000 crypto mining rigs. In addition to running its own operations, ISWH is a hosting service that provides all the requisite equipment and know-how for clients hoping to enter the crypto mining space.
To move the project forward, ISW Holdings partnered with some of the biggest names in the business, including the world’s leading producer of cryptocurrency mining hardware and Bit5ive, a leading global cryptocurrency mining firm. ISWH partnered with Bit5ive in May 2020 to build and deliver a powerful and efficient data center pod design. The Pod4 and Pod5 datacenters, which ISWH brands as BloqPod, were the result, which explains the inaugural project’s name.
With the Pod City project making substantive progress, ISWH is generating higher revenue than last year. At this point, the company finds itself in a position where power and infrastructure equals revenue and cash flow, which allows ISW Holdings to utilize the opportunity zones that are the center of its success in hosting and mining.
Phase 1 Completion Looming
In the grand scheme of things, ISWH probably couldn’t have picked a more challenging time to construct Pod City, with the COVID-19 pandemic striking only months after the Bit5ive joint venture, causing global supply chains to grind to a halt. The BloqPods that are the lifeblood of Pod City are turnkey, bespoke 40-foot ISO modular containers that use clean, renewable energy and accommodate 1+ MW of crypto mining power each with components sourced from around the world and manufactured in America. A BloqPod has 280 Antiminer S19J machines with a capacity of 28,000 TH/s and daily potential to mine 0.1576 BTC. At $50,000 BTC, that’s $7,880 per pod per day. At 200 pods, that’s $1.58 million daily, or $575.24 million annually.
Despite all the headwinds, Pod City has moved forward at a remarkable pace, which speaks volumes about ISWH’s partners and access to infrastructure development and mining equipment. The company said earlier this month that phase 1 of the project is nearly complete: this phase constitutes the infrastructure build-out to deploy 20 MW of power to the self-contained cryptocurrency mining pods. The company is on schedule to have all 56,000 miners hooked up to all 200 MW of power and running during Q4 2022.
In the (Opportunity) Zone
Speaking about phase 1, Larry Sossamon, president of Sossamon Construction Co. which is working with Bit5ive to build Pod City, commented that the project will “create many new jobs and new opportunities in the area.” The company looks to capitalize on federal incentives to invest in distressed areas in the United States, dubbed “opportunity zones.” The purpose is to spur economic growth and job creation in low-income communities while providing tax benefits to investors, a win-win for all involved.
To the point of governments, ISWH’s relationships with municipalities is part-and-parcel to the success of its projects. Consider that the efficiency and design of the pods overcome the three barriers to entry in the BTC mining business: equipment, storage and energy. Through partnerships with municipalities, ISWH and Bit5ive have access to low energy rates that facilitate viable operations.
Higher Revenue Reported Ahead of Pod City Launch
Developments are translating to revenue and cash flow, resources that will underscore growth in 2022 and beyond with Pod City and other hosting and mining operations. During Q3, ISWH reported revenue from operations of $1.075 million (including deferred revenues), up 2,435% on a year-over-year basis. That didn’t include a full three months of 550 new miners acquired from Minerset, 150 of which came as a result of IWSH meeting stock performance milestones. Total assets during Q3 increased 5,263% year to date to $9.56 million, while total liabilities decreased 73%, and total derivative liabilities decreased 98% to under $340,000.
Revenue and cash flow should continue to increase based upon ISWH getting more miners up and running. The company is currently running 700 miners, representing a mix of Bitmain Antminer S17s, BitMain S19 95TH/s and Canaan Avalons running in POD5 units in Pennsylvania at a site managed by Bit5ive. Based upon hashrate capacity and a three-month trailing average pricing of Bitcoin, these units have annual revenue capacity of up to $6 million.
Looking ahead, revenue at Pod City will be comprised of hosting service fees, which aren’t contingent upon cryptocurrency pricing. Once running at full capacity, the company estimates annual revenue in excess of $7 million per month, a tremendous improvement compared to current capacity with the benefit of being recurring under service contracts.
Mining for Something Better Than Gold
While Bitcoin prices ride up and escalator, activity in the cryptocurrency sector abounds. Appetite is evidenced from multiple view, including a CNBC survey showing that more than one in ten respondents are now investing in cryptocurrency. From the corporate perspective, companies are steadily pushing out news lending credence to market growth.
Marathon Digital Holdings Inc. (NASDAQ: MARA), a digital asset technology company that mines cryptocurrencies with a focus on the blockchain ecosystem and the generation of digital assets, received approximately 15,520 top-tier ASIC miners from Bitmain during November, resulting in 56,826 miners year to date with an additional 8,477 miners currently in transit. As of December 1, 2021, Marathon’s mining fleet has produced approximately 2,712.3 self-mined Bitcoin during 2021.
CleanSpark Inc. (NASDAQ: CLSK) is a sustainable Bitcoin mining and energy technology company that is solving modern energy challenges. In November, the company purchased 2,597 Antminer S19 bitcoin mining machines, in addition to 2,711 already being delivered during the month as it looked to take advantage of spot market prices. During 2021, CleanSpark deployed a fleet of approximately 12,900 latest-generation Bitcoin miners with a total hashrate of 1.3 EH/s.
Riot Blockchain Inc (NASDAQ: RIOT) focuses on mining Bitcoin and, through subsidiary Whinstone, hosting Bitcoin mining equipment for institutional clients. The company is expanding and upgrading its mining operations through industrial-scale infrastructure development and latest-generation miner procurement. In November 2021, Riot produced 466 BTC, an increase of approximately 298% over its November 2020 production of 117 BTC.
Bitfarms Ltd. (NASDAQ: BITF) is a global Bitcoin self-mining company, running vertically integrated mining operations with onsite technical repair, proprietary data analytics and company-owned electrical engineering and installation services to deliver high operational performance and uptime. Each Bitfarm facility is more than 99% powered with environmentally friendly hydropower and secured with long-term power contracts.
Back in the day when Bitcoin was trading at $1,000 or so, volatility could be devastating to a miner, but with prices now ranging from $20,000 to $50,000 and more, there is plenty of margin available, particularly for companies that have learned how to contain costs. Competition has run out most of the small players, with more stable companies jockeying for position, looking for growth opportunities owing to volatility, rather than being fearful of it.
For more information about ISW Holdings Inc., please visit ISW Holdings Inc.
NetworkNewsWire (“NNW”) is a financial news and content distribution company, one of 50+ brands within the InvestorBrandNetwork (“IBN”), that provides: (1) access to a network of wire solutions via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible; (2) article and editorial syndication to 5,000+ news outlets; (3) enhanced press release solutions to ensure maximum impact; (4) social media distribution via IBN millions of social media followers; and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience comprising investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
To receive SMS text alerts from NetworkNewsWire, text “STOCKS” to 77948 (U.S. Mobile Phones Only)
For more information, please visit: https://www.NetworkNewsWire.com
NetworkNewsWire is part of the InvestorBrandNetwork
DISCLAIMER: NetworkNewsWire (NNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with NNW or any company mentioned herein. The commentary, views and opinions expressed in this release by NNW are solely those of NNW and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable NNW and FNM for any investment decisions by their readers or subscribers. NNW and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, NNW, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.
NNW & FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and NNW and FNM undertake no obligation to update such statements.
Corporate Communications Contact:
New York, New York
FN Media Group, LLC
View original content:https://www.prnewswire.com/news-releases/bitcoin-volatility-makes-market-creates-growth-opportunities-301442612.html