Bank Of America Calls Bitcoin 'Impractical,' And Crypto Community Has A Lot To Say About That

Bank Of America Calls Bitcoin ‘Impractical,’ And Crypto Community Has A Lot To Say About That

InvestorPlace

Crypto mining stocks have become fashionable lately, especially since they are generally seen as a substitute for owning cryptocurrency. So, instead of buying Bitcoin (CCC:BTC-USD) or Ethereum (CCC-ETH-USD), you can buy a crypto mining stock in the same way people buy gold mining stocks. They see those as an alternative to owning gold. One reason for this is the companies make revenue and have the ability to generate profits. Owning a cryptocurrency does not guarantee you any kind of revenue. Another reason is that a number of these crypto mining stocks have begun holding as well as buying their underlying cryptos. In the case of Marathon Digital Holdings (NASDAQ:MARA), the company does not convert its mined cryptos into dollars. It simply holds them on their balance sheet. A third reason is that a number of these companies now have very high gross margins. These windfall profits are due to a wide gulf between the costs of mining, even with heavy electricity costs and high hash rates, and the much higher price of Bitcoin and other cryptos. For example, some of these crypto miners have secured very favorable long-term electricity contracts with their local energy providers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 7 Retail Stocks That Are Far Too Close to Failing Therefore, the following four crypto mining stocks are worth considering. Here is the list: Riot Blockchain (NASDAQ:RIOT) Hive Blockchain Technologies (OTCMTKS:HVBTF) Hut 8 Mining Corp (OTCMKTS:HUTMF) Bit Digital (NASDAQ:BTBT) Let’s dive into these stocks. Crypto Mining Stocks To Buy Now: Riot Blockchain (RIOT) Source: Shutterstock Market Capitalization: $4.25 billion Riot Blockchain is a digital currency mining company based in Castle Rock, CO, but its mining operations are in upstate New York. It also buys and sells digital currencies, and provides accounting, audit, and verification services for blockchain-based assets. Riot recently jacked up its mining capacity so that it can achieve an estimated hash rate capacity of 1.06 Exahash per second (EH/s). That is equal to one quintillion hashes per second, a number with 18 zeros behind the 1, or 1 billion billion hashes per second. In addition, with additional application-specific (ASIC) mining rigs, made specifically for Bitcoin mining, the company expects to reach 3.8 EH/s by October 2021. This should make it the largest or close to the largest Bitcoin miners in the world. Riot Blockchain just released its earnings update for 2020 on March 15. It produced 1,005 Bitcoin in 2020, and by February had produced 179 Bitcoins, 43% higher than Jan. 2021. This puts it on a run-rate, which is likely higher now, of 2,148 Bitcoins, or 113.7% higher than 2020. Let’s assume a price of $58,000 per Bitcoin. That equates to a run-rate revenue of $124.58 million. Therefore, assuming it reaches a run rate of 250 BTC per month by October 2021, its revenue rate will be $14.50 million per month, or $174 million annually. As the company claims it will reach 4 EH/s by the end of the year, this could mean a substantially higher level. The earnings update did not release profit numbers, but we can assume that by the end of the first quarter of 2021, the company will be making significant profits. My estimate is that that it will make 90% gross margins. I suspect that the stock has the ability to at least double from here, as long as Bitcoin continues to provide huge windfall profits to Riot. HIVE Blockchain Technologies (HVBTF) Source: Shutterstock Market Cap: $1.3 billion Hive Blockchain is a Vancouver-based crypto mining company with operations in Canada, Sweden, and Iceland. The company produced earnings for its latest quarter ending Dec. 31 on March 2, showing that it generated $13.7 million. It mines both Ethereum (in Sweden and Iceland) and Bitcoin and has gross margins of 77%. Hive Blockchain makes about 20,000 Ether coins per quarter, which at today’s rate of about $1,800 per Ether, equals $36 million. That puts it on an annualized run rate of $144 million in revenue. At its $1.3 billion market cap, that puts Hive stock at about 9 times revenue. 7 Stocks to Buy No Matter What the Treasury Yield Does Hive also announced a $100 million At-the-Market (ATM) equity capital raise, which it will use to repay debt and for corporate purposes. Look for the stock, which is also listed in Canada, to continue to move higher, as it is up about 100% year-to-date, especially as Ethereum rises. Hut 8 Mining Corp (HUTMF) Source: Shutterstock Market Cap: $962 million Hut 8 Mining stock is up about 173% year-to-date, not only because it is a profitable Bitcoin miner but also because it has a big Bitcoin portfolio. The company will announce its earnings results on Mar. 25 for the year ending Dec. 31. Hut 8 says it has one of the highest installed mining capacities in its class. It also says on its website that it has one of the highest installed capacity rates in the industry. It claims to be among the “top 5 largest holders of self-mined Bitcoin of publicly-traded companies in the world.” A recent research report in Seeking Alpha on Hut 8 says it had, as of January 2021, 3,000 Bitcoins in its treasury. At $58,000 per BTC that equals $174 million. The company also says that it has raised $100 million in equity capital. The report in January said that Hut 8 stock was undervalued at the time. A new CEO and two new directors joined the company in November. The report said that the company had operations capable of producing 3.73 Bitcoin per day or 1,358 per year. At $58,000 per Bitcoin, that works out to revenue of about $78 million annually. It’s too early to determine what the company’s profitability really is, on an ongoing basis, without further information. Investors should read its March 25 earnings release carefully to see what its future value could become. However, I expect this to be an extremely positive report, so be prepared to see the stock move higher. Bit Digital (BTBT) Source: biggunsband / Shutterstock.com Market Cap: $822.6 million This is a relatively unknown U.S. and Chinese digital currency miner, but some analysts like this Bitcoin miner the most. For example, a recent Seeking Alpha report on March 10, indicates that it trades at a huge discount on a price-to-sales ratio compared to other miners. In addition, the company was producing 424.7 Bitcoins per month as of January. At $58,000 per BTC, that works out to $24.59 million, or $295.1 million annually. Given its $822.6 million market cap, this puts it roughly at a 3 times run-rate sales. The company has not yet produced its earnings for 2020, so look for more information from the company in order to determine its long-term value. But right now, with this information about its January operations, look for the stock to at least double, if not triple once the market realizes what its comp value is worth. But do be aware that the company recently released a press statement which it said it was providing in response to false allegations about the company’s operations. This may be referring to a Seeking Alpha report in April 2020 (back when the company was known as Golden Bull Limited) citing questionable practices at the company. As always, buyer beware. These crypto mining stocks provide good exposure to digital currencies without having to buy the cryptos themselves. As Bitcoin and Ethereum hit peak prices, these companies are now making superior windfall gross margins, especially compared to their history. 7 Cheap Stocks Under $10 Several of them have raised enough cash to be able to fund their operations with their cash assets, which allows them to keep the Bitcoin they have mined as long-term marketable securities on their balance sheet. This provides an additional upside leveraged exposure into digital currencies for investors. On the date of publication, Mark R. Hake held a long position in Marathon Digital Holdings (MARA). Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post 4 Crypto Mining Stocks To Buy Now To Gain Exposure to Cryptocurrencies appeared first on InvestorPlace.

The Crypto Daily – Movers and Shakers – March 21st, 2021

A bearish start to the day saw Bitcoin fall to an early morning intraday low $57,800.0 before making a move.

Steering clear of the first major support level at $56,391 Bitcoin rallied to an early afternoon intraday high $60,000.0.

Bitcoin broke through the first major resistance level at $59,594 before Sliding back to end the day at sub-$58,100 levels.

The near-term bullish trend remained intact supported by last Sunday’s new swing hi $61,699.0. For the bears, Bitcoin would need to slide through the 62% FIB of $26,041 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Saturday.

Ripple’s XRP jumped by 12.62% to lead the way on the day.

Binance Coin (+0.47%) and Litecoin (+0.14%) also joined Bitcoin in the green.

It was a bearish day for the rest of the majors, however.

Cardano’s ADA slid by 7.33% to lead the way down.

Bitcoin Cash SV (-4.63%), Chainlink (-0.62%), Crypto.com Coin (-3.12%), Ethereum (-0.14%), and Polkadot (-2.59%) also saw red.

In the current week, the crypto total market fell to a Tuesday low $1,593bn before rising to a Saturday high $1,839bn. At the time of writing, the total market cap stood at $1,749bn.

Bitcoin’s dominance rose to a Monday high 63.03% before falling to a Saturday low 60.83%. At the time of writing, Bitcoin’s dominance stood at 61.72%.

Crypto.com Inks Global Partnership With Visa: What’s Next?

Bloomberg

(Bloomberg) – The British economy’s worst moments in the coronavirus crisis are hopefully behind it, and hints of that thesis coming true might emerge in reports due this week.The first expansion of U.K. services for five months, a partial rebound of retail sales and the fastest inflation since July are just some of the outcomes anticipated by economists in a slew of data for the most recent periods available in the current quarter. In a reminder of the damage caused, unemployment may also have reached the highest since 2015.A fledgling pickup could lay the foundations for a reversal in Britain’s fortunes following what Bloomberg Economics describes as a nadir for output in January. After one of the world’s most successful vaccination rollouts, with more than half of adults now jabbed, the next quarter will feature gradual reopenings allowing such a revival to take hold.How the economy proceeds from there remains a matter of suspense for citizens and policy makers alike. At its decision last week, the Bank of England contained any sense of optimism by saying the outlook remains unusually uncertain. Its chief economist, Andy Haldane, was bolder: he declared that “we are in for a rapid-fire recovery.”One shadow remaining over Britain’s prospects is its ability to reestablish trading relationships disrupted by its exit from the European Union. An agreement with the U.S. would help there, and that’s just what Trade Representative Katherine Tai, and her U.K. counterpart Liz Truss, will discuss in a call on Monday.What Bloomberg Economics Says:“Looking beyond the first quarter, we continue to forecast U.K. growth will pick up sharply as the economy reaps the benefits of looser restrictions and the vaccine rollout program. Our baseline view is that the economy reaches its pre-virus level in the second quarter of 2022.”–Dan Hanson, senior economist. For a full analysis, click hereElsewhere, U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell testify to Congress and global policy makers including European Central Bank President Christine Lagarde, BOE Governor Andrew Bailey and Bank of Canada chief Tiff Macklem discuss central bank innovation at a four-day conference organized by the Bank for International Settlements. Meanwhile, at least 15 rate decisions – including Mexico, South Africa and Switzerland – are scheduled.Click here for what happened last week and below is our wrap of what is coming up in the global economy.U.S. and CanadaInvestors will be watching as Yellen and Powell testify before the House Financial Services Committee on Tuesday and the Senate Banking Committee on Wednesday for quarterly Cares Act hearings, during which they will likely discuss the state of the U.S. economy and the role of fiscal and monetary aid in the pandemic recovery.On the data front, new and existing home sales as well as personal income and spending figures will probably show weakness, due to the impact of inclement winter weather on economic activity in February. Economists expect the slump to be short-lived. The Bureau of Economic Analysis will also release it’s latest revision of fourth quarter 2020 GDP, which was last reported at an annualized 4.1%.For more, read Bloomberg Economics’ full Week Ahead for the U.S.Europe, Middle East, AfricaMore upbeat flash PMIs and German Ifo confidence numbers may not be enough to distract from Europe’s chaotic vaccine rollout, which is likely to be a topic of a summit of European Union leaders.ECB officials including Chief Economist Philip Lane and Vice President Luis de Guindons speak throughout the week and may reiterate Lagarde’s mantra that euro-area governments must make sure to roll out their joint spending plan on time to ensure the region’s recovery from the coronavirus pandemic.Switzerland’s central bank will publish its 2020 currency intervention tally and conduct the first rate decision of the year, with officials expected to maintain current policy settings with the world’s lowest interest rate.Counterparts in Hungary, Iceland, the Czech Republic and Morocco are also expected keep their monetary stance unchanged.That’s likely to be the case too across Africa, where Ghana’s central bank will probably hold its key interest rate for a sixth straight meeting on Monday as it monitors how new tax measures and higher utility fees affect inflation. In Nigeria, policy makers are likely to also keep the key rate unchanged, even with inflation at a four-year high.South Africa’s central bank, which has signaled interest-rate hikes later this year, will probably refrain from doing that already on Thursday as the economy’s recovery from its biggest contraction in a century remains fragile.Meanwhile, investors will be keeping a close eye on Turkey, where two days after a bigger-than-expected increase in interest rates, President Recep Tayyip Erdogan removed the country’s third central bank governor in less than two years, and replaced him with an advocate of lower rates.For more, read Bloomberg Economics’ full Week Ahead for EMEAAsiaSouth Korea kicks off the week with early trade data for March that should offer a clearer sign of how global trade is recovering without the distortions of the previous two months.The Tokyo region is set to emerge from its state of emergency this week. Preliminary PMI data for March out Wednesday will give an indication of recent activity in Japan’s manufacturing and service sectors, while early inflation figures from the capital will also show the likely direction of nationwide prices.China is likely to leave its loan prime rate unchanged on Monday, Thailand sets interest rates on Wednesday and the Philippines central bank meets Thursday.For more, read Bloomberg Economics’ full Week Ahead for AsiaLatin AmericaBrazil serves up the minutes of last week’s interest rate meeting, the mid-month reading on consumer prices and the central bank’s quarterly inflation report. The likely takeaway: the suddenly hawkish central bank hopes to front-load a tightening cycle that both brings above-target inflation to heel and spares an unsteady and challenged recovery.Banco de Mexico’s situation on Thursday is more nuanced. In the lead up, the bi-weekly reading of consumer prices will creep closer to the top of the target range while data on unemployment, retail sales and economic activity will underscore the lack of domestic demand. The central bank’s own forecast – that inflation will breach the top of the target range in the second quarter before slowing – may persuade the conservative Banxico to hold at 4% this month.Rounding out the week, Argentina reports full-year and fourth-quarter output on Tuesday while Colombia’s central bank on Friday will all but certainly keep its key rate at a record-low 1.75%.For more, read Bloomberg Economics’ full Week Ahead for Latin AmericaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.