A 4-digit ad – Some investors are increasingly valuing companies that diversify their activities by embarking on the mining of bitcoin (BTC). This Thai company has benefited greatly from this confidence, which is however only based on mining on a relatively modest scale.
Jasmine Technology’s shares: a crazy 8 BTC bet
The stock price of the Thai tech company, Jasmine Technology, at checked in an increase of 6,700%, since the company revealed at the end of July 2021, its bitcoin mining unit. Jasmine Technology has yet mined as 8 BTC until today, with its 325 mining machines. The strong growth in the value of the company’s shares is therefore rather due to investor optimism, anticipating high profits from bitcoin mining in the future.
“The strong reaction from investors has exceeded our expectations. There is bullish optimism towards our new leadership, even if this is only the beginning. “
Soraj Asavaprapha, President of Jasmine Technology
Asavaprapha, however, plans to invest 3.3 billion baht, or about 98 million dollars, to acquire no less than 7,000 mining machines. He believes that “mining revenues will represent around 80% of the company’s total turnover by the end of 2022 ”.
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What profitability for bitcoin mining in Thailand in 2022?
Are Jasmine Technology shareholders right to be so optimistic about this bitcoin mining project? Bitcoin mining is relatively recent in Thailand and is exposed to regulatory risks. In particular, the Bank of Thailand plans to publish detailed rules governing digital assets.
Although Jasmine Technology executives believe this regulatory framework will not affect their operations, the general public ignore in reality if these new rules will be repressive and thus hamper – or not – the proper functioning of the Jasmine Technology mining unit.
Bitcoin mining necessarily entails significant challenges in terms of energy management for the countries concerned. Countries like Iran have had to ban mining during certain periods in order to avoid blackouts.
Have Jasmine Technology shareholders also taken into account the risks of a drop in the profitability of mining in 2022, once the markets enter a bearish phase during this cycle?
Jasmine Technology is therefore betting on bitcoin, and its investors support it in this process for the moment. It generally follows – but with differences in the details of the implementation of the strategies – the way of MicroStrategy which has accumulated more than 122,000 BTC and which now plans to put this fortune to work.
Jasmine Technology shareholders therefore have faith in bitcoin, a confidence that is reflected in the impressive figures cited above. If you are also convinced of the future of bitcoin, and want to invest in it, IRegister without delay on FTX and benefit from a lifetime reduction on your trading fees (affiliate link, see conditions on official website)