Back in the California Gold Rush of the 1850s, over 750,000 pounds of gold (worth just over$1.4 billion) was discovered.
That sounds like a lot – but as we all know the way to strike it rich back then wasn’t to find gold but to supply the frenzied miners in search of their fortunes.
The California Gold Rush saw huge fortunes made, but it wasn’t from gold discoveries…
- Levi Straus
- Phillip Armour
- Wells Fargo
They were all founded during the 1850s gold rush and went on to make their founders rich.
Today, a similar “gold rush” is happening, this time in digital cryptocurrencies (bitcoin, ethereum, etc…). And the boom may have only just begun…
And just like in the California Gold Rush, there are under-the-radar crypto players that stand to benefit even if they don’t actually mine bitcoins.
So, BLI dove in, and found 2 under-the-radar crypto stocks you’ve probably never heard of.
P.S. Last year, one technology expert made a shocking prediction about Bitcoin and what it means for the real future of money. Click here to see what he thinks is about to happen.
#1 Under-the-Radar Stock #1: Canaan
Canaan is a Chinese bitcoin mining device maker, that had disappointing third-quarter results being blamed on COVID-19.
The stock was up in excess of 150% in the past month and it slumped 13% on Monday the 20th of November, as reported revenue free fell 76% year over year to $24 million. And the company booked a net loss of $12.7 million.
Management stated that demand is returning for its equipment and presales are on the uptick for the fourth quarter after it dumped old inventory on the cheap.
“Current orders with Canaan won’t ship until April due to the high demand for ASIC miners.” Thomas Heller, chief operating officer at mining software company HASHR8.
Mining for bitcoins is an expensive endeavor, and estimates have been made that the value of Bitcoin needs to be in excess of $15,000 for Canaan to be profitable.
There in, may lie the silver lining for Canaan as Bitcoin stands at $18,824 as of Tuesday mid day, but it is taking a beating, off $446 so far for the day . But as the saying goes, “all that glitters is not gold.”
We’d be cautious on this stock…
#2 Under the radar stock stock: HIVE Blockchain Technologies (OTC:HVBTF)
HIVE is a crypto currency mining company that owns state-of-the-art green energy-powered data centre facilities in Canada, Sweden, and Iceland producing newly minted digital currencies like Bitcoin and Ethereum continuously on the cloud.
The company saw an 8% increase in revenue from the previous years quarter to $13 million in digital currency mining. Cash flow grew substantially from a loss of $4.6 million a year ago to a positive flow of $10.6 million. All told HIVE reported second quarter profits of $7.4 million.
“We’ve been able to drive down costs, which has led to the highest cash flow in any one quarter since HIVE went public three years ago.” Said Frank Holmes, Interim Executive Chairman of HIVE.
Case in point, they’ve locked down 50% of their energy cost for 2021 in Sweden at 1.2 cents per kilowatt per hour, one of the lowest rates in the industry.
And HIVE continued expansion in 2020 and is currently in negotiations to acquire a data center in Grand Falls, New Brunswick, giving the company access to an additional 50 megawatts (MW) of low-cost green energy.
HIVE mined over 32,800 Ethereum and 88,300 Ethereum Classic coins in the quarter ended September 30. In the previous quarter they mined 25,000 Etherium coins, a significant increase over 50% compared to the same period last year.
“HIVE is the only public crypto mining company producing Ethereum on an industrial scale, sourcing green energy from facilities in Sweden and Iceland. With the explosion in DeFi, which has increased the demand for Ethereum, and now the debut of Ethereum 2.0, which will shrink the supply of Ethereum, we are in a very attractive position,” added Mr. Holmes.
The Bottom Line: One 1 of These Stocks is Worth Investing In As this new market emerges, there will be companies that soar and others that flounder. The prospect of its legitimacy is taking hold as more corporations and institutional players join the foray.
For investors looking to invest in under-the-radar crypto stocks it looks like HIVE Blockchain Technologies (HIVE.V), with its strong competitive position and positive cash profits, seems to be worth considering by investors today.