Sector Snapshot - Cryptocurrency Stocks see Significant Revenue Growth Ahead Driven by Surge in Millennial and Institutional Interest
August 07, 2020 at 08:00 AM EDT
Point Roberts, Washington and Vancouver, British Columbia--(Newsfile Corp. - August 7, 2020) - Investorideas.com, a global investor news source covering cryptocurrency and blockchain issues a sector snapshot looking at recent news and developments, featuring Integrated Ventures Inc. (OTCQB: INTV).
Bitcoin and all major cryptocurrencies have seen not only a massive surge in prices recently but also a huge growth in both acceptance and interest in crypto as a replacement for and a hedge against traditional money and finance. The demand is driven by both millennials and institutional investors.
Matt Luongo, CEO of Thesis recently reported, "Millennial finance is premised on the ability of new technologies to fundamentally and permanently reshape how the money system operates in both form and function. This isn't just theory. It's happening now, and millennials are leading the charge. The success of platforms like Robinhood, Acorns and Wealthfront demonstrates the potency of this movement and underscores millennials' thirst for options beyond the traditional banks and brokerage houses."
"But these apps are only the tip of the iceberg. Their fundamental innovation is around user experience; they ultimately use the same financial infrastructure that legacy banks and wealth managers do. Millennial finance has more in store - and cryptocurrencies will be key. Rather than building a better train to run over the same old rails, crypto lets us build new, open, peer-to-peer rails."
Forbes reported, "Institutional demand for bitcoin is soaring amid the coronavirus crisis, with multi-billion dollar bitcoin and crypto-asset manager Grayscale reporting its biggest-ever quarterly inflows of almost $1 billion."
Previously involved in the crypto sector and now seeing significant opportunities ahead, Integrated Ventures Inc. (OTCQB: INTV) just reported the execution of a $1,000,000 Term Sheet with Eagle Equities, LLC and updated shareholders with recent corporate developments.
From the news: The Company has agreed and executed Term Sheet with Eagle Equities, LLC for Private Placement, in the amount of $1,086,956, which will be used to expand cryptocurrency operations and to support future acquired operations. Use of proceeds: (1) purchases of 500 (*) assorted mining rigs: Antminer S17/S19, WhatsMiner and Innosilicon A10 and (2) deployment of the capital to support potential M&A transactions (**).
From the news: The Company has decided to diversify its business operations, by expanding its focus from cryptocurrency mining operations to aggressive pursuit and implementation of M&A roll-up, a growth driven strategy seeking to achieve, above market, risk-adjusted returns, primarily by targeting: (1) companies in financial distress, (2) undergoing a turnaround or (3) undervalued companies that are looking for financial assistance, due to the current economic conditions. Integrated Ventures intends to acquire, merge-in and consolidate underperforming companies, mainly in the technology sector, which will allow INTV to combine all financial and management resources together, to cut down operational costs, and to increase the Company's revenues and market cap.
From the news: To assist with execution of roll-up strategy, the Company plans to engage a business consulting group, with verifiable revenue generating M&A targets. These pre-vetted targets have a history of 2+ year operations with consistent revenues and EBITDA margins of 10%+. The Company intends to pursue such acquisitions, by offering below market multiples to the revenues with 10%-15% in cash and common stock. As of today, the Company has identified 2 such targets and if successful in closing these 2 deals, Integrated Ventures annual sales are expected to reach around $5.5 million.
Integrated Ventures CEO, Steve Rubakh, commented, "The Company plans to diversify and expand its operations, by acquiring revenue generating assets that are available at below market pricing. We intend to assemble a team consisting of experienced and seasoned business professionals, ready to execute a value driven approach, thru a bottom-up research and due diligence process that seeks to capitalize on unique market opportunities.
Continued: "We believe that this new business strategy offers an exciting path forward and will significantly increase Company's assets, market valuation and result in an increase in shareholder's value."
With the funding, Integrated Ventures intends to focus on the following sectors: Data Center - Design Construction & Management, Cryptocurrency- Mining and Equipment Sales, DeFi Blockchain - Investments, Applications & Node Operations and E-Commerce & Information Technology Consulting Services.
Grayscale Investments, (OTCQX: GBTC) the world's largest digital currency asset manager, recently announced that Shares of both Grayscale® Bitcoin Cash Trust and Grayscale® Litecoin Trust have received approval from FINRA for public quotation under symbols: BCHG and LTCN respectively on OTC Markets, marking the introduction of the first publicly-quoted securities in the U.S deriving value from Bitcoin Cash (BCH) and Litecoin (LTC).
The Trusts are open-ended trusts sponsored by Grayscale and are intended to enable exposure to the price movement of the Trusts' underlying assets through a traditional investment vehicle, avoiding the challenges of buying, storing, and safekeeping digital Bitcoin Cash or Litecoin directly.
BCHG and LTCN represent Grayscale's fifth and sixth publicly-quoted investment products. Grayscale® Bitcoin Trust (OTCQX: GBTC), Grayscale® Ethereum Trust (OTCQX: ETHE), Grayscale® Ethereum Classic Trust (OTCQX: ETCG), and Grayscale® Digital Large Cap Fund (OTCQX: GDLC) are also publicly-quoted and available to all investors with access to US securities. Investors will be able to find current financial disclosure and Real-Time Level 2 quotes for Shares on www.otcmarkets.com/stock/BCHG/overview once trading for BCHG commences and www.otcmarkets.com/stock/LTCN/overview once trading for LTCN commences.
A stock that has been on fire with higher than normal trading volumes, Marathon Patent Group, Inc. (NASDAQ: MARA) one of the few Nasdaq listed cryptocurrency mining companies in the United States, recently announced the purchase of 700 next generation M31S+ ASIC Miners from MicroBT. The miners are expected to arrive mid-August.
From the news: Additionally, Bitmain has notified the Company that 660 of the 1,660 Bitmain S-19 Pro Miners previously purchased will be delivered in mid-August.
From the news: Marathon's Chief Executive Officer, Merrick Okamoto, stated, "In the past few months, we have heavily invested in our business through the purchase of now 3,020 next generation miners. We currently have 700 M31S+ miners operational producing 56 PH/s."
From the news: Okamoto continued, "Upon delivery and installation of the 1,360 miners due to arrive in August, the company will have 2,060 Miners operational, producing 184 PH/s. As a result, the Company's aggregate hashing power capacity would increase by 320% from the current level of 56 PH/s. Based on current Bitcoin prices, the company would expect to become cash flow positive.
From the news: The 1,000 remaining S-19 Pro Miners due to arrive in the 4th quarter will produce an additional 110 PH/s, which when installed will give the Company an aggregate Hashpower of 294 PH/s.
How big is the opportunity for companies in the sector? Crypto Corner reported, "Financial services firm Square, Inc. (NYSE: SQ) reported in a letter to shareholders, that it generated $875 million of bitcoin revenue and $17 million of bitcoin gross profit during Q2 2020 on its Cash App. This represents a revenue increase of 600 percent year over year, something the letter ascribes to "an increase in bitcoin activities and growth in customer demand." As of June, the company boasted "more than 30 million monthly transacting active customers," on its Cash App."
For investors following the sector Investor Ideas has a comprehensive Bitcoin, Blockchain and Digital Currency Stocks Directory
Also visit the Crypto Corner podcast and commentary on what's driving cryptocurrency stocks and the crypto market.
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