Global markets tumbled last week as news of the new Omicron variant spread around the world. Nevertheless, cryptocurrencies began to regain some composure this year. The demand and price of cryptocurrencies in the immediate term remain tied to the newly detected Covid variant and its potential to impact on the Federal Reserve's monetary policy. According to The World Health Organization, as more countries report cases, there is a "very high" global risk of surges, although scientists have said it could take weeks to understand its severity. Bitcoin, the top cryptocurrency by market value, was trading near USD 58,100 on Monday, representing an 8% gain compared to the low of USD 53,359 late on Sunday. ISW Holdings Inc. (OTC: ISWH), BIT Mining Limited (NYSE: BTCM), Canaan Inc. (NASDAQ: CAN), Marathon Digital Holdings, Inc. (NASDAQ: MARA), Coinbase Global, Inc. (NASDAQ: COIN)
Overall, cryptocurrencies continue to show strength, expanding their influence and presence across many industries. For example, earlier in October, the NBA agreed to its first cryptocurrency sponsorship deal with Coinbase, the publicly traded company that makes an exchange for crypto trading. According to a report by CNBC, the agreement indicates that Coinbase will leverage just about all the NBA's platforms including the WNBA, NBA G League, NBA 2K League and USA Basketball. The deal between the NBA and Coinbase comes shortly after the league commissioner Adam Silver explained that the league is projecting USD 10 Billion in revenue for the 2021-22 season, a figure that is possible thanks to fans returning to NBA arenas, which account for 40% of league revenue. In the meantime, sponsorships accounted for about USD 1.4 Billion last season, according to valuation firm IEG.
ISW Holdings Inc. (OTC: ISWH), transitioning to "BlockQuarry," pending name change, announced breaking news earlier this month regarding, "the filing of the Company's financial performance data for the Three and Nine Months ended September 30, 2021.
Financial Highlights for Three and Nine Months Ended September 30, 2021
-- Revenues from operations for the Three Months ended Sep 30 of $1.075 million (including deferred revenues), up 2,435% on year-over-year basis
-- Net Revenues (excluding deferred revenues) for the Three Months ended Sep 30 grew 579% on year-over-year basis
-- Net Revenues (excluding deferred revenues) for the Nine Months ended Sep 30 grew 185% on year-over-year basis
-- Net Cash increased by over 3,100% year to date to over $2.8 million
-- Total Assets increased 5,263% year to date to $9.56 million
-- Total liabilities decreased 73%, and total derivative liabilities decreased 98% to under $340k
Operational Highlights for Three Months Ended September 30, 2021
-- Exceeded internal expectations for cryptocurrency performance in first quarter of significant mining operations
-- Triggered Performance bonus clause for additional $1.7 million in Bitmain Miners from Minerset
-- Continued to eliminate dilution risk through aggressive reduction in convertible notes outstanding
-- Reached nearly $10 million in total assets
-- Neared completion of Phase 1 (build-out and deployment of first 20 MW) of Southeastern U.S. project to pair 56,000 mining rigs with 200 MW of power
The three months ended September 30 exceeded management expectations for growth in the Company's assets due to positive gains from mining operations as well as greater than anticipated expansion in equipment.
This was primarily due to the triggering of a performance incentive clause in the Company's agreement with Minerset, LLC that granted the Company an additional 150 Bitmain S19 95TH/s state-of-the-art miners carrying a market value of approximately $1.7 million.
'Q3 was a landmark quarter in Company history,' remarked Alonzo Pierce, President and Chairman of ISW Holdings. 'We switched on our mining fleet and saw our first substantial mining and hosting revenues hit the books. We also broke ground on our massive cryptocurrency hosting infrastructure and nearly finished the phase 1 build-out to deploy the first 20 MW to on-site Pods. In the process, we have seen a huge growth in the tangible value of the Company, as assets grew considerably while we continued our campaign to stamp out dilution risk through elimination of toxic notes and strict adherence to financing through a combination of cash from operations and non-toxic funding sources. As a result, we were in the best overall shape in our history coming into Q4, which is set to deliver on a much larger scale into year end.'"
BIT Mining Limited (NYSE: BTCM) announced back in September that it has entered into a Membership Interest Purchase Agreement and certain other auxiliary agreements (the "Agreements") with Viking Data Centers, LLC ("Viking Data Centers") to jointly invest in the development of a cryptocurrency mining data center space in Ohio (the "Ohio Mining Site") with access to power capacity of up to 85 megawatts ("MW"). Development of the Ohio Mining Site is currently expected to be fully completed in February 2022. As part of its growth strategy, BIT Mining has been executing a robust plan to invest in, acquire and develop high-quality mining resources around the world. The Company has shipped 1,016 mining machines to the United States as of the date of this press release. Going forward, the Company plans to further strengthen its expansion efforts and accelerate its global development.
Canaan Inc. (NASDAQ: CAN) reported earlier last month that it has secured a follow-on purchase order from HIVE Blockchain Technologies Ltd. (TSX.V: HIVE; NASDAQ: HIVE) ("HIVE"), for 6,500 units of its next-generation Avalon Bitcoin mining machines. This new order by HIVE follows the two recent purchases of 4,000 units and 6,400 units of Canaan's Avalon Miners in August 2021 and January 2021, respectively. Mr. Nangeng Zhang, Chairman and Chief Executive Officer of Canaan, commented, "The additional purchase order from HIVE further strengthens our working relationship. The consecutive deals are not only a testament to the quality and performance of our mining machines, but also demonstrate our effective client relationship-building efforts. We will continue to position ourselves as an important partner for HIVE as they accelerate their business growth. With our next-generation Avalon Miners as well as our quality on-site and off-site support, we are confident to achieve greater success with our clients in the crypto-mining field."
Marathon Digital Holdings, Inc. (NASDAQ: MARA) reported earlier in September that DMG Blockchain, a vertically integrated blockchain and cryptocurrency technology company, will become the first North American Bitcoin miner, excluding Marathon, to join Marathon's mining pool, MaraPool. On Monday September 13, 2021, DMG Blockchain will begin pointing 100% of its hash rate towards MaraPool, as the pool opens to additional Bitcoin mining companies. MaraPool is a U.S.-based Bitcoin mining pool that is focused on reducing the environmental impact of Bitcoin mining through carbon neutral mining. The pool, which is fully audited by a third-party firm in the U.S., provides its members with industry leading transparency, an intuitive reporting system, and access to exclusive services from NYDIG.
Coinbase Global, Inc. (NASDAQ: COIN) reported earlier this October its third quarter 2021 shareholder letter, including financial results. According to the Company Q3 was a strong quarter for Coinbase marked by deeper customer engagement with its products, continued product innovation, and ongoing industry momentum that the Company has experienced throughout 2021. "We are pleased by the growth in our Subscription and services revenue which grew 41% sequentially to $145 million in Q3. Growth in Subscription and services is an indicator that crypto is moving into the utility phase, where users are able to generate yield on their crypto and engage beyond crypto's first use case: investing. Approximately 28% of our retail MTUs both invested and engaged with at least one other product in Q3. Further, 49% of our retail MTUs engaged with noninvesting products such as Staking, Earn, and Coinbase Card, including 2.8 million users who were earning yield on their crypto assets," Coinbase indicated.
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