Cryptocurrency has seen something of a boom since the conclusion of the US Presidential election. Following the election Bitcoin hovered near the USD100,000 mark. Other coins such as Dogecoin and Ripple have also had impressive rallies. But as is the nature of the crypto market, surges have been accompanied by falls. The Armchair Trader analysed the post-election crypto action in more detail.
It depends on who you talk to as to the future credibility of crypto. But what cannot be denied is its increased influence as an asset class in the financial markets today and in the future. In the famous gold rushes of the past, such as the famous Californian 49er between 1848 and 1855, the individuals who made the most money were not the gold miners, but the people who set up stall at the start of the gold trail selling picks, shovels and provisions.
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In today’s crypto rush the trailhead entrepreneurs are the so-called bitcoin miners. This week’s Aquis stock pick is Vinanz [AQSE:BTC], a BVI-headquartered bitcoin mining company. It’s in the process of installing clusters of miners in the US and Canada, in decentralised data facilities.
Vinanz also trades on the OTC market in the US under the ticker VINZF. Although primarily a bitcoin miner, it’s also exploring the possibility of mining other cryptocurrencies, and operations in Decentralized Finance (DeFi). DeFi is an emerging peer-to-peer financial system that uses blockchain and cryptocurrencies to allow people, businesses, or other entities to transact directly with each other, AI and Big Data space in the future.
The company has 30 petahash of mining capacity installed. Last week it announced the addition of another 21 miners to its fleet in Nebraska via hosting partner Basic Mining. Nebraska is something of a mining hub for bitcoin, with 56 miners and hashing 7.3 petahash to Vianz’s bitcoin wallet.
Vinanz building up mining fleet
The company has been investing in its inventory – which for bitcoin mining is an expensive undertaking. Twenty additional Bitmain Antminer S19K Pro 120TH machines and a S21 Pro 234 miner take its fleet to fifty SK19s and six S21s. As well as Nebraska, Vinanz also operates bitcoin miners in Texas, Indiana, Iowa and in Labrador in Canada. Over summer it added 100 new mining rigs to the Canadian fleet.
In September Vinanz raised over GBP600,000 through a 13p issuance, the proceeds used to buy its new machines. This fundraise followed previous capital raises of GBP350,000 this time last year at 3p/share and a second in late February of this year of GBP447,750 at 12p/share.
At the half-way point of its financial year, in May, the company was pleased to report its first profit from start-up. GBP174,859 of net profits were chalked up for the six-months. Over the period Vinanz increased its mining fleet from 120 to 300. Processing capacity was lifted from 12 to 32 petahash per second, as well as undergoing maintenance updates of its existing fleet, increasing hashrates by about 12%. Holdings rose from 7.14BTC to 13.85BTC.
The company opened the week (25th November) at 14.125p, up 71% over one-year and up 66% year-to-date. It has a market cap of GBP24.3m.
Vinanz is a young company with a clear focus on capitalising on the growing cryptocurrency market. With a strong focus on expansion and operational efficiency, the company is well-positioned to benefit from the industry’s continued growth. While the cryptocurrency market is inherently volatile, Vinanz’s strategic approach and focus on cost-effective mining operations make it an intriguing investment opportunity for those willing to embrace the risks and rewards of this emerging asset class.
