Home > Boards > Canadian > Cryptocurrency Industry > Banxa Holdings Inc (BNXAF)
Followed By 1
Posts 60
Boards Moderated 0
Alias Born 11/14/2010

Tuesday, March 09, 2021 7:42:22 PM

Re: None

Post# of 24
The next Multi Multi Bagger

Forget Hive Blockchain (TSX:HIVE) Stock: Here’s a Better Opportunity
Vishesh Raisinghani | March 9, 2021 | More on: BNXA HIVE

Diagonal chain made of zeros and ones. Cryptocurrency and mining.Image source: Getty Images
Bitcoin mining startup HIVE Blockchain Technologies (TSX:HIVE) has had an incredible run over the past year. The stock is up a jaw-dropping 2,116% over the past year. That means you could have invested $10,000 in the stock when the crisis erupted last March and have $211,600 right now.

The stunning growth in Bitcoin adoption has been the prime driver of HIVE stock over the past year. However, the stock is now starting to look like it’s priced to perfection. Meanwhile, a much better opportunity may have emerged in the Bitcoin sector that could deliver similar returns over the next year.

If you’re curious about the cryptocurrency sector and are looking for hyper-growth opportunities, here’s what you should know.

HIVE stock valuation
HIVE stock is considered a proxy for Bitcoin by most investors. The company owns and operates massive server farms that mine BTC. Some of this freshly minted BTC is sold to finance operational growth while the rest is held in reserve. HIVE stock is to Bitcoin what a gold miner’s stock is to gold.

However, the miner’s stock has outperformed the underlying asset, which is never a good sign. Bitcoin’s market value has surged 560% over the past year, far lower than HIVE stock’s performance over the same period. The company is now worth $2 billion, while its underlying BTC reserves are worth only $15 million.

Annualized revenue from mining could be roughly $54-$100 million this year. That means the company’s valuation ranges from 10 to 20 times forward sales and 133 times crypto reserves.

In short, the price is simply unjustified. Bitcoin could deliver a tenfold return by the end of 2021 and HIVE stock would still be overvalued. Instead, Canadian investors can invest in a crypto stock that’s arguably better valued.

Banxa stock
Australia-based Banxa Holdings (TSXV:BNXA) is a crypto payment processor. The company allows users to convert their traditional currencies (Canadian dollars, U.S. dollars, etc.) into crypto (BTC, ETH, etc.).

Banxa is arguably a better opportunity than HIVE stock for two reasons: valuation and business model.

Payment processing is a low-margin, high-volume, capital-light business. Stocks in this industry have had a tremendous run over the past year. As consumers spend more over the next year, their transaction volume should surge. In Banxa’s case, total transaction volume is amplified by the market value of cryptocurrencies.

Meanwhile, financial regulations act as barriers to entry. Banxa seems to be the dominant payment processor for crypto in Australia and Canada. It’s gaining momentum in other countries too. That puts it in a favourable position as adoption grows.

Finally, Banxa’s market value is just $150 million at the time of writing. That’s doubled since late January. The stock is trading at a price-to-sales ratio of just 10. Not only is that reasonable when compared to other payment stocks, but it’s also much fairer than HIVE stock.

Bottom line
HIVE stock is overvalued and newly listed Banxa Holdings could be a better opportunity for Bitcoin investors.

Looking for
Recent BNXAF News

Pro Music Rights, Inc., one of the world's largest music licensing companies, announces that it intends to Release its Financials by August 19, 2022 NUVG Aug 11, 2022 11:11 AM

AXTG Partner with Save Planet Earth to digitize and plant 100 million trees with NFTs AXTG Aug 11, 2022 10:15 AM

PURA Announces New Development Expanding Cannabis Market Opportunity PURA Aug 11, 2022 9:34 AM

Pasithea Therapeutics Announces Results of Preclinical Study Demonstrating Tolerizing Vaccine Efficacy in Relapsing-Remitting Model of Multiple Sclerosis KTTA Aug 11, 2022 8:35 AM

SinglePoint Acquires Frontline Power Solutions, a Multi-State Licensed Energy Services Company SING Aug 11, 2022 8:30 AM

Pacific Booker Minerals Inc. Announces AGM Results and Project Update PBMLF Aug 11, 2022 7:30 AM

GALILEO ANNOUNCES THE START OF REVENUE GENERATION AND ITS EXPANSION PLAN. MDRM Aug 10, 2022 3:23 PM

ResGreen Powers Up - Introduces Wireless Battery Charging for its Fleet of Mobile Robots RGGI Aug 10, 2022 10:53 AM

Kona Gold Beverage, Inc Signs New Distribution Partners in California, Illinois, and Nevada KGKG Aug 10, 2022 9:00 AM

Investing in Quantum Computing: What Every Investor Needs to Know GOOGL Aug 10, 2022 8:45 AM

New Drugs in Pipeline for Hypertension, the Silent Global Pandemic BMY Aug 10, 2022 8:45 AM

Mill City Ventures III, Ltd. provides 2nd Quarter Fiscal 2022 Guidance Revenue Increased 83% year over year and 83% for 6-month period MCVT Aug 10, 2022 8:44 AM

Branded Legacy, Inc. Cancels Another 60 Million Common Shares BLEG Aug 10, 2022 8:30 AM

Defiance Discovers Blind Silver System At Lucita DEF Aug 9, 2022 10:31 AM

USMJ Announces New York Adult Use Cannabis License PURA Aug 9, 2022 10:21 AM

Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 2M
  • 3M
  • 6M
  • 1Y
  • 2Y
  • 3Y
  • 5Y