9:00a ET 9/27/2021 - PR Newswire
U.S. Based Crypto Miners Reap the Benefits of Supportive Regulations
Mentioned: BTBT HIVE ISWH OLB
The Chinese government's crackdown on cryptocurrencies is once again in the news. According to CNN, Chinese government agencies including the country's securities regulator and the People's Bank of China (PBOC) said in a statement on Friday that all cryptocurrency-related business activities are illegal and promised to punish illicit activities involving digital currencies. The first stages of the crackdown have already caused many crypto miners to leave China and set up operations elsewhere. In fact, Texas seems to be one of such desired destination. BBC reports that Governor of Texas Greg Abbott has been a vocal supporter for cryptocurrency. "It's happening! Texas will be the crypto leader," he tweeted in June. In the same month, Texas became the second U.S. state after Wyoming to recognize blockchain and cryptocurrency in its commercial law, paving the way for crypto businesses to operate in the state. ISW Holdings Inc. (OTC: ISWH), HIVE Blockchain Technologies Ltd. (NASDAQ: HVBT), Canaan Inc. (NASDAQ: CAN), The OLB Group, Inc. (NASDAQ: OLB), Bit Digital, Inc. (NASDAQ: BTBT)
The U.S. in now the new hub of the bitcoin mining market. It is the second-biggest mining destination on the planet, accounting for nearly 17% of all the world's bitcoin miners as of April 2021. That's a 151% increase from September 2020, according to CNBC. "For the last 18 months, we've had a serious growth of mining infrastructure in the U.S.," said Darin Feinstein, founder of Blockcap and Core Scientific. "We've noticed a massive uptick in mining operations looking to relocate to North America, mostly in the U.S."
ISW Holdings Inc. (OTC: ISWH), transitioning to "BlockQuarry," pending name change, reported earlier last week that an update for, "current and prospective shareholders on core performance metrics, timeframe for hosting deployment, and corporate identity.
Performance Metrics. Mining is fully underway in Pennsylvania, and nearing full capacity on hashrate. Final adjustments and updates are being implemented into month end to push performance up to peak potential, at which time the Company's PA mining operations will be producing mining revenues that will contribute to an overall monthly revenue run rate of $1.5 million at current cryptocurrency pricing.
In addition, the Company anticipates a breakout record quarter for the three months ending September 30, 2021. However, the fourth quarter should be a much more significant breakout in financial terms given that it will be the first quarter featuring a full three months of mining at peak capacity as well as the start of revenues from hosting operations.
Hosting Power Deployment. Management conducted site visits to its primary Southeastern US cryptocurrency mining hosting site earlier in the week. Based on that visit, the project is on schedule and the Company believes it will meet its approximate target for deploying the first 20 megawatts of power at the site around the end of October. This will begin the process of scaling up hosting operations to the full 200 MW that the project is designed to deploy to the Company's hosting clientele.
Corporate Identity. The Company is still awaiting final approval of its corporate name and stock symbol change from FINRA. As communicated in the Company's August 3 release, ISW Holdings has officially filed for a corporate name change to "BlockQuarry Corp." The Company also filed to change its trading symbol. Both filings are now actively going through FINRA, and more details will be announced when FINRA has completed its due diligence process.
Management Commentary. 'We will unquestionably log our best quarter in Company history - by a wide margin - when the books close at the end of the month," noted Alonzo Pierce, ISWH CEO. "But that will likely be dwarfed by what rolls in over coming quarters. We have made a few final adjustments and updates that are being implemented right now that will take us to full capacity in terms of achievable hashrate in Pennsylvania. That will bring us to a topline run-rate of approximately $1.5 million per month, which may double again beginning midway through the fourth quarter as we begin to ramp up hosting revenues.'"
