The rally of shares of a Thai technology company, after revealing its expansion in Bitcoin mining, surprised even the president of the company itself.
In particular, the share of Jasmine Technology Solution Pcl has been “launched” since the announcement of the plan in late July, although the project has not yet brought significant profits to the company. The stock has risen nearly 7,000% since the beginning of the year, making it the largest technology company in the world with a market capitalization of at least $ 2 billion, according to data compiled by Bloomberg.
“The strong investor response has exceeded our expectations,” said President Soraj Asavaprapha in an interview. “There is an upward optimism towards our new direction, even though this is only the beginning.”
Jasmine Technology is just one of the many Thai companies operating in the field of digital assets. AJ Advance Technology Pcl announced this month its investment in Bitcoin mining. Siam Commercial Bank Pcl and Kasikornbank Pcl have also acquired a stake in startups active in the field of cryptocurrencies.
Enthusiasm for cryptocurrencies, especially among new investors, has driven local stock exchanges to new highs, prompting regulators to propose stricter rules.
Jasmine Technology has mined only eight Bitcoins from its 325 mining machines since it began operations a few months ago. Soraj expects it to be much more active next year, with plans to invest about $ 98 million in as many new 7,000 devices as possible. Revenues from the mining company will represent about 80% of the company’s total turnover by the end of 2022, he noted.
“We still have a small picture of the company’s fundamentals, valuations and revenue forecasts, because Bitcoin mining is very new in Thailand,” said Wilasinee Boonmasungsong, an analyst at Globlex Securities Co. in Bangkok.
The Bank of Thailand said last month that regulators plan to issue more detailed rules governing digital assets to protect the financial system and investors. Turnover at seven locally licensed cryptocurrency exchanges rose to 221 billion baht ($ 6.58 billion) in November, up from 18 billion baht a year earlier, according to the Securities and Exchange Commission.
Local rules will not affect Jasmine Technology, Soraj said, as the company can sell cryptocurrencies internationally and the mining business will be profitable as long as the price of the world’s largest cryptocurrency remains above $ 30,000.
Jasmine Technology’s nine-month net profit rose 436% from a year earlier to 150 million baht. The stock, which hit a record earlier this month, traded nearly 500 times in the last 12 months, according to data compiled by Bloomberg.
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Source From: Capital
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