#CryptoCorner: A New Crypto Reality? More Businesses Adopt #Crypto Payments as the Sector Builds Momentum (TSXV: $INLA.V) (TSXV: $HUT.V) (NASDAQ: $MARA) (OTC: $GBTC)
#CryptoCorner:
A New Crypto Reality? More Businesses Adopt #Crypto Payments as the Sector Builds
Momentum (TSXV: $INLA.V) (TSXV: $HUT.V) (NASDAQ: $MARA) (OTC: $GBTC)
Point Roberts WA, Delta BC – June 3, 2019 – Investorideas.com, a global investor
news source covering blockchain and cryptocurrency issues a special edition of the Crypto Corner looking at
developments in the cryptocurrency sector, featuring Interlapse Technologies Corp. (TSX-V: INLA) and its recent
entry in the space as a public company.
Read this in full at https://www.investorideas.com/news/2019/crypto-corner/06031CryptoPayments.asp
In recent news from The WallStreet Journal, Facebook is
reportedly recruiting financial firms to help start a cryptocurrency-based
payments system.
The effort represents the most mainstream
application yet of cryptocurrency and Facebook has discussed the matter with payments
firms including Visa, MasterCard and First Data Corp.
A spokeswoman for Facebook's blockchain
efforts declined to comment to the Journal, saying simply that it "is
exploring many different applications."
In just the past 12 months, investments in
cryptocurrency-related assets have nearly tripled to $14.4 billion, across more
than 700 companies and funds, according to industry tracker Crypto Fund Research. Regulators in New
York State describe the market as "thriving" and have
granted virtual-currency trading approvals known as "BitLicenses" to at least 18
companies.
Bitcoinist also recently reported on how as the stock
market has suffered under US-China relations as of late, Bitcoin “has been outperforming the red-hot stock
market by a whopping 10 times so far in 2019. BTC price $8268.81 -2.40% also managed to mark a sharp
recovery back to $8,680.”
As Bitcoinist reported, “Bitcoin is breaking
through and then finding support at levels which were previously a resistance
throughout the bear market. This could suggest the bulls are in control as they
are constantly breaking through prior resistance. The next target to break is
an important psychological level of $10,000.”
Interlapse
Technologies Corp. (TSX-V: INLA), who through their
wholly owned subsidiary Coincurve.com allows Canadian customers to buy Bitcoin and
BitcoinCash in the simplest form, announced that the Company’s shares commenced
trading on May 30th on Canada’s TSX Venture Exchange under the trading symbol: INLA.
This listing follows Interlapse’s acquisition
of Vancouver-based Skyrun Technology Corp., which is now a wholly owned
subsidiary of the Company.
“The transaction with Skyrun and a concurrent
listing on a globally recognized stock exchange brings credibility and
authenticity to our business, as well as the entire virtual currency industry,”
commented Wayne Chen, co-founder of Skyrun and the newly appointed CEO of
Interlapse.
As a result of the Skyrun acquisition, the
Company now owns the intellectual property relating to the virtual currency
platform coincurve.com, where Canadians and
eventually international customers can purchase Bitcoin and Bitcoin Cash.
As a public company, customers can rely on coincurve.com for transparency.
Furthermore, coincurve.com is a non-custodial
service, greatly minimizing financial risk or loss of customers’ virtual
currencies. The company also expects soon to expand globally into emerging and
under-banked countries, hoping to educate, adopt and deliver Bitcoin and
Bitcoin Cash to users across the world.
“I am privileged to be a part of this
opportunity, and enthusiastic about our expansion into global markets,” Mr.
Chen further commented. “With the growing acceptance of virtual currency, we
are positioned to flourish within this new, globally connected business
frontier.”
Hut 8 Mining Corp. (TSXV: HUT) (OTCQX: HUTMF), one of the world's
largest public cryptocurrency mining companies by operating capacity and market
capitalization, recently announced its financial
results for the first quarter ended March 31, 2019.
Some of the Q1-2019 highlights included
revenue of $12.1 million for Q1-2019, adjusted EBITDA of negative $1.3 million
for Q1-2019, 2,405 bitcoin mined in Q1-2019 and a fair value gain on
re-measurement of digital assets of $789,678.
"While bitcoin mining economics
significantly improved in April 2019 with an increase in the price of bitcoin,
our first quarter was negatively impacted by bitcoin prices consistently
trading below US$4,000 and the network difficulty increasing by 14%. In
addition, record cold weather in Alberta resulted in higher electricity
pricing," said Andrew Kiguel, Chief Executive Officer of Hut 8. "In
March and continuing into the second quarter, we have experienced lower
electricity prices and a much improved bitcoin price. This has significantly
improved our margins in the second quarter thus far."
“Alberta had a record cold winter, which led
to higher electricity prices at our operations that are not under a power
contract. Despite having higher than normal electricity prices in January and
February, Hut 8's cost per bitcoin decreased slightly from US$3,995 in Q4-2018
to US$3,950 in Q1-2019. The impact of management's cost reduction initiatives
and electricity optimization in Q1-2019 were successful in offsetting the
higher energy prices. In addition, Hut 8's management was successful in
reducing corporate overhead excluding non-cash share-based compensation from
$994k in Q4-2018 to $747k in Q1-2019.”
For Q1-2019, fair value gain on
re-measurement of digital assets of $789,678 represented the gain on adjusting
the value of the digital assets held in inventory to the market value on the
reporting date. This was the first gain on re-measurement of digital assets in
Hut 8's history and marks a turn in the bitcoin prices. In future quarters, the
Company would expect to see gains or losses based on the price of bitcoin on
the reporting date, relative to the price on the day mined, when revenue is
recorded.
Hut 8 recognized negative $1.3 million in
Adjusted EBITDA, the first quarter of negative Adjusted EBITDA operations for
the Company. A net loss was recorded for the quarter was $6,065,495. Both
losses were largely as a result of bitcoin prices remaining at approximately a
52-week low during Q1-2019, hash rates increasing, and volatile natural gas
prices which all negatively impacted operations for the quarter.
"Hut 8 remains committed to solely
mining bitcoin and to retain as much as possible. Despite harsh operating
conditions, Hut 8 retained 2,615 bitcoin at the end of Q1-2019. Management
underwent significant cost saving measures at the end of 2018 to ensure we
maintain a lean cost structure and are in a position to capitalize on the
recent upswing. Our operations are stronger than ever, and we are poised for improved
financial performance going forward given the recent appreciation in the price
of bitcoin that began in April 2019," said Kiguel.
Marathon Patent
Group, Inc.
(NASDAQ:MARA) also recently announced its operating
results for the three months ended March 31, 2019, as published in its Form
10-Q filed with the Securities and Exchange Commission.
Some of the operating results for the Quarter
Ended March 31, 2019 included revenues of $230,694 during the three months
ended March 31, 2019 compared to $239,967 during the three months ended March
31, 2018; operating loss improved to $984,909 (inclusive of non-cash expenses)
for the quarter ended March 31, 2019 compared to an operating loss of $1.8
million (inclusive of non-cash expenses) quarter ended March 31, 2018 and the
company had approximately $2 million of cash and cash equivalents as of March
31, 2019.
Merrick Okamoto, Chief Executive Officer,
stated, “We’re pleased to show significant financial improvement on a year over
year basis including significant reductions in our operating costs, While
recent improvements in the price of Bitcoin are clearly beneficial to our
ongoing mining operations and should benefit our financial performance in our
Q2, we continue to seek potential acquisition opportunities that we deem to
offer the best opportunity for appreciation for our shareholders.”
Grayscale
Investments, LLC (OTC: GBTC), a global leader in digital
currency asset management, recently announced that common
units of fractional undivided beneficial interest in Grayscale Ethereum Trust™
(“ETHE”) were approved by FINRA for a public quotation on the OTC Markets.
Launched
in 2017 and sponsored by Grayscale, ETHE is an open-ended trust that holds
Ethereum and derives its value solely from the value of Ethereum. Investors in
ETHE can gain exposure to the price movement of Ethereum without the challenges
of buying, storing, and safekeeping Ethereum. As of April 30, 2019, each Share
of ETHE represents ownership of 0.09662399 Ethereum. ETHE will not generate any
income and regularly distributes Ethereum to pay for its ongoing expenses.
Therefore, the amount of Ethereum represented by each Share gradually decreases
over time.
There
will be no trading volume in the Shares’ public quotation until the Shares are
DTC eligible, which ETHE is expected to receive soon. Investors will be able to
find current financial disclosure and Real-Time Level 2 quotes for Shares of
ETHE on the OTC Markets website once trading commences.
Grayscale’s
investment products are available to institutional and accredited individual
investors. Grayscale sponsors nine single-asset investment products that
provide exposure to Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum
Classic (ETC), Horizen (ZEN), Litecoin (LTC), Stellar Lumens (XLM), XRP, and
Zcash (ZEC). In 2018, Grayscale introduced its first diversified investment
product, Grayscale Digital Large Cap Fund™, which provides exposure to the top
digital currencies by market capitalization. As of May 15, 2019, Grayscale
managed approximately $1.9 billion in assets.
ETHE is
Grayscale’s third publicly quoted investment product. In addition to ETHE,
Grayscale Bitcoin Trust™ and Grayscale Ethereum Classic Trust™ are also
publicly quoted and available to all individual and institutional investors.
Mass
adoption of crypto payments and Bitcoin has been viewed with skepticism since
its entry into the financial community, however with the recent improvements in
technology, more companies coming out with crypto payment solutions and
instability in the stock market, 2019 looks to be the closest we’ve come to seeing
crypto going mainstream.
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