Thai Technology Stock Skyrockets After Bitcoin Mining Announcement
Jasmine Technology Solution Pcl is one of the best-performing stocks of 2021 with much of its increase attributed to a July announcement of its foray into bitcoin mining. The stock is up nearly 7000% year to date.
“The strong response from investors has exceeded our expectations. There’s bullish optimism toward our new direction even though this is just the beginning.” - Jasmine Technology Solution Pcl Chairman Soraj Asavaprapha.
The Bitcoin Boom in Thailand
Jasmine Technology Solution Pcl is not the only company to be moving into the world of bitcoin mining with appliance manufacturer AJ Advance Technology Pcl having also recently announced an investment.
According to a crypto payment platform, 3.6 million people in Thailand own some form of cryptocurrency. Additionally, Thailand comes in twelfth place on the 2021 Global Crypto Adoption Index.
Bitcoin mining is a relatively new business sector for the country but investments into the industry appear to be well-received by the market so far, an indication of the positive sentiment towards bitcoin in Thailand.
However, its adoption puts additional pressure on the Bank of Thailand which has said it will issue more rules in order to protect investors and Thailand’s financial system.
Regardless of what local regulations are created, the chairman of Jasmine Technology Solution Pcl isn’t concerned since he says the company can sell the bitcoin they mine in overseas markets.
Jasmine Technology Solution’s Bitcoin Mining Plans & Projections
The company has mined 8 bitcoin so far since their announcement in July and currently owns 325 ASIC machines with plans to purchase up to 7,000 more in the upcoming year. The total investment is projected to be around $98 million once all purchases are complete.
Soraj estimates that up to 80% of the company’s total turnover could be attributed to its bitcoin mining business in the future. According to company calculations, mining operations will continue to operate profitably as long as the market price of Bitcoin remains above $30,000.
Bloomberg reported that the company’s stock is being traded at approximately 500 times its trailing 12-month earnings. The company recently reported a 436% increase in net income in 2021 stemming from its traditional telecommunication technology services and products.
About Jasmine Technology Solution
The company was originally founded in 1995 as a telecommunication company. The original list of products and services includes ICT system design and implementation, WiFi system design and implementation, smart CCTVs, Fiber Optic Connector termination service and system installation, and more.
After the bitcoin mining announcement, the company website now proudly announces its vision of becoming the largest bitcoin mining farm in not only Thailand but the whole of Southeast Asia. It has also incorporated the bitcoin logo into its own logo.