Like the gold rush of 1848, hordes of computer-savvy entrepreneurs have flocked to mining cryptocurrencies looking for riches. Dependent on the picks and shovels of the 21st century, crypto miners extract the digital rewards of Bitcoin plus a share of transaction fees using purpose-built hardware, cost-effective power sources and computational muscle. The rewards appear to be greater than striking a motherlode—the global cryptocurrency mining market was valued at US $610 million in 2016 and has been projected to exceed $38 billion by 2025. In a bold foray into the new gold rush, International Spirits & Wellness Holdings Inc. (“ISW Holdings”) (OTC: ISWH) (ISWH Profile) recently announced a strategic partnership with Bit5ive LLC, a global leader in cryptocurrency mining and innovative turnkey mining solutions. ISW Holdings looks to combine this joint venture with its current renewable energy project to provide crypto miners the energy, hardware, and infrastructure they need, capturing a significant slice of a burgeoning digital bonanza. The crypto mining sector has grown so fast that it has impacted earnings of major tech companies. Several years ago, graphics processing unit (GPU) designers Advanced Micro Devices Inc. (NASDAQ: AMD) and NVIDIA Corporation (NASDAQ: NVDA) posted unprecedented sales of their GPU products designed for gaming, thanks to the cryptocurrency mining boom. It was found that those GPUs had computing ability for the complex mathematical tasks at the center of mining cryptocurrency. Riot Blockchain Inc. (NASDAQ: RIOT), long focused on building, supporting and operating blockchain technologies, has been heavily investing in its Bitcoin mining operation, and tech behemoth Tencent Holdings Limited (OTC: TCEHY) is reportedly creating a new digital currency team to explore possible new uses of cryptocurrency.
Digital Gold Rush
As in 1848, cashing in from the crypto bonanza seems best achieved by providing crypto miners with the needed tools and supplies. Outside of a few industrial uses, gold’s inherent value is really based on its scarcity due to the difficulties and costs of mining it. Gold has long held the mantle of safe haven from fiat currency gyrations and economic turmoil—and the same is proving true for the new digital gold. In just 11 years, cryptocurrency has exhibited similar attributes, and there is a myriad of forecasts that project Bitcoin to reach over one hundred thousand dollars in the next few years. The very structure of Bitcoin limits supply and increases the cost of mining over time. The gold supply has historically increased at around 2% per year; similarly, Bitcoin’s supply will increase less than 2% annually starting with the recent 2020 halving and will eventually go to less than 1% a year after the 2024 halving. A Bitcoin halving event occurs when the reward for mining Bitcoin transactions is cut in half, creating evermore need to operate crypto mining cost effectively to remain profitable. Halving also cuts in half Bitcoin’s inflation rate and the rate at which new Bitcoins enter circulation – not too far removed from the ever-increasing costs to mine gold.
Cryptocurrency mining is a computationally intensive process that requires a network of computers for verification of the transaction record, known as the blockchain. Crypto mining requires computers and special programs, which help miners compete in solving complicated mathematical problems to extract rewards. This enterprise demands significant computer and energy resources. However, just like the lone prospector pushed aside by mining conglomerates, it has become increasingly difficult for the average person to mine Bitcoins. As a result, specialized companies and pools are the ones currently experiencing successful profit generation.
According to a report from Coherent Market Insights, the global cryptocurrency mining market was valued at US $610 million in 2016 and is expected to exceed US $38 billion by 2025, growing at an eye-popping 29.7% compound annual growth rate over the forecast period. To understand why mining equipment is under such high demand, keep in mind that 6.25 Bitcoins are mined every 10 minutes – which currently equates to approximately $375 thousand dollars an hour in new Bitcoin. Crypto mining has turned into a thriving industry.
Build It and They Will Come
Intent on capitalizing on the crypto mining market boom, ISW Holdings (OTC: ISWH) (ISWH Profile) intends to deliver innovative crypto mining solutions by leveraging its new joint venture with Bit5ive. ISW Holdings is a holding company built of diversified partnerships focused on a common goal of brand communication from developers, consultants, design engineers, contractors, subcontractors, equipment providers, installation providers, end-users, and service providers. Bit5ive is a leader in crypto currency mining data centers with several projects currently in development in the United States.
Recognizing the opportunity, ISWH researched the crypto mining industry and identified a potential partnership with an industry leader that enjoyed a substantial industry footprint. After multiple meetings with Bit5ive and extensive due diligence, the two entities realized the synergies and engaged in a partnership. This new venture indicates that ISWH, in conjunction with Bit5ive, intends to build power crypto currency modular data centers that support all facets of cryptocurrency mining.
“We are incredibly excited to expand our current portfolio and move into what we believe is a sector poised for strong technological and financial growth,” stated ISW Holdings President and Chairman Alonzo Pierce. “This new joint-venture agreement enables us to collaborate with the experienced team at Bit5ive to innovate the infrastructure needed to run profitable, efficient crypto mining projects, and to take advantage of the incredible growth projected for the crypto market.”
Given the enormous energy demands of crypto mining, ISWH’s partnership with Proceso, LLC effectively dovetails to create high-density processing and mobile data centers powered by renewable energy. Proceso plans to offer low-cost diverse services to cryptocurrency mining clients, including hosting and colocation services. The strategy is intended to reduce power consumption while creating secure crypto mining data centers in the U.S.
The Bit5ive joint agreement and Proceso’s low cost renewable energy services align toward a common purpose. The new agreement could propel ISWH’s crypto mining and renewable energy portfolio partnerships to new levels of profitability. In addition to crypto mining and renewable energy, ISWH’s diverse portfolio partnerships include home health care for the chronically ill, wellness and restoration, the adult beverage industry, and early-stage operations in supply chain and logistics management end users.
Commenting on the joint venture, Bit5ive CEO Robert Collazo stated, “We have achieved considerable growth and hit several major milestones in the last three years, consistently growing our staff and honing our expertise along the way. It is important that we continue innovating and be over par with industry demand from every aspect.” Bit5ive is the producer and distributor of the most efficient and successful infrastructure for crypto mining hardware, POD5 and Power Skid 2.5. Bit5ive is also an official distribution partner of Bitmain, the industry-leading fabless manufacturer of computing chips and distributor of Antminers to more than 30 countries in Latin America, Central America, and the Caribbean. Bit5ive is quickly becoming one of the largest U.S.-based companies in the cryptocurrency mining and bitcoin farm industry, and the joint venture with ISW Holdings looks to be a boon for both companies.
Driven by Vision
The management of ISW Holdings set out to create a company that builds diverse business enterprises in multiple sectors. That vision led to entry into an explosive market opportunity. The cryptocurrency markets are here to stay, likely to only grow further and faster over time. This impending growth positions crypto mining solutions providers as attractive options for investors looking to tap into the technologies of today—and tomorrow.
Crazy for Crypto
NVIDIA Corporation (NASDAQ: NVDA) invented the GPU in 1999 and sparked the growth of the PC gaming market. The Nvidia GeForce GTX 1070 isn’t just a great graphics card for gaming—it’s also an excellent crypto mining GPU, due to its ability to manage a high hash rate of around 30 mh/s without needing too much power. Significantly, the more power a GPU requires, the more expensive it is to run—an important factor to consider because of its ability to cramp cryptocurrency profits.
Advanced Micro Devices Inc. (NASDAQ: AMD) is a multinational semiconductor company. AMD made headlines in 2017 when it released the AMD Vega 64—a graphics card known not only for its exemplary gaming abilities, but also as a cryptocurrency mining champion. The AMD Radeon VII then elevated the status quo, tripling the Vega 64’s hash rate to 90MH/s right out of the box.
Riot Blockchain Inc. (NASDAQ: RIOT) is focused on building, supporting and operating blockchain technologies. The company aims to be part of the disruptive blockchain technology ecosystem that is revolutionizing transactions. Riot Blockchain also launched its own Bitcoin mining operation and continues to expand it through ongoing multi-million dollar purchases of mining equipment. It is one of the largest cryptocurrency mining operations among publicly listed companies in North America.
Tencent Holdings Limited (OTC: TCEHY) is a leading provider of Internet value-added services in China. The company is reportedly creating a new digital currency team to explore possible new uses of cryptocurrency. Tencent operates communications and social platforms Weixin and QQ, a high-performance advertising platform, a digital bank, and provides financial technology and business services among other technological services.
Increasing numbers of digital miners are attracted to the profits being made and the potential bonanza promised by the future of cryptocurrency. Companies vested in the mining process are well positioned to benefit from the industry’s continued evolution.
For more information, please visit ISW Holdings (OTC: ISWH).
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