Year-to-date (YTD), the share surge is nearly 7,000%, most among global tech companies with a market value of at least $2 billion, according to Bloomberg
A world-beating share rally by a Thai technology company after it unveiled an expansion into Bitcoin mining has surprised even the firm’s chairman.
Jasmine Technology Solution Plc stock has more than tripled since the plan was announced in late July, although the cryptocurrency project has yet to generate significant earnings for the firm. Year-to-date (YTD), the share surge is nearly 7,000%, most among global tech companies with a market value of at least $2 billion, according to data compiled by Bloomberg.
The strong response from investors has exceeded our expectations, Chairman Soraj Asavaprapha said in an interview. There’s bullish optimism toward our new direction even though this is just the beginning.
Jasmine Technology has generated only eight Bitcoins from its 325 mining machines since operations were started a few month ago. Mr Soraj expects next year to be much more active, driven by plans to invest about 3.3 billion baht ($0.098 billion) in as many as new 7,000 devices. Revenue from the mining business will account for about 80% of the company’s total turnover by late 2022, he said.
We still have little idea about the company’s fundamentals, valuations and revenue projections because this Bitcoin mining is very new in Thailand, said Wilasinee Boonmasungsong, an analyst at Globlex Securities Co in Bangkok. It’s received a good welcome from investors for being the nation’s pioneer, but there is some regulatory risk.
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 crypto exchanges surged to 221 billion baht ($6.59 billion) in November, compared to 18 billion baht ($0.54 billion) a year earlier, according to the Securities and Exchange Commission’s data.
Local rules won’t affect Jasmine Technology, said Mr Soraj, as the company can sell digital tokens worldwide and the mining business will be profitable as long as the price of the world’s biggest cryptocurrency holds above $30,000. Bitcoin recently traded at about $51,000.