Thai technology company Jasmine Technology Solution surprised its chairman with its record-breaking share rally after it unveiled its plans of expanding into Bitcoin mining.
The company’s stock has tripled in value after the plan was announced in July this year. However, its cryptocurrency mining project has yet to generate significant income this year. The market value of the shares increased by nearly 7000 % on a YTD basis to $ 2 billion, the maximum by any tech company globally as per Bloomberg Data.
In an interview, Chairman Soraj Asavaprapha said that the investors exceeded the company’s expectations.
Jasmine Tech is one of the many companies in Thailand that is diversifying into the digital assets space. AJ Advance Technology Pcl, a consumer appliance manufacturer, announced its first investments into Bitcoin mining this month. Kasikornbank Pcl and Siam Commercial Bank Pcl have taken exposure in cryptocurrency start-ups.
Young investors’ enthusiasm for crypto products has driven trading volumes to a new high in local exchanges resulting in regulators proposing tighter rules.
Jasmine Tech started its mining operations a few months ago and, so far, has generated only eight Bitcoins from its 325 machines. Chairman Asavaprapha expects 2022 to be more active as it plans to invest $98 million (3.3 billion Baht) in at least 7000 new machines. The revenue from the mining business will be 80% of the company’s total turnover by the end of 2022.
According to Wilasinee Boonmasungsong, an analyst with Bangkok Based Globlex Securities, there is little information on the company fundamentals, projections, and valuations because Bitcoin mining is still new in the country. Though the investors have welcomed it, there are regulatory risks.
Bank of Thailand had informed last month that the regulators are planning to issue detailed rules for digital assets investment to protect the investors and financial system. The security exchange data showed the turnover of seven licensed cryptocurrency exchanges grew to $ 6.58 billion (221 billion Baht) last month compared to 18 billion baht a year ago.
Jasmine Technology won’t be affected by local rules, and it can sell digital tokens globally. Its mining business is expected to be profitable if Bitcoin remains above the $ 30,000 level, and the world’s largest crypto was trading at $ 51000 recently.
Jasmine Tech’s net income for nine months in 2021 jumped by 436% from its previous year to 150 million Baht as it increased its sales in the traditional telecom-related businesses. As per data compiled by Bloomberg, the stock which reached a record high price in November is now traded at 500 times its earnings for the 12 months.
