In light of the most recent cryptocurrency bull run, there has since been a surge of demand for digital assets throughout the space. Companies are keeping up with this surge in demand by constantly innovating in terms of their offerings of allowing consumers to obtain these digital assets through crypto mining operations.
New Developments
Payment processor Mastercard Incorporated (NYSE: MA) most recently broke into the digital asset space, announcing their release of a crypto rewards card. But before any transactions with crypto can be made, they need to be mined. Companies like Nvidia Corporation (NASDAQ: NVDA), Argo Blockchain plc (OTC: ARBKF), SOS Limited (NYSE: SOS), and Hello Pal International Inc. (CSE: HP) (OTC: HLLPF) are providing equipment and infrastructure for investors to mine their own cryptocurrency.
Paypal CEO and President Dan Schulman, in an interview with Time magazine, predicts a sharp decline in the use of cash, while also reiterating the recent surge in demand for Cryptocurrency:
“Demand on the crypto side has been multiple-fold to what we initially expected. There’s a lot of excitement.”
The aforementioned live streaming platform Hello Pal International (CSE: HP) (OTC: HLLPF) experienced an unprecedented surge in traffic over 1000%, leading to a temporary outage after announcing their entry into the cryptocurrency mining world. Hello Pal International’s entry into the space was particularly focused on mining operations of Dogecoin and Litecoin. Hello Pal Founder and Chairman, KL Wong states:
“We’re ecstatic that our choice of cryptocurrencies to mine seems to have been validated especially by the recent incredible surge in market interest and activity in Dogecoin. As far as we are aware, upon completion of this transaction, we shall be the only publicly listed company with primary exposure to Dogecoin”.
The surge in traffic on Hello Pal’s platform is certainly understandable, given that Dogecoin has surged to a market cap of $40 billion, breaking out from being a “meme currency” to a valid way for investors to generate returns.
Hello Pal gained access to an additional 12,500 mining rigs dedicated solely to DOGE and Litecoin (LTC), thanks to a recently signed agreement. Alongside their partners, Hello Pal now has over 40,000 miners available to its users, allowing for the mining of BTC, ETH, DOGE, and LTC.
Hello Pal offers users the option to own or partly own cryptocurrency mining rigs, allowing for a very streamlined way for new mining entry.
Another recent development in mining operations is NVIDIA Corporation’s (NASDAQ: NVDA) CMP 40HX mining card. According to recent test operations, the CMP 40HX’s performance is very close to the RTX 3060, a Nvidia card popular among gamers. The CMP 40HX’s performance can roughly match the hash rates obtained by the 3060 when used with a leaked driver that allows the card to bypass the company’s mining limiter.
In turn, miners may be more inclined to purchase this newer card, retailing for around $699. The card manufacturers are predicting a profit margin of around $150 million on orders in the first quarter of the year.
London-based Argo Blockchain plc (OTC: ARBKF) has also agreed to a deal to construct a mining facility in Texas. Co-developed by mining designer Navier, the facility will be located in Helios, Texas, and will support 200 megawatts of mining. Argo Chief executive Peter Wall speaks on the development of this new facility:
“Argo intends to build state-of-the-art mining infrastructure which will not only provide greater control over our operations but also meaningfully expands our mining capacity… At this facility we believe we will have access to some of the cheapest renewable energy worldwide.”
Chinese-based SOS Limited (NYSE: SOS) also announced that it would be adding another 575 crypto mining rigs, as they look to expand their mining operations. Vice-Chairman Russel Kraus stated that SOS had over 10,000 miners, half of which are already delivering BTC revenue. Chairman of SOS, Yandai Wang speaks with regards to the expansion of these mining operations:
“Although the cryptocurrency prices, such as BTC prices, might continue to fluctuate, we believe the big general trend for and cycle of cryptocurrencies are still upward… As institutional investors have been becoming one significant driving force behind cryptocurrencies, such as BTC and ETH, which will be utilized as a hedge against ongoing quantitative easing by sovereign currencies, therefore, we remain committed to be very confident about our long-term strategic investment in cryptocurrencies operation.”
Lastly, Mastercard Incorporated’s (NYSE: MA) new deal with popular crypto exchange Gemini to launch a crypto loyalty rewards program is making waves in the space. Starting this summer, users of the card will get 3% back in bitcoin or other cryptocurrencies on the digital currency deposited within the Gemini account. Gemini has already announced a waitlist for the new metal card, which will have no Annual fee.
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