Thai tech company Jasmine Technology has seen its stock shoot up nearly 7,000 percent year-to-date after venturing into Bitcoin mining.
Despite speculations on tougher crypto regulations in the country, the firm’s chairman is confident its crypto operations will remain unaffected.
A Thai tech company has made a record-beating shares rally following its new endeavour into Bitcoin (BTC) mining. Jasmine Technology Solution PCI announced the new venture to its investors just 5 months ago. At the time, BTC was valued at around $30,000, whereas it now trades at around $50,000. And even though the plan has generated just 8 Bitcoin, the firm’s stock has drastically risen in the period since July.
Shares have surged nearly 7,000 percent year-to-date, something that has come as a surprise to the company’s chairman. Per Bloomberg data, this leap is one of the biggest among tech companies with a valuation of at least $2 billion.
“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.”
Company to extend Bitcoin mining operations next year
Since operations commenced a few months ago, Jasmine Technology has been using 325 mining gear. The company plans to revamp its operations next year, spending as much as 3.3 billion baht ($98 million) on 7,000 new mining equipment. According to Soraj, by late 2022, 80 percent of the company’s total turnover will be derived from its Bitcoin mining revenue.
Jasmine Technology is among many Thai companies that have decided to place their stakes in crypto-related investments. Another company newly dabbling in Bitcoin mining is the consumer-appliance maker AJ Advanced Technology. Last month, Siam Commercial Bank acquired a majority stake in BitKub – one of the few licensed crypto exchanges in Thailand. This month, Kasikornbank invested in a leading Thai digital asset advisory and investment business.
In recent times, Thai investors, especially those in younger generations, have shown a growing interest in digital assets. Locally-licensed crypto exchanges have, in turn, witnessed new trading record highs. The turn-over in seven locally-licensed exchanges rose to 221 billion baht ($6.58 billion) in November, from 18 billion baht a year earlier, according to the nation’s Securities and Exchange Commission (SEC).
Consequently, regulatory attention has shifted to these setups and tighter rules have come forth. Binance, for instance, had criminal complaints filed against it for operating without a license in Thailand. The Bank of Thailand warned of more stringent regulations last month, aimed at protecting investors and the country’s financial system.
Crypto regulation is no threat to Jasmine tech
“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.
However, Soraj is confident Thai directives will have zero effects on Jasmine Technology since it can sell digital tokens outside Thailand. Additionally, its mining operations will stay profitable so long as BTC remains above $30K, he adds.
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