Jasmine Technology, a Thai Tech firm experienced a remarkable surge in its share price after unveiling a Bitcoin mining unit. Presently, it is one of the best-performing companies in the global industry.
In July 2021, Jasmine Technology had revealed that it would launch a bitcoin mining unit, which outperformed its competitors in the global market. The company experienced a hike of 6,700% in its share prices, post the announcement, higher than other tech companies.
Surprisingly, the company did not swipe the market with the mining operation. The astounded chairman of the company, Soraj Asavaprabha, says, “The strong response from investors exceeded our expectations. There is bullish optimism for our new direction, although this is just the beginning.”
The company had been performing excellent before the announcement and then the plan of unveiling bitcoin mining was revealed. The third-quarter revenue hiked the share price even more.
With 325 mining machines, Jasmine Technology has generated only eight Bitcoins since the operations began a few months ago. The chairman, Soraj, anticipates the coming year to be more lucrative. There are plans to invest about 3.3 billion baht (USD 98 million) in as many as 7,000 devices. The Mining business is likely to procure 80% of the company’s turnover by late 2022, he said.
The net income of Jasmine Technology in the first nine months surged to 436% against the previous year to 150 million baht. The hike has been attributed to the expansion of its traditional telecommunication business.
“We still have little idea about the company’s fundamentals, valuations, and revenue projections because this Bitcoin mining is very new in Thailand,” says Wilasinee Boonmasungsong, an analyst at Globex Securities Co. in Bangkok. “It’s received a good welcome from investors for being the nation’s pioneer, but there is some regulatory risk,” he added.
The Bank of Thailand revealed that the regulators are likely to impose stricter rules to govern the digital assets to strengthen and protect the financial systems and investors. However, Soraj says that local rules will not affect Jasmine Technology since the company can sell digital tokens globally. As per the data published by the Securities Exchange Commission’s Data, the seven local crypto companies experienced a turnover of about 221 billion baht (6.58 billion) in November, against 18 billion baht in the previous year.
Jasmine Technology is one of the many Thai companies enhancing its reach into the realm of digital capital. Other than Jasmine Technology, AJ Advance Technology Pcl, Commercial Bank Pcl, and Kasikornbank Pcl have also taken the initiative to grow their reach in the cryptocurrency arena.
Related Report by A2Z Market Research: Global Blockchain Devices Market Research Report 2021 – Future Opportunities, Latest Trends, In-depth Analysis, and Forecast To 2028