But there were several more profitable ways to ride the bitcoin train, and one of these was to buy listed bitcoin miners.
Results for the first quarter of 2021 shows the company mined 548 bitcoin in the first quarter worth about $32.4 million as of March 31, and added 4 500 mining rigs to its fleet.
The company’s platform allows users, either retail or institutional, to place and route trade orders to one or several trading exchanges to buy or sell cryptocurrency assets.
The surge in the prices of these crypto assets in the first half of 2021, notwithstanding the recent correction, will have pushed up revenue and margins.
Riot Blockchain recently announced that it is selling 2.2 million shares of Canadian crypto exchange leader Coinsquare to Mogo in exchange for 2.3 million shares of Mogo.
This stock is up 300% over 12 months and down 60% since its March peak.
Results for the first quarter show strong growth in transaction volumes through the exchange, though the recent crash in crypto prices will likely impact revenues in the second quarter.
Investment bank Raymond James recently issued a report valuing the company at $95 a share, well below its current price, based primarily on Coinbase’s vulnerability to competition from companies like Kraken, which is also contemplating a stock exchange listing.
Saylor has argued persuasively that bitcoin – with its hard cap of 21 million coins in issue – is the perfect antidote to the guaranteed depreciation of the US dollar and other fiat currencies.
Though profitability deteriorated in 2020 as a result of Covid-induced supply chain disruptions, the order book for 2021 looks robust.
Square is the electronic payments company founded by Twitter CEO Jack Dorsey and is reckoned to have about 3% of the $150 billion digital advertising market.
It announced that it would increase its ownership in Canada’s leading crypto trading platform, Coinsquare, to 37% while retaining a warrant to increase ownership up to 48%.
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