Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
Jasmine Technology Solution has seen a 436% jump in its net income in the first nine months from the previous year to 150 million baht ($4.4 million).
In July, Thai technology company, Jasmine Technology Solution Plc (BKK: JTS) announced its plans to expand into Bitcoin mining. Interestingly, the plan has been much welcomed as investors subject its stock to huge demand. Even though the crypto project has not yet generated any significant earnings for the company, it has seen nearly a 7000% surge in its stock from year to date.
According to Bloomberg, this rally is the most among global tech companies with a market value of more than $2 billion. The strong response comes as a surprise even to the company’s chairman, Soraj Asavaprapha. According to him, there is a strong optimism around their new direction despite this being the beginning.
Despite the positive response, the company has generated only eight Bitcoins from its 325 mining machines since starting operation a few months ago. According to Soraj, this will change next year as they plan on investing $98 million in about 7000 new machines. He expects the mining business to represent about 80% of the company’s total turnover in 2022.
Mr. Wilasinee Boonmasungsong, an analyst at Globlex Securities in Bangkok believes that Jasmine Technology Solution took advantage of the fact that Bitcoin mining is new in Thailand, and warned that there are some regulatory risks.
“We still have little idea about the company’s fundamentals, valuations, and revenue projections because this Bitcoin mining is very new in Thailand,” he said. “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 has previously stated that regulators have sought to protect the financial system and investors by introducing detailed rules to the digital asset industry. However, Soraj believes that the regulations will not affect Jasmine Technology. This is because the digital asset business would not only focus on the local market but worldwide. According to him, they can make some profits from their mining business as long as the Bitcoin price trades above $30,000. As of now, the company is making some decent earnings.
According to data compiled by Bloomberg, its stock trades near 500 times its trailing 12 months earnings. Also, Jasmine Technology has seen a 436% jump in its net income in the first nine months from the previous year to 150 million baht ($4.4 million). This is due to the rise in sales of the traditional telecommunication businesses.
Generally, there has been a positive response to crypto-related services in Thailand with the Securities and Exchange Commission (SEC) data revealing that turnover in seven locally licensed crypto exchanges surged to 221 billion baht ($6.5 billion) in November. A year earlier, the turnover was around 18 billion baht ($535 million) according to SECs.