JTS shares surge 6,635%
Costs skyrocket on Bitcoin mining plan
Shares of SET-listed Jasmine Know-how Options (JTS) skyrocketed 6,635% in 2021, spurred by its plan to ramp up its Bitcoin mining enterprise whereas many different corporations concerned within the cryptocurrency enterprise have additionally reported glorious returns that outperformed the market final yr.
Asia Plus Securities stated the share worth of JTS spiked from round 2 baht initially of the yr to 130 baht as of Dec 27, elevating the market cap of JTS from 1.1 billion baht to 91.84 billion baht throughout the identical interval.
The value surge displays the Thai cryptocurrency market’s rising inhabitants and traders’ enthusiasm.
In keeping with CoinDesk.com, Bitcoin reportedly generated returns of about 75% as of Dec 27. Its worth moved round $50,050 and peaked at $68,990 in November.
Takit Chardcherdsak, a analysis supervisor at Asia Plus Securities, stated JTS’s share worth is extra unstable than Bitcoin and outperformed the digital forex though the corporate must bear increased bills of sustaining and monitoring computer systems for mining and electrical energy payments.
“Cryptocurrency is a high-risk and extremely unstable asset. Traders ought to be cautious when investing in something concerned with the cash in addition to JTS as a result of its drastic worth leap,” Mr Takit stated.
Different listed corporations with investments in cryptocurrencies comparable to Brooker Group (BROOK) additionally noticed their costs surge. BROOK’s share worth rose 233% year-to-date and fluctuated all year long.
A number of shares concerned within the preliminary coin providing (ICO) enterprise additionally noticed a leap in progress final yr comparable to XSpring Capital (600%), Nation Group Securities (90%), Siam Business Financial institution (41%) and Kasikornbank (22%).
Moreover corporations with direct funding in cryptocurrencies and ICOs, corporations that settle for cryptocurrency as a cost methodology for his or her services and products additionally take pleasure in a rise in share worth though it is much less noticeable, besides Jay Mart whose worth was up 188%.
Different corporations from the group embody Main Cineplex Group (7.6%), Origin Property (7.6%), Sansiri (1.67%) and Ananda Growth (2%).
He stated the cryptocurrency market appears to proceed on an uptrend within the medium and long run this yr.
Among the many elements driving surges in crypto costs is wider acceptance as an middleman of cost.
The US Securities and Trade Fee additionally permitted Bitcoin-based change traded funds and different new merchandise associated to cryptocurrencies final yr.
Nonetheless, Mr Takit stated traders who’re focused on investing in cryptocurrencies in 2022 also needs to comply with the Federal Reserve’s course for its quantitative easing tapering and rate of interest hikes which is able to trigger huge fund mobilisation and market volatility.
Cryptocurrencies will change into extraordinarily unstable when there may be fund mobilisation as a result of their costs don’t have any ceilings and flooring and are more durable to regulate, Mr Takit stated.