Financial News

This Crypto Small-Cap May Not be Flying Under the Radar Much Longer (RIOT, BLQC, MARA, HIVE, MSTR, COIN, HUT, PYPL)

One of the areas in the market that has exhibited a protracted correction over recent months while still sporting powerful long-term growth prospects includes stocks with primary operations tied to digital currencies and blockchain.

Many if not most experts and top-tier analysts see decentralized finance, blockchain, and crypto as a single emerging leadership theme that could come to represent one of the most important opportunities for long-term investors over the next decade.

But investors chronically make the error of getting excited about leading growth themes when everyone else is excited, too. That leads to poor entries and unnecessary pain during inevitable pullbacks, forcing emotional decision-making and bad exits.

However, without that tendency, savvier investors wouldn’t have opportunities like we see in the market today, after stocks tied to blockchain and cryptocurrency strategies have already pulled back 50% or more.

The list is long, and includes stocks like Riot Blockchain Inc. (Nasdaq:RIOT), Marathon Digital Holdings Inc. (Nasdaq:MARA), Hive Blockchain Technologies Ltd. (Nasdaq:HIVE), MicroStrategy Inc. (Nasdaq:MSTR), Coinbase Global Inc. (Nasdaq:COIN), Hut 8 Mining Corp. (Nasdaq:HUT), and PayPal Holdings Inc. (Nasdaq:PYPL).

But one smaller player could be even more interesting for long-term-minded growth investors interested in the space: BlockQuarry Corp. (OTC US:BLQC).

BLQC is on the OTC, but it’s hardly a fly-by-night operation. The company has rapidly growing revenues, a sizeable asset base on the order necessary to uplist to a major national exchange like the Nasdaq, and partnerships with some of the most notable cryptocurrency and blockchain companies in the world.

BlockQuarry Corp. (OTC US:BLQC) has an interesting hybrid model with scaling self-mining operations mixed with one of the most impressive hosting startup operations in the US. The key here is that, unlike other major crypto mining operations, BLQC will continue to see rapid topline growth even if the price of BTC takes another sharp leg lower.

BLQC has already partnered with Bit5ive, North America’s largest provider of collective management services and mining equipment, and Bitmain Technologies, perhaps the largest and most successful overall company in the cryptocurrency space. 

The upshot is the development of one of the largest mining operations in the US over the next few years based on its hybrid model, with proprietary mining operations complemented by rapidly growing hosting operations.

This week, the company announced its financial and operational performance highlights for the twelve months ended December 31, 2021, as well as the full launch of its Phase One 20MW hosting infrastructure at its Southeast U.S. cryptocurrency mining site, which will drive approximately $9.5 million in annual revenues going forward.

“2021 was a breakthrough year for the Company, and the investments we made during that period are already starting to pay big dividends as we begin to collect on the implementation of our Phase One hosting infrastructure,” noted Alonzo Pierce, President and Chair of BlockQuarry. “The topline exploded higher last year, and the bottom line is set to swing in our favor sharply as we get past our major fixed costs.”

Financial performance highlights include explosive 1,600-plus percent y/y topline growth, a massive jump in cash holdings and total assets (up nearly 6,000% y/y to about $11 million), and a move into profitability on a net income basis.

According to its release, management sees 2021 as a foundational year of investment in capital, equipment, relationships, and power to drive significant financial performance in 2022 and the years ahead. Last year, the Company put in place several agreements with the potential to create enormous shareholder value over a long-term time horizon, including the Company’s hosting agreements, which guarantee significant steady cash flows irrespective of changes in the price of Bitcoin.

The company also streamlined its operational footprint by geographically consolidating operations into its Southeast U.S. site, while expanding its self-mining foundation by key equipment and asset acquisitions.

Pierce added, “2021 was a year of critical investments that are set to start paying this year and over coming years. And, given our hybrid model, we aren’t dependent upon the day to day oscillations in the price of Bitcoin. Phase Two implementation is next up!”

BlockQuarry Corp. (OTC US:BLQC) shares have been broadly outperforming the cryptocurrency space as well, tracking sideways over recent months, oscillating around the $1/share level. BLQC is up about 100% over the trailing 12 months, but down from its $3.50 highs recorded last fall. 

There are a number of significant potential upcoming catalysts waiting in the wings for BLQC, including a possible uplist to a major exchange and the launch of its phase 2 installation, which would ostensibly double revenues again.

 

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