Jasmine Tech Solution Pcl share value has more than tripled in value since the plan was released in late July, although the crypto project has yet to produce significant revenue for the firm. Year-to-date, the stock increase is almost at 7,000%, most among global tech businesses with a market value of at minimum $2 billion.
“The strong response coming from traders has exceeded our expectations,” said Chairman Soraj Asavaprapha. “There is a lot of bullish optimism coming from our new direction even though it’s still very new.”
Jasmine Tech is just one of many Thai businesses diversifying into the digital-asset space. Consumer-appliance producer AJ Advance Tech Pcl recently announced its inaugural investment in BTC mining. Kasikornbank Pcl and Siam Commercial Bank Pcl have invested in crypto startups as well.
Enthusiasm for cryptocurrency products, especially among young traders, has driven investments in locally-licensed exchanges to a round of new record highs.
Jasmine Tech has mined only around eight Bitcoins from the 325 mining machines it has operated since a few months ago when the operations began. Soraj thinks that next year will be a lot more active, driven by its plans to invest in around 7,000 new devices which will cost about 3.3 billion baht. Earnings from the mining company will account for around 80% of the business’ total turnover maybe within the next year, he said.
“We still do not know much about the company’s valuations, fundamentals and revenue projections because this BTC mining is new in Thailand,” stated Wilasinee Boonmasungsong, who is an analyst from Globlex Securities Co. in Bangkok. “It has received a great welcome from traders for being the country’s pioneer, but there’s some regulatory risk.”
Last month the Bank of Thailand said that regulators have plans to release more detailed rules regarding digital assets to help protect the financial system and traders.
Local rules will not have any affect on Jasmine Technology, stated Soraj, as the company can sell digital coins worldwide and the mining company will still be profitable as long as the value of the world’s largest crypto holds higher than $30,000. BTC recently traded at around $51,000.
Jasmine Technology’s net earnings in the first nine months increased 436% from a year before to 150 million baht as the sales from its normal telecommunications-related companies increased. The stock value, which hit a record high earlier in the month, trades at almost 500 times its trailing 1-year earnings.
Author: Scott Dowdy