For traders and investors in the equities markets, one theme has remained extremely difficult to find in terms of portfolio exposure: cryptocurrency mining. Very few companies have genuine exposure and constructing a diversified portfolio of equities with operational ties to the crypto mining theme has remained an elusive goal.
That’s why we want to focus on ISW Holdings Inc (OTCMKTS:ISWH) today.
A New Flavor
ISWH is a holdings company that has ties to a wide range of high-growth industries such as renewable energy, supply chain logistics, home healthcare, adult beverages, and the wellness industry. But, as a result of a groundbreaking new joint venture announcement that hit the newswires in May, ISWH is now one of the most interesting new vehicles through which investors can gain exposure to the cryptocurrency capital equipment marketplace.
Specifically, ISW Holdings just announced its entrance into a new venture with Bit5ive LLC, a global leader in cryptocurrency mining and innovative turnkey mining solutions.
“We are incredibly excited to expand our current portfolio and move into what we believe is a sector poised for strong technological and financial growth,” stated ISW Holdings President and Chairman Alonzo Pierce. “This new joint-venture agreement enables us to collaborate with the experienced team at Bit5ive to innovate the infrastructure needed to run profitable, efficient crypto mining projects, and to take advantage of the incredible growth projected for the crypto market.”
The Bit5ive Opportunity
While Bit5ive is one of the most explosive distribution points for leading mining equipment, but the company is not accessible to investors in any publicly traded form. In fact, at this point, ISWH is likely now the best avenue to gain exposure.
Bit5ive is an official distribution partner of Bitmain, the industry-leading fabless manufacturer of computing chips and distributor of Antminers to more than 30 countries in Latin America, Central America, and the Caribbean. In addition, Bit5ive is the producer and distributor of POD5 and Power Skid 2.5, the most efficient and successful infrastructure for crypto mining hardware.
At present, Bit5ive is quickly becoming one of the largest U.S.-based companies in the cryptocurrency mining and bitcoin farm industry. And its new relationship with ISWH has enormous potential given ISW’s recent successes in wellness, home healthcare, and its VOLUM supply-chain solution.
Why Now?
If it still isn’t clear why investors may want to start focusing extra attention on stocks that have the power to capitalize on exposure to the cryptocurrency mining space, consider the following.
In response to the market crash in March, the Federal Reserve announced a sweeping set of new and unprecedented measures to help prevent a further destabilization of the economy due to the forced shutdown in response to the spreading health crisis founded by the COVID-19 global pandemic.
These measures included allowing corporations with something approximating investment grade credit to issue new debt directly onto the Fed’s balance sheet. Since then, we have seen over 40 million jobs lost in the US alone. Publicly traded companies have universally stopped issuing earnings guidance for 2020. And default risk has spiked on corporate debt.
But the Fed’s measures – which were recently expanded to municipal debt, and also originally included residential and commercial mortgage lending and credit card debt – stopped the panic. They were also joined by massive fiscal stimulus measures.
In all, Bank of America analysts now estimate that we have seen over $18 trillion in total stimulus into the system since March – unprecedented by any framework of analysis.
What Now?
The question before us now is this: what happens to the world’s fiat currency system when policy authorities hit the gas pedal on money creation? How much of this can the traditional currency system take before the whole concept of money starts to become questionable?
Crypto assets can play an essential role during this period by providing a basis for allocation to something that cannot be compromised by excessive supply through policy panic.
However, to return to our original point: there are very few stocks in the stock market with genuine exposure to the upside in cryptocurrency mining. As the mining space expands in response to more demand for coins, mining equipment is likely to become a core investment theme.
And now, following its partnership with Bit5ive, ISW Holdings Inc (OTCMKTS:ISWH) is among a very limited and exclusive set of options for equity market investors looking to capitalize.
