After Bank of America Corp. (NYSE:), the price of was again higher than USD 50,000. Strategists have supported crypto as an asset class. Bloomberg reported that Bitcoin’s latest rally has seen it break through two important resistance levels. According to Arcane Research, Bitcoin is trading at the upper end of its 2-month-long consolidation range. Bitcoin traded at USD 45,000 and then broke out. That means the USD 46,000 – USD 48,000 range is a strong support level and the coin could trade in that area for some time, the report said. ISW Holdings Inc., OTC: ISWH, Riot Blockchain, Inc., Hut 8 Mining Corp., NASDAQ NASDAQ :), SOS Limited, NYSE: SOS, Sphere 3D Corp. (NASDAQ : ANY)

This increase in the price of Bitcoin comes despite China’s full-blown crackdown on cryptocurrencies. The Wall Street Journal reported that Huobi Global, which is one of the world’s largest cryptocurrency exchanges, said it would close all user accounts in mainland China by the end of the year, just days after the country’s central bank declared all crypto-related transactions illegal. The exchange will also gradually retire existing accounts in China by the end of 2021 to ensure the safety of its customers’ assets. However, the cryptocurrency miners have begun to adapt to these new conditions and are now moving to other countries that accept digital currencies as well as the associated mining operations.

ISW Holdings Inc. (OTC: ISWH), transitioning to “BlockQuarry,” pending name change, announced last month for current and prospective shareholders with a more detailed discussion about, “the Company’s recent landmark deal with Bitmain Technologies (“Bitmain”), the world’s leading producer of cryptocurrency mining hardware and a leading global cryptocurrency mining firm.

Maximum Mining Capacity (TMC) and Launch Date. The deal will involve 56,000 Bitmain mining rigs pairing with 200 megawatts (“MW”) of power at the Company’s “POD- CITY” location in Georgia. By October 2021, the Company will have 20 MW power in combination with its rigs. It is expected that all 56k miners would be connected to all 200 MWs of power, and fully operational by October 2022.

Estimated Topline Revenue Impact. According to the Company, this complete complement operating at maximum capacity can generate annual revenues in excess of $100 millions (more than $10 million per monthly for ISW Holdings/ BlockQuarry) in hosting services fees. This does not depend on the price of cryptocurrency.

Key Partners. The partnership is tripartite, between Bitmain, ISW Holdings, and Bit5ive, LLC (“Bit5ive).

Bitmain will provide capital and mining equipment, as well as expertise. Bitmain will consume hosting services, power, and up to 200 MW over a 5-year period.

Bit5ive can bring you power, web hosting and project management expertise.

ISW Holdings can provide expertise, financing, hosting and mining services as well access to the power grid.

The costs involved. ISW Holdings estimates that the total cost of the complete roll-out for setting up and activating 200 MW of mining machines will amount to $62,000,000. Six million dollars of that amount has been already paid. $56 millions remains.

Current Mining Operations (excluding Bitmain deal). The Company is currently running 700 miners, representing a mix of Bitmain Antminer S17’s, BitMain S19 95TH/ s’s, and Canaan Avalons. Those miners are running in POD5 units in Stronghold,Pennsylvania at a site managed by Bit5ive. With current capacities, the current hashrate stands at 36,000 THB/s. There is upside potential for 54,000 THB/s. The operational state could produce annual revenues in the range of $4.8 to $6 million, based on current 3-month-trailing average prices for major cryptocurrency markets. As the company grows, it is expanding its mining operations.

Management Commentary. ‘The nature of our business changed significantly last summer when we partnered with Bit5ive and began designing state-of-the-art mining pods with a bold vision and a deep conviction in the value proposition of the cryptocurrency marketplace,’ remarked Alonzo Pierce, President and Chairman of ISW Holdings. ‘Now, just a bit over a year later, we are on the verge of becoming one of the top players in the cryptocurrency world after bringing Bitmain to the table in a deal that will see all parties unlock significant value. Our hosting services revenues are expected to be strong and stable in the future. Our mining revenue will also fluctuate depending on the price of cryptocurrency. This will provide us with strong growth and a substantial non-volatile component. We should be able to fulfill the requirements for transferring shares to major exchanges that are nationalized. There are many other catalysts that we have in development, so I am looking forward to sharing more information in the near future.’”

Riot Blockchain, Inc. (NASDAQ: RIOT) announced earlier in June its May production and operational updates, including its unaudited Bitcoin (“BTC”) production for May 2021 and its latest miner delivery status. Through the year 2021, the Company will continue providing monthly updates as well as unaudited production results. These updates are intended to keep shareholders informed of Riot’s mining production as it continues to deploy its expanding miner fleet. On May 26th, 2021, Riot announced it completed its previously announced acquisition of Whinstone U.S. (“Whinstone”). Whinstone’s Bitcoin mining facility in Rockdale, TX is the largest Bitcoin mining facility in North America, as measured by its 300 MW in developed capacity. Whinstone announced plans to accelerate its development of more capacity to increase its capacity to 750 MW. This expansion will be driven by Whinstone’s industry leading development team of over 100 employees.

Hut8 Mining Corp. (NASDAQ: HUT) announced last month its financial results for the quarter ending June 30, 2021 (“Q2-2021”) Hut 8 continues to strategically emphasize its “hodl” strategy, taking active steps to generate Canadian and US dollars to help fund operating expenses, so as to avoid selling Bitcoin. 100% of the self-mined Bitcoin went into custody during Q2-2021. At June 30, 2021 the Company had a Bitcoin total balance of 3,824 having a market price of $166 millions. Hut 8’s current Bitcoin balance, including 2,000 Bitcoin loaned as part of the Company’s fiat yield strategy, is approximately 4,240 Bitcoin, reflecting a market value of approximately $245 million. Hut 8 currently has an installed hashrate of 1.37 exahash (“E/H”). Due to pending orders we now have additional contracted hashrate at 1.3 E/H, which includes 1,600 gigahash equivalent. This brings the contracted hashrate up to around 2.7 E/H. Based on current network dynamics, we anticipate daily settlement once all contracted equipment is hashing will equate to 20 – 25 Bitcoin per day.

SOS Limited (NYSE: SOS) reported back in June that it has entered into a joint venture agreement with Niagara Development LLC (“Niagara Development”), a New Jersey limited liability company, for a joint venture to be based in Niagara, Wisconsin. Joint venture FD LLC will be responsible for crypto-currency operations and the construction of an international standardized Digital Super Computing Custody Operation Center. Niagara Development is responsible for providing electricity up to 150MW including renewable energy. SOS will oversee the operation, financing and management of the joint venture. SOS is committed to the block-chain strategy it has developed and will continue to strive for sustainability in the sector.

Sphere 3D Corp. (NASDAQ: ANY) announced this June that it has entered into an Agreement and Plan of Merger with Gryphon Digital Mining Inc. (“Gryphon”), a privately-held company focused on the mining of bitcoin using renewable energy. The Company’s name will be changed to Gryphon Digital Mining Inc. after the merger is completed. The merged company will focus on expanding Gryphon’s digital mining operations and utilize Sphere 3D’s proprietary enterprise solutions to optimize Gryphon’s processes. “Gryphon’s future focus on mining using 100% renewable energy will set the bar for mining companies of the future. We have been engineering GPU-based converged systems for many years and are excited to leverage our experience to enhance the performance of Gryphon’s operations. We believe the merger of the two companies provides an excellent opportunity to create meaningful value for our shareholders,” said Peter Tassiopoulos, Sphere 3D’s Chief Executive Officer.

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