You’re witnessing a perfect storm.
Perfect. Unexpected. And wildly profitable.
In mid-May, Elon Musk sent shockwaves through the crypto world with one tweet.
Overnight, clean energy becomes the most important issue in the Bitcoin community.
Shortly after and completely by surprise, China bans Bitcoin and starts pulling the plug on miners across their country.
With China housing half of the world’s Bitcoin production, their surprise crackdown threw the global community into jeopardy.
And while the market was demanding clean energy solutions, American miners now found themselves in the crosshairs of public scrutiny… causing investors to worry.
So these two events, The Elon Musk Tweet and China Ban, flipped the monopoly board for Bitcoin and most Crypto stocks…
But these same events were the best thing that could have happened for one company in particular…
One which was both US-based and focused on clean energy Bitcoin mining long before it was important to Elon Musk or the community at large.
That’s this month’s featured stock: Bitcoin-mining powerhouse — EcoChain(NASDAQ:MKTY) — a company already capitalizing on the two biggest trends in Bitcoin this year.
As a profitable, growing, and asset-rich Bitcoin mining company that uses only eco-friendly energy, no other stock is better poised to take advantage of these current trends…
In fact, they’ve had to repeatedly update their revenue projections since they keep blowing past them this year…
As their competition sees slimmer profits, EcoChain(NASDAQ:MKTY) continually reports higher returns…
They’re cashing in on lucrative partnerships with clean energy suppliers while their competition suffers a backlash from dirty energy use…
And they’re rolling out new mining operations while their competition was forced to downsize and move operations.
THIS is what an undervalued growth stock looks like…
Just HOW BIG Is Bitcoin Mining?
Answer: Huge. And unbelievably profitable (as in 5-7X returns…)
Bitcoin’s Market Cap is $608 Billion
And its very existence depends on miners…
Who are Bitcoin miners and what is Mining?
Simply put, they’re like the bank tellers of the Bitcoin system, verifying and securing transactions between Bitcoin users.
And in return, Bitcoin miners are rewarded in Bitcoin which they sell at a profit.
How the Bitcoin system works is the more miners that are mining on the system, the more energy and computing power are required to be rewarded Bitcoin.
For perspective, 10 years ago, mining a single Bitcoin required only a few cents in energy costs because there were so few transactions and active traders in the Bitcoin ecosystem.
But NOW it costs thousands of dollars to mine Bitcoin due to having millions of Bitcoin users. The exact costs depend on a number of factors:
- Energy costs
- Computing and equipment costs
- Mining Competition(which China made much more profitable by banning Bitcoin there)
Why Bitcoin Mining Stocks are a Better Investment Than Bitcoin
Bitcoin reached a high of $60,000 earlier this year.
In the aftermath of the Elon Musk tweets and The China Ban in May, that price crashed to the current $30,000 range.
Half the value was completely wiped out for Bitcoin investors.
Here’s the catch: It only costs between $4,000 and $6,000 to mine a single Bitcoin.
That means even after Bitcoin lost half its value, miners are still operating with a 5-6X return on investment!
Companies like EcoChain(NASDAQ:MKTY) are bringing on more mining equipment and expanding their operation…
So their stock continues to hold value even after the price of Bitcoin dropped.
While many analysts predict the price of Bitcoin will reach $1 million(30X current value), it will certainly experience a ton of volatility along the way — up over 1000% in 2020, and down 50% so far this year.
And again, Bitcoin mining continues to be incredibly profitable regardless of that volatility, protecting investors from downside price risk that Bitcoin has.
That’s why EcoChain(NASDAQ:MKTY) is still up 1000% since this time last year.
And its growth is literally just getting started. They’re set to double the size of their operations by the end of this year alone.
Bitcoin mining will continue making huge profits even if Bitcoin crashes again.
This makes Bitcoin mining stocks the smartest way to participate in the cryptocurrency boom predicted to continue over the next decade.
This Highly Accurate Model Predicts $1,000,000 Bitcoin Price by 2025
One of the most trusted financial models for evaluating the price of commodities such as Gold is known as the “Stock-To-Flow” model, where the amount of Gold mined each year is compared to the amount of Gold outside the ground already.
For Bitcoin, which is a digital commodity, this compares current Bitcoin mining production to total supply, and predicts the price of Bitcoin based on its built-in increasing scarcity every 4 years – it’s been incredibly accurate so far in predicting the growth of Bitcoin.
And here’s the mind-boggling part: This model predicts Bitcoin will hit $1 Million in the next 4 years.
Imagine what kind of returns that would mean for early investors in Bitcoin mining companies.
The numbers are staggering.
How China and Elon Musk Are Igniting The US Crypto-mining Boom
Elon temporarily became the unappointed cult leader of cryptocurrency when he announced Tesla would accept Bitcoin as payment, which sent the Bitcoin price skyrocketing like a SpaceX rocket.
He then became an abusive cult leader when, on May 12th, he announced Tesla would no longer accept Bitcoin due to its negative environmental impact.
But all the effects weren’t negative.
The fact is, China was responsible for 50% of the Bitcoin mining and a lot of their energy sources used coal.
It also inspired a new way for miners to shift towards green energy.
China Gets Involved…
Within a couple of weeks of Elon Musk’s tweet, China followed through on their decade-long threat of banning Bitcoin.
They went so far as cutting power to anyone suspected of mining.
And since 50% of all Bitcoin mining has been coming out of China, the effects have sent a shockwave across the cryptocurrency world.
Nonetheless, this cataclysmic event has had major consequences. And while it affects the price of Bitcoin, it also benefited non-Chinese Bitcoin mining companies like EcoChain(NASDAQ:MKTY).
Because even with Bitcoin’s dip in price, there’s less competition, so it’s still WILDLY profitable for miners. It still only costs between $4,000 and $6,000 to mine (depending on where in the world it’s done) and a single Bitcoin is still trading around $30,000.
Quick Math: Mining Bitcoin still returns 5-7X on investment for major Bitcoin miners.
For a rough perspective, up to 90% of all bitcoin operations in China are predicted to get wiped out. And with energy utilities cutting power to anyone suspected of mining Bitcoin…
As in any other business, less competition has led to more profits. It’s become WAY cheaper to mine!
Major Chinese Bitcoin players have had to unplug and move… and US miners are cashing in on the
*Additionally, many of these Chinese miners are having to cover their transition costs by selling off their Bitcoin. This is further contributing to a temporary dip in the price of Bitcoin.
Miners relocating their entire operation is no small task. It may take a majority of them up to a year to be fully operational again in Bitcoin-friendly destinations like Russia, Iran and Texas…
Leaving a HUGE vacuum that other mining operations are cashing in on!
Decreasing Mining Costs = Increasing Profits
The Bitcoin system incentivizes miners to keep the system working — it does this by rewarding Bitcoin to miners for the work they do.
Rewarded Bitcoins are distributed among the miners, so the more miners that compete for Bitcoin, the higher the energy cost to mine 1 Bitcoin.
This maintains a balance in the Bitcoin “ecosystem”.
Since China banned Bitcoin mining which accounted for about half of all miners, US-based miners like EcoChain(NASDAQ:MKTY) are enjoying a windfall of profits due to slimmer competition.
This reduced competition is expected to last for up to a year.
And profit margins are now far greater than initially predicted for EcoChain(NASDAQ:MKTY)
Encouraged by the world’s renewed focus on clean energy, EcoChain has blown past its revenue projections and with multiple new mining centers slated to launch this year. The future looks lucrative.
The Company That’s Ready To Capitalize On All Of This
EcoChain(NASDAQ:MKTY) has its roots in energy-efficient machinery and fine instrumentation.
Simply put, when Bitcoin mining came around as a profitable endeavor, their entire business model and infrastructure were already in place to dominate in the field.
Most notably, they’ve parlayed their vast resources and high-tech operational experience to expand their powerful foothold in the cryptocurrency markets.
All that combined with their tremendous mining capacity, they’ve consistently exceeded revenue projections.
This has kept them especially attractive for strategic partnerships and acquisitions with huge players across the crypto and energy sectors.
They Expanded Heavily Into Bitcoin Mining
Why? Because Bitcoin mining isn’t an art. It’s a science that requires two things:
- Lots of computing power
- Tons of energy
These just happen to be the two things EcoChain can readily access.
EcoChain(NASDAQ:MKTY) has both heavy-duty computing infrastructure AND major partnerships with clean energy providers.
They’ve been in the fields of energy efficiency and clean energy long before it was even a blip on the media’s radar.
Access to abundant green energy sources made Bitcoin mining a lucrative business for them to expand into.
In other words, if you’re looking to invest in Bitcoin mining while the world moves warp speed towards clean energy solutions…. You’ll want a stake in EcoChain(NASDAQ:MKTY).
How They’re Delivering on Eco-Friendly Mining
EcoChain(NASDAQ:MKTY) has a multi-prong approach to their clean energy mining operations.
Their Clean-energy policy includes:
- Purchasing excess energy from wind farms
- Taking wasted power from utility grids
- Purchasing carbon credits to offset the environmental impact
- On target to be carbon neutral by end of year 2021
Their newest mining location, dubbed Anaconda, will be opening up on a 100% renewable energy site, set to go live this October.
Having clean energy practices like these in place gives a mining company a strong footing in today’s business climate, where investors and consumers are growing more conscious of their environmental impact.
With the whirlwind of media surrounding the sustainability of Bitcoin mining and with China banning half its mining competitors, EcoChain is capitalizing on multiple global trends.
And it’s paying off in a big way…
Profits, Profits, Profits
EcoChain has delivered a 47% revenue jump compared to the same time last year
In the first quarter of 2021, revenues were $2.3 million — a 47% increase, or full $700 thousand over the $1.6 million for the same quarter last year.
The increase in revenue was driven by the establishment of the EcoChain line of business.
Operation costs are going down further
Cost of revenue (infrastructure, energy costs, overhead) for Q1 of 2021 was $328 thousand, or 33% of revenue.
This is a huge improvement over the $149 thousand or 40.1% cost of revenue for Q4 of 2020.
With mining becoming cheaper and their infrastructure growing more energy-efficient, these profit margins are set to improve beautifully in the coming quarters of 2021.
$15 million in unspent capital
Their most recent round of fundraising gave them an additional $15 million to allocate for expansion.
Once we know which projects this money will be allocated to, it will likely bolster the revenue projections for the rest of the year and well into 2022.
Early investors in MTI are increasingly bullish on their position, with many predicting a 400% – 600% increase in stock value over the next few years:
Multiple Mining Locations(with more opening up this year)
They’re currently cash flow positive in two locations with profit margins continuing to grow.
Profit margins are due mainly to two factors:
- Increasing energy efficiency
- Less miners from China means more lucrative mining in the upcoming quarters
With two active mining locations and two more slated to open before the end of the year, doubling their operation size is going to set them up for explosive growth.
Site 1: TNT
As they continue to optimize infrastructure and energy efficiency at this facility, it has repeatedly exceeded revenue projections.
This site is important as it has been the blueprint for how we run every location and our model for returning capital at each location
Most encouraging is that they’ve returned all investment from this location in under 12 months.
Furthermore, they’re expecting to double the ROI in just 18 months. At that rate of growth, we can expect big numbers in the coming quarters.
Site 1: Columbia River Basin
EcoChain’s first investment is in a mine running off the power of a 100% green, hydroelectric power from a 1,300MW dam.
The mine has the potential to operate at 3.3MW based on one of the lowest-cost clean power sources in the world.
Site 3 & 4: Two More Sites Live This Fall
- Site preparation and construction commenced
- On target for energizing in September and fully deploying equipment in October
- Financial results ramp accordingly
- Awaiting final purchase approval
- Have constructive engagement
- Interim operating agreement allows them to build equipment and start operations before sale is finalized
More locations are set to be announced in the coming weeks…
They’ve grown 35% while their competitors struggled
The stock has outperformed nearly every other Bitcoin mining stock there is.
Many investors believe it’s an extremely undervalued stock.
As we explained before, the profit margins for Bitcoin are far greater than a few months ago. This makes the next 6 months perfect timing as EcoChain(NASDAQ:MKTY) expands their facilities and ramps up production.
With the diminished competition from China and the global fervor around clean energy, EcoChain(NASDAQ:MKTY) could be poised to strike gold.
One point to mention is that many other Bitcoin mining stocks have dipped along with the Bitcoin crash. EcoChain has maintained investor enthusiasm through this major transition.
And this is reflected in its stock price rising 35% while they expand their operations.
Where Other Bitcoin Miners Drop the Ball… and why EcoChain Could Soon be 5X or 6X Current Valuation
Most of all big Bitcoin miners are surviving the cataclysmic events of May(Elon Musk Tweet and China Crackdown).
However, many of those companies are dealing with some major problems…
While researching for this article, we discovered that many of these Bitcoin miners are having to do serious PR damage control…
This is due to the majority of them using coal as a primary energy source.
Now the media and public are dragging these companies through the mud for the negative environmental impact their Bitcoin mining has.
And like we said, mining is no small industry. Bitcoin mining uses more energy than the entire country of Argentina.
So it’s a major contributor to pollution.
Since these companies are having to deal with stagnating stock prices and gun-shy investors over clean energy issues, EcoChain has been picking up all the momentum their competitors are losing…
But that’s not the only positive indicator of this company — not by a long shot.
What you also have to consider is how undervalued EcoChain is. We calculate this by comparing their market cap to their current earnings.
When we look at some of the biggest players in Bitcoin mining, we see some very encouraging indicators for EcoChain(NASDAQ:MKTY)
Take Marathon Holdings for example: They currently have a market cap of $2.8 Billion while their revenue is only 3X that of EcoChain’s.
EcoChain(NASDAQ:MKTY) has a market cap of $93 Million and is rapidly increasing their earnings projections, along with rolling out new operations and mining locations.
And that’s not even taking into account how much of an impact the clean energy frenzy is going to benefit them.
You see, EcoChain(NASDAQ:MKTY) is already a clean energy miner while their competitors are desperately SCRAMBLING to phase out coal energy.
But that’s easier said than done… and it takes a lot of time and money.
So EcoChain can just profit off all the lost market share their competitors are suffering due to these new mega trends.
Look what similar Bitcoin mining companies have delivered for investors since just 18 months ago
Hut8 has seen a 5X increase in its stock price in the last 18 months
And other Bitcoin mining companies have delivered even better returns for early investors.
The good news is we’re still early for EcoChain. Its PE ratios are much more appealing than these other companies that already got massive attention.
While their competitors recently suffered due to their unsustainable mining practices and their China mining operations, EcoChain is poised for explosive growth due to their exclusive use of renewable energy and never having any Chinese mining locations.
And multiple investment groups are predicting their stock could shoot up 400-600% over the next few years.
Let us be clear: The reason this is such a hot opportunity right now is because of how low their market cap is in comparison to their earnings. (relative to other Bitcoin mining stocks)
That’s why we estimate they could be valued at 3-6X what they are today.
Possibly increasing far more…
The Future Looks Bright
All the proverbial stars have aligned for the next year to be an explosively profitable bull run for EcoChain(NASDAQ:MKTY)
At the start of this year, they projected an EBITDA of $15-20 million, but since the mass exodus of Chinese miners has made mining a more profitable for the next year, their EBITDA projections have jumped to $25 million.
With two new locations — dubbed Python & Anaconda — slated to go live this Fall, we can expect to see their operation grow exponentially as Bitcoin recovers and they secure more clean energy providers.
Poised For Huge Profits For 2021
EcoChain(NASDAQ:MKTY) epitomizes being in the right place at the right time.
They’re a clean energy mining company right when Elon Musk sets the world on fire about the need for sustainable mining practices.
They’re ramping up production with even larger mining locations at the exact moment that China’s miners are out of commission, which makes mining far more profitable than anyone predicted for the next year.
And to top it all off, operations are becoming more energy efficient, further increasing their profit margins and projected revenues… and return on investment.
We’re seeing them consistently exceed revenue projections. The investor buzz is undeniable.
And global demand for clean energy mining makes them an exciting investment.
We’ll update this page in a few weeks when they announce new partnerships and acquisitions. We wanted to get this out ahead of the news as we believe the stock is going to respond positively.
Your friend in trades,
Before The Bulls
Forward Looking Statement
This report is strictly for information purposes only and is neither soliciting you to buy or sell securities. TruTap is not a registered investment advisor nor a broker-dealer. Any information, opinions or analysis contained herein are based on sources seen as trustworthy. There is no explicit or implicit representation as to the accuracy or complete nature of its contents. The present opinions herein reflect our current estimation and are subject to change. TruTap accepts zero liability for losses arising from investor’s use of this material. TruTap has been compensated $25k for coverage of (NASDAQ:MKTY) by MTI this year. TruTap currently holds zero shares of this stock. TruTap or its affiliates may buy shares in the open market at any time without notice. The article contains forward-looking statements, as per the Private Securities Litigation Reform Act(PSLRA), including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words “may”, “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” “project,” along with similar wording are to communicate forward-looking statements. Such forward-looking data involves important risks and uncertainties that may influence results. Readers are advised to read and carefully consider any risk indicated and explained in the profiled company’s SEC and/or other government filings. Investing in microcap securities is speculative and carries a high degree of risk. Never invest in stocks discussed on this site unless you can afford to lose your entire investment.