Integrated Ventures’ Recent Deal With PetaWatt is
Gamechanger:
Cheap Energy + 6,000 BTC Making Mining Profitable
Again
May 9, 2019 -- InvestorsHub NewsWire
-- Integrated Ventures, Inc (OTCQB:
INTV), currently trading at lower levels of its 52-week price
range, is a pure play on bitcoin mining, but market forces have
pushed it to evolve and adapt to extreme bear market conditions in
the price of Bitcoin. Bitcoin mining is literally becoming a story
of the survival of the fittest. The biggest variable in a mining
operation boils down to the cost of the mining rigs and the cost of
electricity. The players that can adapt and survive in the coming
boom and bust cycles are the best of breed companies. INTV fits the
mold because not only does it mine but its involved in other
activities that generate cash flow. These activities include;
hosting, co-location, mining pools and mining equipment
sales.
The most important variable cost in
mining is the cost of power and INTV has come up with brilliant
strategy to secure its place as a mining powerhouse with signing of
a multi year hosting and marketing agreement with PetaWatt, LLC,
located in upstate NY. By gaining access to the lowest price for
power (under $.05/kwh), the company have procured a solution to
become the lowest cost cryptocurrency player in the Northeast and
possibly the nation. Most bitcoin miners are paying anywhere
between $.06-12 kw/h. The PetaWatt's capacity of 120 MW has the
capacity to power up to 100,000 mining rigs. It rivals the prices
paid by miners, located in Wenatchee with very cheap hydroelectric
power. In the volatile space of cryptocurrency, INTV came up with
the most grounded and cost-effective model in the sector, which
again not only allows them to survive a unpredictable crypto market
but to deliver much higher profit margins relative to the market
fluctuations. That upward shift is potentially happening as we
speak.
Crypto Winter Signs of
Thawing
Nigel Green, the CEO of UK-based
DeVere Group discussed the state of
the crytptocurrency market
and declared that the recent upward
break in bitcoin confirms the markets have found a long term bottom
and that the “Cypto Winter” is finally over.
Cryptocurency
traders are
buzzing about Bitcoin and pointing to the historical RSI and how
that is signaling an imminent bull run. These are just some
empirical examples that the overall bearish mood in
cryptocurrencies is starting to change and turn bullish. On
December 15, 2018 the CoinMarketCap was $101 billion off from its
January 7, 2018 high of $813 billion. More recently the market
capitalization has been moving over $180 billion which is
essentially an 80% bounced off the lows in the past 4 months.
It’s great to look at these technicals, but the essence of
the story always traces back to the fundamentals. The hash rate and
difficulty level are designed to throttle the bitcoin rewards was
going up at an unsustainable pace last year and peaked in October
2018. It was taking an incredible amount of computing power
to mine a bitcoin for very little reward. Eventually miners turned
off these machines and the difficulty level and hash rate dropped
for the first time in a very long time. Too many mining rigs
entered the market at once and that led to the correction.
Now difficulty levels and hash rates have bottoms and bitcoin
is starting its new ascent. Overall, Bitcoin
mining in 2018 hasn’t been as profitable as in 2017 despite an
increase in overall revenue. With the network hashrate continuing
to increase astronomically, miners now pay higher electricity
tariffs severely affecting their bottom-lines.
Will BTC $6000 Bring on the
BULL MARKET for Crypto?
There is tremendous upside if
bitcoin can get traction. Right now, $BTC is sitting around
$5100-5300 holding its nearly $1000 rise since April 1, 2019.
Bitcoin’s ability to maintain this trading level will bring
confidence to crypto traders, especially the ones that went into
retirement after a rough 2018.
Yes, BTC was nearly $20k in its
prime, where hindsight is 20/20 by saying it moved up too fast, too
quickly. Even though bitcoin struggled throughout the year,
declining from the $9000 range to the $6000 range, the biggest
dagger for both crypto traders and miners came late in 2018. On
November 13, 2018, BTC was $6282 and sunk an additional 50% over
the next month where it hit a bottom of $3194 on December 15,
2018.
At these dismal trading levels, the
cost of mining was too much and almost every bitcoin miner had to
flick the power switch leaving their power hungry hightech rigs to
collect dust. With BTC recovering to $5000+, miners are near a
breakeven point again, while those, like INTV that can control
their energy costs are profitable again.
We’d like to think $6000 is the next
benchmark that will kick start the BTC bull market. We think the
sideline money is increasingly gaining confidence in the crypto
market again. The strong CBD, cannabis market has unfortunately
become oversaturated and most seasoned investors welcome a sector
to become hot again--thus the crypto market. If we can see $6000,
don’t be surprised to see traders of old jumping on the bandwagon
again, inflating stocks and coins to new 52 weeks highs as the
money shifts from sectors like cannabis back into
crypto.
How long will the bull-rush last is
the question, but we do know that investors are ready to pounce on
the opportunity when it arises, which many are betting will be
sooner than later.
5 Ways INTV Can Survive the
BITCOIN Bear Market
-
Securing Competitive Electricity
Rates. By partnering with PetaWatt,
Integrated Ventures will have access to reliable power source and
low pricing structure.
-
Generating Cash Flow via Hosting,
Mining & Revenue Share Services. Integrated Ventures intends to
generate significant revenue through hosting and revenue share
services.
-
Locking-In Record Low Hosting
Rates on Long-Term Contracts. Integrated Ventures’ access to low
cost power will allow the company to offer the most competitive
hosting rates in the industry, spiking demand for long-term
contracts.
-
Implementing “Plug-and-Play”
Container Solutions.
Integrated Ventures will offer access to mobile mining containers
for ASIC and GPU miners, creating a “WeWork” -style mining option
for those seeking hosting space. Initially, this modular structure
will be used in-house to control ramp-up and ramp-down as coin
prices fluctuate.
-
Purchasing Discounted Mining Rigs
from Secondary Markets. Integrated Ventures will keep costs
low by purchasing equipment on the secondary market, a strategy
that was not possible when the market was in its infancy.
Long Term Power
Contracts
Without a long-term supply of cheap
power, a miner cannot sustain operations through the lean times.
Luckily for INTV, with newly signed agreement, power expense
will represent approximately 40% of the overall mining cost while
those at .09 KWh its nearly 95% of their cost. For those miners
with rates at .10+ they cannot continue to mine even at the current
rates of over $5000. This again is where INTV has such a huge
advantage while they can gain 225% vs power, someone at .095 is
breaking even, thus in a bear market where bitcoin is $3-$4000,
INTV can still mine for profitability while others have to stop
mining to avoid losses.
For INTV this is a blank slate for
them to build the ideal mining operation. No existing miner
is better positioned than INTV. Low power costs allow them to lock
in long term hosting contracts creating that all important stream
of revenues.
Public
Company
|
Ticker
|
Capacity
|
O/S
|
Rig
Capacity
|
Price
|
Market
Cap
|
Revenue est
|
Integrated Ventures
|
INTV
|
80
MW
|
20.5
mil
|
52,000
|
$.08
|
$1.64
mil
|
$400,000
|
HIVE
Blockchain
|
HVBTF
|
44.2
MW
|
314
mil
|
10,000
|
$.56
|
$175.8
mil
|
$33.3
mil
|
Riot
Blockchain
|
RIOT
|
12
MW
|
13.4
mil
|
7,800
|
$5.30
|
$71.0
mil
|
$7.7
mil
|
MGT
Capital
|
MGTI
|
10
MW
|
195.8
mil
|
6,500
|
$.082
|
$16.0
mil
|
$2.02
mil
|
Marathon Patent Grp
|
MARA
|
2.0
MW
|
6.4
mil
|
1,300
|
$3.15
|
$20.16
mil
|
$1,562,373
|
The
Competition
For Integrated Ventures, many of
little mining companies have shut down or adapted to the bear
market by shifting company focus into a different sector such as
gaming or cannabis. For the big boys that weathered the storm as
INTV did, when looking at the grid above, we find just how much
potential Integrated Ventures has versus its
peers.
Its Megawatt capacity sticks out
like a sore thumb, as HVBTF (Hive Blockchain) worth in excess of
$175m has just a little over half of INTV’s power potential and 19%
of their current rig capacity, yet Integrated Ventures is only
1/100th the valuation of HIVE.
If you continue to compare and
contrast INTV’s potential to the other competitors, one can see,
that if crypto gets hot again, not only are they undervalued
amongst their peers in this sector, in conjunction with the biggest
upside potential, is a recipe for success investors may want to
jump on.
Investment
Summary
The recent market pressure is
related to the conversion of 128k convertible note and stock sales
by investors, related to two M&A transactions, that occurred in
summer of 2018. The stock is extremely oversold and represents
minimal risk at these levels. Management clearly has a unique
vision, a wealth of experience, and is executing their business
plan. INTV is poised to expand operations at the perfect time in
the business cycle using the ideal bitcoin mining model of
purchasing discounted mining rigs, hosting, and locking in long
term collocation contracts as the price rises. INTV is
morphing into the lowest cost producer of cryptocurrency with the
greatest capacity. They are poised to become the market leader by
the end of this year if they simply operate a just one fifth of
their capacity. Their business model is designed to survive a
bitcoin meltdown yet profit handsomely if it rises. Relative to
their peers their market cap is extremely undervalued, and
investors are simply not pricing in what the new low cost power
structure will look like with newly signed deal. Investors
considering an investment into INTV need to really consider just
one thing.
Integrated Ventures (QB) (USOTC:INTV)
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