Whoever thinks cryptocurrencies are boring definitely doesn’t know how much influence they can exert on the valuation of a business model for a traditional company.
Call it hype, or call it a strategic investment. Still, a technology company in Thailand has revalued nearly 7000% in one year after announcing a shift to a more cryptocurrency mining-focused business model.
To Infinity and Beyond
Jasmine Technology Solution, a telecommunications-focused company, founded in the 1990s, announced in July of this year that it would target the cryptocurrency mining business soon.
And whoever thinks that the overreactions to the announcements were just a crypto thing definitely hasn’t seen the company’s stock charts. Thanks to this turnaround, Jasmine Technology Solution’s stock price skyrocketed, surpassing a 6700% year-to-date growth. All thanks to the magic of Bitcoin.
Jasmine Technology Solution started the year with a stable price of $2 per share. As of today, each share is trading on the order of $132.5, having reached an ATH of $150 on December 15.
Since then, the price has gone sideways, fluctuating between $236 and $138 per share.
And if such a bullish performance sounds unbelievable, you might want to hold on to your chair when you read that as of today, the company has generated as much as 8BTC from its mining operation – and no, that’s not a typo.
The Bitcoin Effect
Jasmine Technology Solution’s expectations are high. Its website claims that the company intends to build the largest Bitcoin mining farm in Thailand, with expectations of running the most prominent cryptocurrency mining operation in Southeast Asia before the next Bitcoin halving in 2024.
These goals are far more pretentious than the 8 bitcoin they have mined so far, and even one of the company’s chairmen, Soraj Asavaprapha, said in an interview shared by Bloomberg, that the response from investors was surprising;
“The strong response from investors has exceeded our expectations. There’s bullish optimism toward our new direction even though this is just the beginning.”
This is not the only company pivoting to cryptocurrencies. The most prominent example in the crypto ecosystem is MicroStrategy, a cloud software company that gained strong public exposure – and sky-high appreciation – following the aggressive Bitcoin purchase strategy driven by CEO Michael Saylor.
On the other side of the coin, companies like HTC and Kodak experimented with launching devices targeting the crypto ecosystem to renew their brand without obtaining very encouraging results. A new corporation dipping its toes inside the DeFi rabbit hole is RadioShack.
And finally, there are companies like tea and lemonade producer Long Island Ice Tea Corp. that suddenly changed its name to Long Blockchain Corp. getting its shares to take off only to crash and end up in a series of lawsuits.
The future of Jasmine Technology Solution is not yet written, and there is an infinite number of possibilities —whether good or bad— for the company.