Shares of Thai Jasmine Technology Solutions have more than tripled in value since the company announced its plan to expand into the bitcoin mining business in late July – even though its crypto project has yet to generate sufficient revenue for the company. So far this year, the company’s share has risen close to 7,000% – the highest rate among shares of international tech companies, giving the company a value of two billion dollars, according to information collected by Bloomberg.
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“The strong reaction from investors has exceeded all expectations,” said company chairman Suraj Aswarffa. “There is optimism about our new direction, even though it’s just the beginning.” Jasmine Technology is just one of many Thai companies entering the field. Digital assets The appliance maker AJ Advance Technology also announced this month its first investment in bitcoin mining, and Siam Commercial Bank and Kasikornbank also invested for the first time in crypto startups.
Enthusiasm for crypto products, especially among young investors, has increased the volume of trading on local conversion sites, leading to a series of new highs – prompting a Thai regulator to tighten regulations. Jasmine has only produced eight Bitcoin using its 325 mining machines since Question started operating several months ago. Suraj expects next year to be much more active, thanks in part to the plan to invest 3.3 billion baht ($ 98 million) for 7,000 mining appliances.
“Revenue from the mining business will account for 80% of the company’s total turnover by the end of 2022,” he says. “We still do not have much information about the company’s foundations, valuations and income prospectuses, as the bitcoin mining field is very new in Thailand,” adds Wilsina Bonamsongsong, an analyst at Globex Securities in Bangkok. “It has been well received by investors as it is a pioneer in the field in Thailand, but there is also a regulatory risk.”
The Bank of Thailand said last month that the regulator plans to issue more detailed regulations regarding digital assets to protect the financial system and investors. The turnover of seven local crypto conversion sites reached $ 6.58 million in total in November, compared to a fraction of that amount in 2020.
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