09. November 2021 | 13:54 CET
Bitcoin Group, Desert Gold Ventures, MicroStrategy - The way is clear
Bitcoin has once again broken through the USD 66,000 mark. Only a few points are left to climb to a new all-time high. The number two cryptocurrency, Etherum, has already made this jump. In addition to speculation, rising inflation is cited as the reason for the renewed rise. Bitcoin has a limited supply with a fixed cap of 21 million units and is referred to as the "digital gold". In contrast, the precious yellow metal is still in the correction phase, with good chances of a long-term comeback.
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ISIN: BITCOIN GROUP SE O.N. | DE000A1TNV91 , DESERT GOLD VENTURES | CA25039N4084 , MICROSTRATEG.A NEW DL-001 | US5949724083
"[...] Both the geology and the infrastructure around the project make for a very attractive cost structure. We expect to be able to produce at 50% of the current gold price. [...]" Bill Guy, Chairman, Theta Gold Mines Limited
MicroStrategy - Largest bitcoin profiteer in the world
Opinions are divided about investment in digital currencies. For some, it is an investment without intrinsic value and therefore definitely not suitable as an alternative to other forms of investment as a store of value. At the same time, crypto disciples see it as the means of payment of the future. There is no question at the moment that cyber currencies, specifically bitcoin, have enormous momentum. Technically, a new all-time high of around USD 80,000 initially is not a utopia before the end of this year.
Those who do not want to invest directly in the currencies, but in shares with a real existing company behind them, should look at the shares of the global software manufacturer MicroStrategy. The US Company offers solutions for business intelligence, report generators and online analytical processing. However, another fact also provides for enormous fantasy. As of the end of September, MicroStrategy has around 114,000 Bitcoin in its corporate portfolio, the equivalent of USD 7.52 billion, based on a unit price of USD 66,000. The market capitalization currently stands at USD 8.26 billion. If bitcoin continues to rise, the shareholder will virtually get the operating business in addition.
CEO Michael Saylor is an absolute Bitcoin advocate on the bridge of command. For the future, he has already announced that he wants to increase the cryptocurrency further.
Desert Gold Ventures - Further milestones
Opinions are also divided on gold at the moment. Especially the fact that the precious metal, which historically has always been considered a protection against currency devaluation, is currently still in correction mode. Although the general conditions with rising inflation rates and low-interest rates are excellent, some investors are prevented from investing. In the long term, when the central banks have to prove that the price increases are not only temporary but permanent, gold should return to bull market mode. One should now position anticyclically in promising producers and exploration companies.
The Company has recently provided enough reason to buy Desert Gold shares. With the SMSZ project, the Canadians own a 440 sq km land package in the high-grade Senegal-Mali Shear zone of the same name. With B2 Gold, Barrick Gold and Allied Gold, the crème de la crème is drilling for precious metals in the immediate vicinity.
With the acquisition of the 30.6 sq km Kolomba concession, which is associated with SMSZ, the zone could be expanded. The CEO of Desert Gold, Jared Scharf, speaks of a perfect deal for further strategy. With the strategic location of the Kolomba concession and the quality of the exploration targets within its boundaries, Kolomba will play an essential part in the 2022 drill program. In addition to the purchase of the concession, historical drilling data was also provided. The area associated with SMSZ was last worked about 18 years ago at a gold price of about USD 360 per ounce. Approximately half a million ounces are estimated to still be in the ground.
In addition, results from the outstanding 123 drill holes that are part of this year's drill program were announced. The drilling includes discoveries at the Kamana and Sorokoto North and South subdivisions and extensions of known zones at the Gourbassi East Zone, Gourbassi NE and Gourbassi SE targets. Highlights include gold discoveries at Kamana to the north of SMSZ of 1.80 g/t gold over 17m and 2.23 g/t gold over 9m. Here, company leader Scharf highlighted the exceptional exploration potential of the SMSZ project. The drilling successes and the acquisition have crystallized the obvious targets for the next year. Accordingly, 2022 is likely to focus on prioritized targets that have the size and scalability of a potentially large deposit. With a market capitalization of around EUR 17 million, Desert Gold is suitable as a portfolio addition.
Bitcoin Group - Undervalued player
A promising candidate for rising prices with Bitcoin continuing to boom is the Bitcoin Group share. Compared to its American peer group, the investment company, focusing on innovative business concepts and technologies from cryptocurrencies and blockchain technology, is still lagging from the euphoria. Potential is still clearly available at a price of EUR 52.90.
The analysts at GBC AG also see this and rate the share a "buy" with a price target of EUR 120.00 in their initial research study. Above all, the experts highlighted the pleasing development of the highly profitable Bitcoin.de trading platform. In addition, the Company held crypto stocks of around EUR 235.00 million as of the end of October. From this, the two analysts Matthias Greiffenberger and Felix Haugg, conclude: "With a market capitalization of EUR 250.00 million and an enterprise value of EUR 49.80 million (market capitalization less crypto & cash holdings), we currently see the Company as strongly undervalued."
Cryptocurrencies continue to run upwards. While Etherum has already climbed to a new all-time high, Bitcoin is on the verge. Benefiting from the momentum will be stocks that hold the digital currency in their portfolios. MicroStrategy and Bitcoin Group are well-positioned in this regard. Also well positioned is Desert Gold, which should benefit from the next gold run.