In a notable start to 2024, the digital asset landscape witnessed a significant boost in investor confidence and market participation. Fineqia International Inc. (CSE: FNQ), a frontrunner in the digital asset and fintech investment sphere, has shed light on this positive trend through its meticulous analysis of global Exchange-Traded Products (ETPs) that incorporate digital assets as their underlying collateral. According to Fineqia’s research, January saw a 5% increase in total crypto Assets Under Management (AUM), climbing to $52.0 billion from the previous $49.5 billion.

This uptick in AUM is particularly striking given the backdrop of a 2.7% dip in the overall market value of crypto assets, which settled around $1.73 trillion from $1.77 trillion. The divergence between the AUM growth of crypto ETPs and the broader crypto market valuation can be largely attributed to the approval and commencement of trading of BTC Spot ETFs in the United States from January 11 onwards. These approvals have sparked a significant capital inflow into crypto ETPs, marking a pivotal moment for the industry.

The introduction of 10 BTC Spot ETFs by prominent issuers such as Blackrock, 21Shares, Grayscale, and more has been a catalyst for this growth. Notably, this includes nine new issuances and the transformation of the Grayscale Bitcoin Trust (GBTC) into an ETF. These newly issued products alone have attracted approximately $6.9 billion in inflows in January, despite a net outflow from the Grayscale ETF, resulting in a net inflow exceeding $1 billion for the month.

Among these, BlackRock’s iShares Bitcoin Trust (IBIT) stands out, securing its position as one of the top five ETFs of 2024 based on inflows, with a remarkable $3.2 billion amassed in just the first 17 days since its launch. The BTC ETFs have also been buoyed by Google’s updated marketing policies, allowing for increased visibility through ads for “cryptocurrency coin trusts” in search results.

Fineqia CEO Bundeep Singh Rangar likened the approval of BTC Spot ETFs in the U.S. to a green light that has set the investor traffic in motion, with more participants gaining confidence in digital assets. The positive sentiment is reflected in the performance of Bitcoin (BTC) itself, which saw a price increase of 2.5% to $43,300 in January. Similarly, Ethereum (ETH) witnessed a 3.9% rise to $2,365, showcasing the growing investor interest in leading cryptocurrencies.

Despite some segments experiencing a dip, such as ETPs representing a diversified basket of cryptocurrencies and those tracking an index of alternative coins, the overall growth narrative remains strong. The AUM of ETPs with BTC as the underlying asset, for instance, rose by 6.8% in January, underscoring the significant net inflow following the BTC Spot ETFs’ approval.

Fineqia’s analysis, drawing on reputable sources like 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., Morningstar, Inc., and TrackInSight SAS, highlights the robustness of the digital asset ETP market. With a portfolio encompassing the forefront of tokenization, blockchain technology, NFTs, AI, and fintech, Fineqia continues to be at the vanguard of supporting the next generation of the internet through its investments and research efforts. As the digital asset market evolves, the role of ETPs and the impact of regulatory approvals like those for BTC Spot ETFs in the U.S. will be crucial in shaping investor participation and confidence. The early indications from January 2024 suggest a promising year ahead for digital assets, as both new and seasoned investors navigate this dynamic and increasingly mainstream investment landscape.

Bitcoin’s price witnesses a remarkable rise of 155% in 2023

Fineqia International Inc. (CSE: FNQ), a prominent player in digital assets and fintech investments, has released a comprehensive analysis of global Exchange Traded Products (ETPs) that are based on digital assets. This report highlights a significant growth in the Assets Under Management (AUM) of these products. In 2023, the AUM for digital asset-based Exchange Traded Funds (ETFs) and Notes (ETNs) surged by 2.5 times, reaching an impressive figure of nearly $50 billion, up from $20 billion.

The company’s analysis revealed that the worldwide crypto ETPs’ AUM grew at a rate of 19% over the value of the underlying digital assets, which increased by 123%. This disparity in growth rates is mainly attributed to Bitcoin’s dominance in the ETP AUM, holding a 72% share, which is significantly larger than its 53% share in the overall digital asset market. Bitcoin’s price witnessed a remarkable rise of 155% this year, which fueled investor interest in Bitcoin-denominated ETFs and ETNs.

Bundeep Singh Rangar, CEO of Fineqia, commented on this trend stating, “BTC was the sled dog pulling the (digital asset) ETF sleigh this season.” He further added: “Investors believe they might even have sighted a Santa at the SEC.”

In the fourth quarter of 2023 alone, the AUM of ETPs with Bitcoin as the underlying asset experienced a substantial growth of 64%, rising to $35.6 billion from $21.7 billion. This growth was supported by Bitcoin’s price increase of 57% to $42,300. Throughout the year, the AUM of ETPs holding Bitcoin escalated by 162%, outpacing the 155% rise in Bitcoin’s price.

The report also discusses the anticipation surrounding the SEC’s potential approval of spot Bitcoin ETFs by major issuers like Blackrock, Fidelity, Grayscale, and VanEck. The total AUM of ETPs holding digital assets grew by 62% in the fourth quarter to $49.5 billion, surpassing the 53.8% rise in the market cap of all digital assets, which reached $1.77 trillion. This indicates significant net inflows of investment capital, especially during the last quarter of 2023.

In December, the total crypto AUM increased by 14%, and the market value of crypto assets rose by 19%. Bitcoin’s price itself increased by 12.4%, while the AUMs rose by 11.8%.

The report also sheds light on Ethereum (ETH) and other cryptocurrencies. Ethereum’s value increased by 11.5% in December, and the AUM of ETH-denominated ETPs rose by 14.2%. Throughout 2023, the price of Ethereum rose by 90%, with a near equivalent increase in the AUM of ETH ETPs, suggesting neutral capital flows for these products.

ETPs representing a diversified basket of cryptocurrencies also showed significant growth, with a 23.9% increase in AUM during December and a 138% rise over 2023. The AUM for ETPs holding individual altcoins saw a 165% increase in 2023, indicating robust growth in this sector.

According to the news release issued earlier today, Fineqia’s analysis includes data compiled from reputable sources such as 21Shares AG, Grayscale Investment LLC, VanEck Associates Corp., Morningstar, Inc., and TrackInSight SAS. The company, listed in Canada with offices in Vancouver and London, focuses on investments in early and growth stage technology companies, particularly those involved in tokenization, blockchain technology, NFTs, AI, and fintech. Fineqia is in the process of forming a VC fund, Glass Ventures, to back pioneering Web 4.0 companies.

In a recent interview with Tracy Weslosky from InvestorNews, Bundeep Singh Rangar, CEO and Director of Fineqia International Inc. (CSE: FNQ), provided insights into the company’s investment in Criptonite, a Swiss digital asset management firm, and discussed the current state of the digital asset market. Concurrently, Fineqia released a news report highlighting significant growth in the digital asset sector.

Rangar emphasized Fineqia’s strategic investment in Criptonite to expand its business proposition and European presence. Criptonite specializes in developing institutional-grade products for digital asset investment, aligning with Fineqia’s objectives and long-standing relationship with the firm’s founder. This investment is part of Fineqia’s broader strategy to increase its footprint in the digital asset market, particularly in Europe.

The interview also revealed Fineqia’s analysis of the digital asset market, particularly in Exchange-Traded Products (ETPs) which include Exchange-Traded Funds (ETFs) and Exchange-Traded Notes (ETNs). According to their findings, ETPs with digital assets as underlying collateral experienced a notable 91% growth in Assets Under Management (AUM) year-to-date, surpassing the growth of the underlying digital assets themselves by 30%. This growth was primarily driven by Bitcoin (BTC), which comprises a significant portion of the ETPs’ AUM, despite having a smaller share in the overall digital asset market. The growth in Bitcoin’s value, which more than doubled this year, significantly impacted the ETPs’ AUM.

In October, the AUM for digital asset-based ETPs peaked at $38 billion, the highest since May 2022, representing a 25% increase from the previous month. This surge coincided with a general increase in the market value of cryptocurrencies, which saw a 17% rise, reaching about $1.35 trillion, the highest since June 2022.

Rangar also discussed the regulatory landscape, noting a growing regulatory clarity in regions like Europe, UAE, Hong Kong, and Japan. In contrast, the United States has seen a more enforcement-driven approach by the SEC, which is evolving towards a greater certainty. This shift is exemplified by the anticipation of the approval of Bitcoin Spot ETFs in the U.S., evidenced by several pending applications and BlackRock’s plans for an Ethereum Spot ETF. The market is responding positively to these developments, with expectations of SEC approvals driving investor interest and allocation decisions.

Rangar’s commentary on regulatory developments, combined with Fineqia’s analysis, indicates a maturing digital asset market with increasing institutional interest and regulatory clarity. This scenario presents opportunities for growth and innovation in digital asset investment products, a domain where Fineqia is actively positioning itself.

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About Fineqia International Inc.

Fineqia is a digital asset business that builds and targets investments in early and growth stage technology companies that will be part of the next generation of the Internet. It also provides a platform to support and manage the issuance of debt securities in the UK. Publicly listed in Canada (CSE: FNQ) with offices in Vancouver and London, Fineqia’s portfolio of investments includes businesses at the forefront of tokenization, blockchain technology, NFTs, AI, and fintech.

To learn more about Fineqia International Inc., click here

Disclaimer: Fineqia International Inc. is an advertorial member of InvestorNews Inc.

This interview, which was produced by InvestorNews Inc. (“InvestorNews”), does not contain, nor does it purport to contain, a summary of all material information concerning the Company, including important disclosure and risk factors associated with the Company, its business and an investment in its securities. InvestorNews offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This interview and any transcriptions or reproductions thereof (collectively, this “presentation”) does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company. The information in this presentation is provided for informational purposes only and may be subject to updating, completion or revision, and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any information herein. This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. This presentation should not be considered as the giving of investment advice by the Company or any of its directors, officers, agents, employees or advisors. Each person to whom this presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. Prospective investors are urged to review the Company’s profile on SedarPlus.ca and to carry out independent investigations in order to determine their interest in investing in the Company.

In a recent analysis by Fineqia International Inc. (CSE: FNQ), a prominent digital asset and fintech investment firm, there has been a notable surge in the global market of Exchange Traded Products (ETPs) that are based on digital assets. The year-to-date (YTD) data reveals an impressive 91% increase in the total Assets Under Management (AUM) of these products. This growth rate is particularly significant as it surpasses the expansion rate of the underlying digital assets by 30%.

The report highlights that the assets underlying these ETPs, including Bitcoin (BTC) and other cryptocurrencies, experienced a slower growth rate of 70% from January 1 to October 31. This discrepancy is largely attributed to Bitcoin’s dominant role in the ETPs, where it comprises about three-quarters of the AUM, despite representing only half of the digital asset market. The substantial appreciation in Bitcoin’s value this year has therefore had a pronounced impact on the AUM of ETPs, which include both Exchange-Traded Funds (ETFs) and Exchange-Traded Notes (ETNs).

October 2023 marked a significant milestone, with the AUM of digital asset-based ETPs reaching a peak of $38 billion, the highest value recorded since May 2022. This peak was a 25% increase from the previous month’s $30.5 billion. Concurrently, the market value of crypto assets experienced a 17% rise, reaching approximately $1.35 trillion, the highest since June 2022.

Bundeep Singh Rangar, CEO of Fineqia, commented on the growing anticipation for the approval of Bitcoin Spot ETFs in the U.S., which is seen as a key factor driving the market’s positive momentum. This anticipation is also evident in the 12 pending BTC spot ETF applications with the U.S. Securities and Exchange Commission (SEC) and BlackRock’s recent move to file for a spot ETH ETF.

The report further details the performance of Bitcoin and Ethereum (ETH) in October. Bitcoin’s price saw a 28% increase, reaching $34,600, and the AUM of Bitcoin-holding ETPs mirrored this growth. Ethereum experienced an 8.2% rise in value, and ETPs holding ETH also saw a similar increase in their AUM.

Additionally, ETPs representing a diverse range of cryptocurrencies and an index of alternative coins, like Solana (SOL), showed significant growth in AUM, with SOL-based ETPs experiencing a notable 172% increase in October.

Fineqia’s research methodology takes into account various factors, including the launch or closure of ETPs, and tracks a total of 168 ETPs as of the end of October. The company, listed in Canada and with offices in Vancouver and London, focuses on investments in early and growth stage technology companies, particularly in areas like tokenization, blockchain technology, NFTs, AI, and fintech.

Fineqia International Inc. (CSE: FNQ) (“Fineqia”), a prominent fintech and digital asset investment company, has recently highlighted a remarkable 51% growth in Assets Under Management (AUM) for global Exchange Traded Products (ETPs) backed by digital assets year-to-date (YTD). This surge saw crypto AUM rise by an impressive 63.5%, a rate that exceeded the growth of the underlying digital assets themselves, which saw an increase of 31.5%.

However, August presented a downtrend as total crypto AUM plummeted by 11%, moving from $34 billion to $30.2 billion. Parallel to this decrease, the market value of digital assets dipped to about $1.05 trillion from an earlier $1.17 trillion. Fineqia’s CEO, Bundeep Singh Rangar, commented on this slump, pointing out the historical weakness observed in digital assets for August, and paralleled it with the S&P 500’s 1.4% drop.

Major cryptocurrencies, namely Bitcoin (BTC) and Ethereum (ETH), were not spared from this decline. Bitcoin’s price saw a reduction of 11%, settling at $26,000 from an earlier value of $29,200. Similarly, Ethereum’s value decreased by 11.2%. This affected the AUM of ETPs holding these assets, with BTC and ETH witnessing a drop of 10.7% and 10.9% respectively.

An important development in the digital asset domain was Grayscale’s lawsuit victory against the SEC. The US-based digital asset management company was previously denied its Bitcoin Spot ETF filing by the SEC. Following the lawsuit, the court has called for a review of this rejection. Yet, even with this legal triumph, Grayscale’s cumulative AUM in August fell by 10.7%. Interestingly, the Grayscale Bitcoin Trust’s discount tightened to 20%, its lowest since 2022.

Performance metrics of other ETPs showed that those representing various cryptocurrencies observed a 13.1% decline in their AUM. Additionally, ETPs focused on alternative coins faced a drop of 16.2%. As of August’s end, the total number of ETPs being tracked was 163, accounting for any launches or closures during the period.

Lastly, to provide context, Fineqia is a pioneering digital asset firm, investing in the vanguard tech companies shaping the future of the internet. They have a keen interest in companies working on tokenization, blockchain, AI, NFTs, and fintech. With its public listing in Canada, Fineqia maintains a significant presence in both Vancouver and London. The above summary was prepared from a news release issued by Fineqia today, titled Worldwide Digital Asset-Based Exchange Traded Products AUM Surges 51% Year-to-Date.

In this InvestorIntel interview, Chris Thompson talks with Fineqia International Inc.’s (CSE: FNQ) CEO, and Director Bundeep Singh Rangar about receiving approval for its base prospectus in the European Economic Area to offer Exchange Traded Notes (ETNs) collateralized by digital assets. In addition to tracking price movements of its underlying digital assets, Bundeep discusses how its ETNs will also generate yield for investors.

Bundeep provides an update on their recently announced partnership with FTSE Russell, a leading global index pricing provider. In addition to enhancing the transparency and liquidity of Fineqia’s digital asset investment products, Bundeep explains how the partnership with FTSE Russell lends credibility to Fineqia’s integrity and helps them target institutional investors.

Sharing his confidence in the long-term adoption and growth of digital and alternative assets, Bundeep provides an update on Fineqia’s new venture capital fund, called Fineqia Glass Slipper Ventures (FGSV), which will invest in innovative companies in the digital asset industry.

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About Fineqia International Inc.

Fineqia (www.fineqia.com) is a digital asset business that builds and targets investments in early and growth-stage technology companies that will be part of the next generation of the Internet. It also provides a platform to support and manage the issuance of debt securities in the UK. Publicly listed in Canada (CSE: FNQ) with offices in Vancouver and London, Fineqia’s portfolio of investments includes businesses at the forefront of tokenization, blockchain technology, NFTs, and fintech.

To learn more about Fineqia International Inc., click here

Disclaimer: Fineqia International Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

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In this InvestorIntel interview, Tracy Weslosky talks to Fineqia International Inc. (CSE: FNQ) CEO and Director Bundeep Singh Rangar about their recent analysis of Exchange Traded Products (ETPs) worldwide. As an asset class with cryptocurrencies as underlying assets, Bundeep discusses how ETPs continues to attract investors’ interest.

As the number of ETPs increased by 50% in 2022, Bundeep explains how digital assets such as Bitcoin have gained confidence for “being a longer term asset class.” Bundeep goes on discuss publicly listed and regulated companies that give exposure to the emerging digital asset economy.

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About Fineqia International Inc.

Fineqia (www.fineqia.com) is a listed entity in Canada (CSE: FNQ), US (OTC: FNQQF) and Europe (Frankfurt: FNQA). Fineqia’s strategic focus has been to provide a platform and associated services to support securities issuances and manage the administration of debt securities. Fineqia is building out its alternative finance business and holds a growing portfolio of blockchain, fintech and cryptocurrency technology companies worldwide.

To learn more about Fineqia International Inc., click here

Disclaimer: Fineqia International Inc. is an advertorial member of InvestorIntel Corp.

This interview, which was produced by InvestorIntel Corp., (IIC), does not contain, nor does it purport to contain, a summary of all the material information concerning the “Company” being interviewed. IIC offers no representations or warranties that any of the information contained in this interview is accurate or complete.

This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

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Everyone has heard of cryptocurrency mining and data centers by now; but have you heard of a company that specializes in providing low cost infrastructure (power and water) and hosting services for these sectors. Specialized crypto mining and data centers use huge amounts of electricity so sourcing cheap, reliable, and ideally green electricity is paramount. Today’s company does just that.

Energy costs are a key factor for data centers and crypto mining operations due to the large amounts of electricity needed

Source: Link Global Technologies website

Link Global Technologies Inc. (CSE: LNK) (“LINK”) operates as a Bitcoin mining business as well as providing hosting and power purchase contracts to clients. LINK provides the infrastructure and operating expertise for digital mining and data hosting operations. The Company had its origins in crypto mining using low cost electricity so it has hands on experience.

LINK’s main businesses involve:

• LINK’s original Crypto mining business (1,400 Bitcoin mining machines).
• Securing power purchase agreements (PPAs) for customers in data centers or crypto mining. LINK arranges scalable, cost-effective access to clean energy. LINK provides power to over 5,000 mining machines within existing operational capacity.
• Supplying energy efficient containerized data centers.

LINK’s point of difference is energy efficiency. LINK is able to save data center or crypto mining clients money on their infrastructure costs (notably electricity and/or water bills) by providing expertise and personalized solutions for each client’s needs. LINK is able to tap into green energy sources as well as energy storage solutions.

LINK state: “Link’s staff has a combined 25 years of alternative and islanded power experience. We lead in the capture of unused energy and waste heat to generate power for the Blockchain……Link designs state of the art mobile facilities for environments spanning the globe. We have standalone solutions for every climate from the cold of Canada to the heat of Africa.”

About Link Global Technologies business and how they make revenue

Source: Link Global Technologies website

Revenue generation

LINK achieves its revenue primarily from its Bitcoin mining business and also from providing hosting (can be the complete infrastructure package) and power purchase contracts to clients.

One example of how LINK’s business model works is seen in the recently announced agreement to begin building the initial 10MW site with Mission World Group. LINK states: “Link will design, build and operate the infrastructure for the operation of the Miners and will also provide management services necessary to maintain 98% uptime on the Miners. In consideration of these services, Link will work with GSV to achieve competitive rates for power and receive a profit share of mined coins.”

LINK is able to fund such operations from capital such as the announced August 2021 deal to raise $18 million via an equity facility with Alumina Partners, LLC.

LINK acquires Clean Carbon Equity (“CCE”)

As announced on November 2, 2021, LINK completed the acquisition of Clean Carbon Equity (“CCE”). The acquisition allows LINK to take steps towards providing carbon offsets in the digital economy sector, immediately acquiring cash flow and creating new long-term revenue opportunities for the Company.

LINK CEO, Stephen Jenkins, commented: “This business model creates another revenue source apart from the digital currency mining by creating verifiable offsets that we can market and monetize.”

Closing remarks

Link Global Technologies is an innovative power and infrastructure solutions provider for crypto mining, and data center operations. These operations have huge electricity and water needs, so it makes sense to get the best supply deals. Increasingly this also involves sourcing green energy and energy storage backup systems, and now carbon credits.

LINK has experience being a Bitcoin miner and has gained the skills and IP to be able to assist others. LINK’s revenues are coming in from their Bitcoin mining business and their electricity supply contracts. Given the demand growth from crypto mining and data centers it stands to reason that LINK will capture an increasing number of these energy/infrastructure supply contracts.

Link Global Technologies trades on a market cap of ~C$10 million. One to follow in the exciting space of crypto and data center infrastructure providers. Stay tuned.

It seems like nowadays when we start a conversation about investing in gold one has to also include commentary on Bitcoin. There’s no doubt some investment funds that traditionally found safe haven in gold have drifted over to the much more volatile domain of cryptocurrencies. That’s just part of the evolution of the market and, as an investor, one has to adapt. Nevertheless, I will argue that whatever the reason you have for putting a portion of your portfolio into gold or cryptocurrency, you definitely need to have a strong stomach to manage the day-to-day gyrations in Bitcoin, Ethereum, for example, and the like. Not that gold doesn’t have its moments, like the weekend of August 6^th when it essentially plummeted 7% over the weekend, but that was relatively short lived. Arguably gold has traded in a range from $1,700 to $1,950 for the last year. Bitcoin on the other hand has a one year range of roughly $10,000 to $63,000. I dare say a bit of a difference.

Now before you start complaining and telling me to go get my walker, because I’m a dinosaur and haven’t kept up with the times, I need to point out that this isn’t an article about the merits of gold versus crypto. This is solely an article about exploring the potential of investing in gold currently and that’s it. The commentary on crypto is simply to highlight that gold may not be the “go-to” alternative investment it once was. Perhaps Bitcoin et al are attracting some of the same investment dollars meaning that maybe gold doesn’t have the same upside it could have had in a different time…or maybe it does, we’ll have to wait and see how that plays out.

Another topic I’m not going to delve into is the merits of having gold in your portfolio as a safe haven investment or hedge against inflation or whatever. I’m not a gold bug. I’m just an investor. And as such it’s good to know things like: gold tends to have a negative correlation to the US Dollar; generally speaking, it usually doesn’t go down as much as equities in times of crisis or market meltdown (although that’s debatable in more recent times); and that as a finite resource it cannot be printed like a fiat currency. But ultimately, for something like gold, I’m simply looking at charts and momentum and the like because it’s tough to review the fundamentals of most of the above items that tend to affect the price of gold in order to come up with an investment thesis other than technical analysis. Gold miners on the other hand are a completely different story but we’ll get to that.

At present, I would suggest gold looks OK. Not outstanding, not screaming “buy me”, just OK. If we look at the 1-year chart below we see support levels at $1,770 and $1,675 with upside to potentially test $2,000. Depending on your risk tolerance you could buy it now, put in a stop loss around $1,750ish and have a decent risk-reward trade. On a bullish note, it recently broke above both the 50 day and the 200 day moving average, but is struggling to sustain those thresholds. So I’d give it another day or two to see how that plays out. If the price can rally back above $1,850 for a couple of days I would change my tune and say now we’re talking about something a lot better than just OK. In the meantime, it has piqued my interest as it appears to be a trade with more upside than downside.

Source: StockCharts.com

Having a strategy for the underlying commodity now allows us to look at the miners for additional opportunities. In my opinion, here is where things get interesting. The two charts below show the commodity price (red line) versus the gold miners (blue line) represented by the VanEck GDX ETF and the junior gold miners (green line) represented by the VanEck GDXJ ETF. Albeit, what the GDXJ ETF considers “junior” miners and what I consider junior miners may differ, you’ll still get the point.

The first chart is a one year comparison of the three in terms of relative performance, as in they all start at 0% return on day 1. The second chart shows what has happened since the start of June, when gold tested $1,900 but couldn’t decisively break above. As you can see both the miners and the junior miners have significantly underperformed the underlying price of gold over the last year, primarily in the last 3+ months.

Is this underperformance a result of the miners leading the gold price and should one anticipate gold to drop significantly? Or is it an opportunity to get long the miners right now because they have been unfairly punished relative to the price of gold?

What I do know is that almost all gold producers are making money hand over fist with gold over $1,750. One would think that as balance sheets get cleaned up with all that cash generation, as long as the sector as a whole doesn’t revert back to old habits of overpaying for acquisitions when the coffers are full, we could start to see more share buybacks or dividends or a whole bunch of drilling to expand existing resources or define new ones. All of which should be quite bullish.

Ultimately an investor can play this however they like. I know I’m taking a lot closer look at the junior gold producers right now as I think there could be an opportunity there.

If you’ve been following some of the noteworthy news items in the cryptocurrency space, you’ll be aware that in May of this year, China banned financial institutions and payment companies from providing services related to cryptocurrency transactions, and warned investors against speculative crypto trading. China has banned crypto exchanges and initial coin offerings but has not barred individuals from holding cryptocurrencies…yet, but some suspect that may be on the horizon. June saw the Chinese government further up the pressure with The People’s Bank of China summoning payments firm Alipay and several major lenders to tell them they must not provide cryptocurrency-related services. Then in early July China’s central bank said it had called for the shutdown of a company that “was suspected of providing software services for virtual currency transactions.” These latest actions in China serve as a positive indicator for cryptocurrency mining operations in North America.

However, we are all aware that North America also has its focus on the reduction of its carbon footprint, which hardly seems to fit with power-hungry Bitcoin mining. The solution is a move towards efficient, clean cryptocurrency mining and that is being facilitated by Link Global Technologies Inc. (CSE: LNK). Link generates revenues from building and managing semi-portable, self-contained power solutions (containers) that can be rapidly deployed in virtually any environment; providing cost-effective power and infrastructure solutions to third party digital currency miners. Link is an innovative power and infrastructure solutions provider for Bitcoin mining, and data hosting operations.

The Company’s vision is a fully integrated hybrid of clean energy infrastructure and active support for the digital currency community. They have made two huge steps recently to help differentiate themselves and get on board with the increasing focus on how cryptocurrency is mined. First, in July, Link announced it had signed the Crypto Climate Accord. What does that mean? The Crypto Climate Accord (CCA) is a private sector-led initiative to decarbonize the cryptocurrency and blockchain sector. The CCA brings together organizations that inform, develop, test, and implement new solutions that accelerate cryptocurrency’s transition to renewable energy. As a CCA Signatory, Link has committed to achieve net-zero emissions from the electricity consumption associated with all of its respective crypto-related operations by 2030. Putting their money where their mouth is, two weeks ago the Company announced a letter of intent to acquire Clean Carbon Equity (CCE). This $1.4 million transaction (payable in shares) will provide Link with one of Canada’s leading traders of Verified Emission Reduction Credits in the voluntary carbon offset market. Along with showing Link’s commitment to carbon neutrality CCE’s business supports clean energy projects around the world, assists customers with reducing their Greenhouse Gas footprint and provides a resource to assist in reducing emissions to support Canada’s plan of Net Zero emissions by 2050.

The Company is obviously moving in the right direction to combine global desire for cryptocurrency with the need for it to be clean and green. But as a potential investor, what’s important to me is if they can make money doing it. The majority of Link’s revenue is currently derived from hosting not actual mining, which I like to see. Call me a wimp but the day to day fluctuations in the price of Bitcoin are a little too much for me. A more reliable, steady form of income from hosting is the kind of revenue I’m looking for. Q2 saw hosting revenue grow to $836,092 up from $689,640 the previous quarter.

We can anticipate this hosting revenue should continue to grow based on progress Link is making adding power capacity and hosting agreements. As of May 31^st, the Company had secured sites for an additional 50 MW of power-generating assets and continued to commission an existing 18.75 MW into commercial operations. To utilize that power capacity, on Jun 27^th they signed an agreement for a 40MW turnkey solution for hosting 12,000 of Atlas Mining’s latest generation Bitcoin miners. Commissioning is slated for late Q3 through Q4, 2021 with the agreement providing a profit-sharing model, in addition to the supply of power and infrastructure services. This is in addition to a 10MW agreement disclosed June 24^th with North American cryptocurrency mining company Mission World Group.

Granted Link is not profitable at this point in time. It is still very much in a growth phase where capital expenditures are outpacing current revenue. But you can see where this is headed by the hosting capacity the Company is bringing online. Additionally, they have signed a creative funding vehicle to allow the growth to continue with an $18 Million Equity Facility with Alumina Partners, LLC. Link, at its discretion, may elect to drawdown in $1,000,000 increments of the Facility as a new Offering with the terms of each Offering being determined subject to market conditions at the time of the drawdown. The Company currently has 52.3 million shares outstanding for a market cap of $27.7 million based on Friday’s close of $0.53. We know that by the end of Q3 they will be getting close to adding an incremental 50MW of hosting capacity and are committed to doing it in a carbon neutral way. I’ll be looking for continued top line revenue growth in Q3 knowing it should really ramp up in Q4.