MI3 Market Alert: One of the most trusted name in the crypto mining business

Mario Drolet President of MI3 Communications Financières Inc. (MI3) released a technical note at market open today on HIVE Blockchain Technologies Ltd. (TSXV: HIVE | OTCQX: HVBTF) for exclusive distribution on InvestorIntel. In this note, MI3 highlighted the following points on HIVE Blockchain Technologies Ltd.

  • First publicly listed blockchain infrastructure company that bridges blockchain and cryptocurrencies to traditional capital markets.
  • HIVE owns state-of-the-art GPU-based digital currency mining facilities in Iceland and Sweden, which produce newly minted digital currencies like Ethereum continuously as well as cloud-based ASIC-based capacity which produces newly minted digital currencies like Bitcoin.
  • Rebounding since $0.085….  strong Volume … crossed and tip toe 200DMA at $0.29
  • Traded over 53 million shares over the last three trading session …
  • Support: S2; $0.24    S1; $0.27   Resistance:   R1; $0.32    R2; $0.40

About HIVE Blockchain Technologies Ltd.

HIVE Blockchain Technologies Ltd. is a growth oriented, TSX.V-listed company building a bridge from the blockchain sector to traditional capital markets. HIVE owns state-of-the-art GPU-based digital currency mining facilities in Iceland and Sweden, which produce newly minted digital currencies like Ethereum continuously as well as cloud-based ASIC-based capacity which produces newly minted digital currencies like Bitcoin. Its deployments provide shareholders with exposure to the operating margins of digital currency mining as well as a growing portfolio of crypto-coins.


Disclaimer: This MI3 Technical Note produced by MI³ Communications Financières is neither an offer to sell, nor the solicitation of an offer to buy any of the securities discussed therein. The information contained is prepared by MI3, emanating from sources deemed to be reliable. MI3 Communications Financières makes no representations or warranties with respect to the accuracy, correctness or completeness of such information. MI³ Communications Financières accepts no liability whatsoever for any loss arising from the use of the information contained therein. Please take note that for compliance purposes, all directors, consultants or employees of MI3 Communications Financières are prohibited from trading the securities of the company and MI3 Communications Financières is a shareholder and do not intend to sell any shares during the distribution of this note.

The technology force preparing Wall Street for bringing cryptocurrency to Main Street

Investors are now actively seeking to access and invest in the digital asset market (such as the cryptocurrencies). The unfortunate part is most broker dealers, family offices, and asset managers don’t have the tools to facilitate digital asset management services for their clients.

The U.S. securities brokering market is estimated to be valued at US$ 145.4 billion. In 2017 the US Cryptocurrency trading market reached US$ 6.4 billion and it’s estimated by 2020 the same market will reach as high as US$ 10.4 billion. The professional broker/dealer sub-market for digital assets is estimated to be a US$ 213 million market as of 2020.

The US Cryptocurrency trading market is set to grow from US$ 6.4 billion (2017) to US$ 10.4 billion by 2020

Alt 5 Sigma, Inc. (private) is a digital assets trading, exchange, and custodian services platform focused on providing digital asset management services to institutional investors seeking exposure to the digital asset ecosystem. Alt 5 Sigma’s platform is built on the foundation of Security, Accessibility, Compliance, and Transparency.

Alt 5 Sigma’s platform offers FINRA and SEC registered broker dealers the ability to provide cryptocurrency trading to their clients. By utilizing best practices in cybersecurity, cold storage, insurance coverage, compliance, and audited account reporting, they can provide related back-office services to safeguard cryptocurrencies. This makes the Alt 5 Sigma platform a financial institution-grade solution.

Cryptocurrency transaction with Alt 5 Sigma trading platform

Alt 5 Sigma bridges the gap between cryptocurrencies and the overwhelming majority of U.S. investors who are unfamiliar with them, or not interested in using exchanges on their own. The Alt 5 Sigma platform is bolstered by state of the art cold storage services through recognized third parties in providing a platform safe from fraud that relies on the same proven communication standards as those used by traditional securities exchanges.

A summary of the Alt 5 Sigma digital asset trading platform offering

Alt 5 Sigma’s business model

Alt 5 Sigma’s revenue generating model is based on making a small percentage fee on every transaction. Alt 5 Sigma incentivizes their institutional broker/dealer clients with a cash rebate per transaction on the amount invested via the cryptocurrency trading platform (50% of transaction fee).

Meet some of the key Alt 5 Sigma management

Alt 5 was founded by financial industry specialists who understand the institutional needs for simple, safe, and efficient platforms to help manage their client’s portfolios. The team includes:

  • André Beauchesne – Chairman and CEO. Andre is a serial entrepreneur with 35 years experience in management.
  • Taras Kulyk – President & Chief Operating Officer. Taras is an experienced technology executive with a background in FinTech, blockchain/DLT, digital mining and financial advisory (M&A, capital raising/structuring).
  • Corey Szames – Chief Technology Officer. Corey is an experienced information technology manager with over 20 years of experience in software development. He is also a full stack developer focusing on blockchain development, artificial intelligence and big data modeling.

In conclusion, Alt 5 Sigma offers a drop-in solution/platform that lets SEC and FINRA registered broker-dealers seamlessly offer their customers access to cryptocurrency trading and investing. Or put simply, Alt 5 Sigma is ‘helping Wall Street deliver cryptocurrency to Main Street’. Alt 5 Sigma is currently not yet listed but intends to IPO soon offering ~25% of the Company for US$10 million.

[Note from the Publisher: InvestorIntel.com now offers this platform for trading on our site. Please click on the banner ad on the right side of the site or click here to access. Let us know what you think!]

Offering proof of a definite conflict free cobalt supply chain

Given an end to the US-China trade war appears imminent, and China is considering introducing stimulus measures to boost conventional and electric car sales, cobalt is looking likely to have a good year in 2019. Any further announcements that help the electric vehicle (EV) boom will be a positive for cobalt stocks.

Cobalt demand vs supply

The EV boom continues to grow in strength leading to rapid increase in cobalt demand from a small base. Any device that has a lithium-ion battery in it for rapid charge and discharge needs cobalt. Actually there is more cobalt than lithium in your cell phone battery.

Cobalt supply remains heavily dependent on the Democratic Republic of Congo (DRC). Some DRC cobalt supply has recently been withdrawn by miners such as Glencore, Katanga Mining, and ERG. This shows how vulnerable cobalt is to DRC supply disruptions and lower prices causing supply to be withdrawn. The combination of strong demand and reduced supply should support cobalt prices to rise from their March 2019 lows.

The DRC holds the world’s largest reserves of cobalt. It’s also the world’s top cobalt producer, providing more than 65% of global supply. The DRC is a challenging place for miners to do business and mining in the country has been linked to human rights abuses, including child labor. In 2014, UNICEF estimated that around 40,000 children were involved in artisanal mining in the DRC putting pressure on multinationals to trace the cobalt they use.

Big companies like Apple are indicating that they will only buy cobalt from ethical sources. This puts a lot of pressure on the unethically sourced cobalt supply chain.

Global cobalt reserves (tonnes)

Blockchain can be used to trace the source of cobalt

Many companies are now looking to blockchain technology to trace supplies of cobalt from the DRC. Blockchain is the technology behind the cryptocurrency bitcoin. It provides a shared record of data across a network of individual computers rather than a single data base or individual party.

Cobalt Blockchain Inc. (TSXV: COBC | OTCQB: COBCF) is a Canadian resource company with an exploration and development business including cobalt assets in the DRC. The Company is addressing the need to pursue conflict free cobalt mining by working with partners to develop a blockchain based system that will provide certainty and further assurance that all minerals they procured have been ethically sourced. Cobalt Blockchain will use this technology where supply chain may be mandated by clients. The Company also has a license and traceability system in place for tin, tantalum, and tungsten.

There already are examples of the use of blockchain in the mining industry such as for diamond and gemstone producers that are tracing the entire chain, from mine to buyer.

Cobalt Blockchain also has cobalt trading potential from shared concessions in the DRC

Cobalt Blockchain has a definitive supply agreement for the provision of 40,000 tonnes per annum of cobalt concentrate and has begun initial arrangements to set up its cobalt trading facility in the DRC. The facility’s 1,000 square metre depot will include storage, assay lab, clinic and office capabilities. The depot site will also incorporate perimeter fencing and security equipment.

Cobalt Blockchain has entered into two definitive joint venture agreements for cobalt/copper concessions, totaling over 48 square kms. The company owns a 70% interest in Alpha Cobalt SAS, a joint venture between Cobalt Blockchian and a private local partner, and also owns an 80% interest in Cobalt Blockchain SAS, a joint venture between Cobalt Blockchain and also a private local partner in the DRC.

Cobalt Blockchain’s senior management have over twelve years of experience working in the DRC and have a proven international track record in exploration success and the trading of certified conflict free, child labor free minerals. Adding value to their company will be the use of blockchain giving them proof of a definite conflict free cobalt supply chain.

Cryptocurrency versus gold – Which one is better?

Cryptocurrencies have potential to be the new digital money. Bitcoin, Ether (Ethereum), Litecoin and a few thousand other “crypto” currencies have become very popular, despite some huge volatility.

Bitcoin (BTC) has been around for ten years (since 2009), but it is still considered a birthing technology that is prone to serious price swings thanks to market fluctuations and perhaps manipulation. In late 2017, Bitcoin reached a high of nearly $20,000 and left many early crypto investors feeling like they had made the right choice. The news surrounding the currency’s rise caused a mad rush to all things crypto. Then in 2019 the crypto space crashed back to earth, with Bitcoin now trading at US$4,076 a coin. However for those that got in right at the beginning they are still up an amazing 2,913%.

One advantage of Bitcoin is, it is said to have a limited supply as there are only 21 million Bitcoins that can be mined in total. Bitcoin transactions work on the blockchain – a decentralized ledger to record all transactions. Bitcoin mining is where decentralized hard drives process all the global Bitcoin transactions, and in return they are paid in Bitcoin.

The Blockchain

One great thing that came along with cryptocurrencies was Blockchain. It could be the future for all digital document storage as it was designed to be a secure digital ledger that can be added to, but not altered. Blockchain should survive even if some cryptocurrencies fail.


Gold is also very limited in its supply, as it is so rare, and expensive to find and mine. Also gold has many centuries of history of being a valuable metal, and a store of wealth. From the ancient Egyptians to the modern U.S. Treasury, there are few metals that have had such an influential role in human history as gold.

In 1792, the US Congress passed the Mint and Coinage Act. This Act established a fixed price of gold in terms of U.S. dollars. Gold and silver coins became legal tender in the United States. With gold now being a US legal tender many gold rushes occurred throughout the 1800s. Since a single gold nugget could make someone a millionaire, prospectors rushed to far flung corners of the planet in search of riches. Gold has been giving humans gold fever since the ancient Egyptians. There’s no single reason why gold has been seen as an exceptionally luxurious metal throughout all of human history other than its shiny and attracts the eye, and it is quite rare.

The talk is gold may rally in 2019 and outperform all asset classes, pushing the price towards $US1,500. Some also say the next cycle peak could reach $1,900 an ounce, maybe sometime next year.

Gold versus Cryptocurrency

Certainly in the past year gold has been the better bet, as gold has maintained its value while most cryptocurrencies (led by Bitcoin) have fallen heavily. And yes it is probably true that older investors like gold and the younger ones like cryptos. Gold has been around since ancient times and has credibility as an investment. Cryptocurrencies are very much new to the market and are a volatile asset, for now, that will one day find their place in the finance market. So probably a good idea to own both, just be careful to choose an established safe cryptocurrency.

Given current sentiment I think gold will do better than Bitcoin in 2019. But I could easily be wrong. I am happy to hear your views in the comments section below.

Some gold related mining companies that we follow

Setting a new precedent for rubies, emeralds and the colored gemstone industry, and it’s free.

The legend of Fura and Tena is a part of the cultural heritage of the area of exploitation of emeralds in Colombia and there are two mountains that represent them: 840 meters of height (Tena) and 500 m (Fura). They are a pride and a sign of the natural richness of the region. The legend is part of pre-Columbian stories that have been preserved over time thanks to the oral tradition of the people of the region.

Fura Gems Inc. (TSXV: FURA) is a gemstone mining and marketing company. Fura Gems has been inspired by what was the husband and wife legend of Fura and Tena where they were “joined together as one”, and the cultural heritage it represents in Colombia.

Together with their trusted partners, Fura’s initial focus includes mining ruby assets in Mozambique and emeralds in Colombia. The company also markets gem treasures across reliable global selling platforms.

Gemstones sell for very high prices on the global market

Rough gemstone prices

Coscuez Emerald Mine Colombia

Colombia is the source of the world’s finest emeralds and accounts for 50% of the value supplied in that market. In 2017 Fura agreed to purchase 76% of the Coscuez Mine. Historically one of the world’s most significant emerald mines, having been in operation for over 400 years. It covers an area of 46 hectares that includes exclusive rights for the exploration, construction and mining of emerald deposits as granted by the Government of the Republic of Colombia.

Fura’s Mozambique Ruby Licenses

Mozambican rubies currently account for approximately 50% of the world’s current ruby production. Deposits have been considered to be the largest found in recent decades. Fura holds an 80% effective interest in four ruby licenses in the Montepuez District of Mozambique. Strategically located they comprise of 39,424.51 hectares covering five concessions of highly prospective ground. Initial findings from the existing artisanal pits show both primary and secondary mineralisation with higher and lower quality rubies

Mozambique rubies

Provenance Proof Blockchain launched

On February 11, 2019 Fura piloted the Provenance Proof Blockchain for the colored gemstone industry. This is designed to promote industry transparency and is available to stakeholders across the colored gemstone supply chain, free of charge. It is the first colored gemstone blockchain, open to everyone in the gemstone industry and uses software that is free of charge and can be accessed via a smartphone.

This technology has been successfully applied to the diamond industry and will be a groundbreaking addition to the colored stone industry that will set a new precedent for best practices and responsibly sourced emeralds globally. Fura’s initiative will be part of a wider strategy to provide a consistent and transparent supply of colored gemstones to the market.

Dev Shetty, President & CEO of Fura, commented: “We firmly believe that the application of blockchain technology to the colored gemstone industry will raise best practices and serve the entire supply chain. This is also a significant moment for Fura and Colombia, as we have the opportunity to set a new precedent for responsibly sourced emeralds, and Fura is proud to have supported this project from its inception.”

Fura’s management is highly experienced in gemstones (rubies and emeralds) in Mozambique and Zambia, with over 75 years combined experience. Management expects the Company to be producing positive revenue by Q2 2019 from Colombia, and Q3 2019 from Mozambique.

Fura is committed to bringing a consistent supply of responsibly sourced colored stones to the international market. Using blockchain technology in this way, consumers and retailers are now able to connect more with the emeralds they buy and to select suppliers according to their values. The Colombian emerald industry is transforming itself into a global leader for responsible sourcing in the colored gemstone industry, aided by blockchain technology. And it’s free.

COBC’s Mintrax is set to document conflict free cobalt mining

About 10% of the world’s cobalt supply is produced by artisanal miners in the Democratic Republic of Congo (DRC). Artisan mined cobalt can be a concern due to issues such as child labor. The London Metal Exchange has put forward plans to ban cobalt tainted by human rights abuses. The only way to do that is to track the cobalt source or origin.

Cobalt Blockchain Inc. (TSXV: COBC) (COBC) has 12 years of on-the-ground experience in the DRC. The Company is pursuing a conflict free cobalt mining and trading business in the DRC with local artisanal miners, while implementing a blockchain based platform to ensure traceability of conflict free minerals. COBC along with its partners have a proprietary blockchain based certification protocol called Mintrax™.

Mintrax (Mining tracker) will be piloted on COBC’s own cobalt operations within the DRC and will also explore the possibility of using Mintrax for other operations, for example, diamonds and gold that requires conflict free assurance. COBC has supply and off-take agreements for 40,000 tonnes per annum of cobalt concentrate, and is commissioning a cobalt hydroxide plant in the DRC.

A two front attack 

COBC is focused on two fronts, to expand its metals trading business in the DRC and building a portfolio of the same conflict-free mineral properties. The expansion in the DRC is to address the growing global need for conflict free cobalt.

What is Blockchain?

Blockchain technology enables distributed public ledgers that hold immutable data in a secure and encrypted way to ensure that transactions can never be altered. You can write onto a block, but never delete data that exists on that block. While Bitcoin and other Cryptocurrencies are the most popular examples of blockchain usage, blockchain is finding a broad range of uses. Data storage, financial transactions, real estate, asset management, and many more uses including tracking minerals source of origin.

Benchmarking using automated trust

The company’s aim is for the Mintrax™ blockchain platform to be the benchmark in “automated trust”. This will assure security and transparency of the certified record for ethically sourced minerals. The vision is to kick start not just a digital transformation of the mineral supply chain but an ethical transformation as well, all centered around the companies concept of automated trust based on their blockchain platform technology.

Cobalt will remain a key battery ingredient for decades

Cobalt has been shown to be a key metal for efficient energy storage, stability, and safety in batteries. Various research studies are in place to try and reduce the amount of cobalt needed, but no solution to reduce cobalt at its current usage will be in position for widespread use for at least a decade or longerIn the very near future Britain, France, India and Norway all want to exclude gas and diesel in favor of clean vehicle technology, and many other countries have electric car sales targets in place. For example, both France (2030) and Britain (2040) have introduced aggressive timelines to achieve this.

COBC’s plan is to supply future demand for cobalt from ethically sourced materials, all documented and certified under blockchain technology. As more and more companies seek to use ethically sourced cobalt and other conflict metals, the demand for COBC’s products will also increase.

2018 was a big year for tech, so what’s in store for 2019?

Technology innovation is moving so fast you can be forgiven for thinking it’s moving too fast. What was predicted one year ago to be the next big thing may have already been replaced with the latest and greatest concept.

2018 was a big year for innovation in technology with that trend expected to continue in 2019. For entrepreneurs this presents a challenge as not all new technology ends up catching on, so it’s important to be careful with R&D dollars and investments. Remember technology is a tool to enable business to run more efficiently and more economically.

Big technology trends in 2019

Three big trends for 2019 evolve around 5G, the Internet of Things (IoTs), and Artificial Intelligence (AI). Many other new technology trends will be enabled under these umbrellas accelerating research and development (R&D) in blockchain, mobile app development, autonomous vehicles, data analytics, smart cities and buildings, and ideas yet to be thought of.

5G is the next generation of radio access (wireless) networks delivering predicted speeds of up to 100 times faster than 4G. 5G is starting to be rolled out now in selected capital cities around the globe. Many new smartphones in 2019 will offer 5G connectivity and hence incredible online performance.

The Internet of Things will involve all things being connected online, and will be supported by 5G networks. For example a motion sensor in your home will inform your smartphone of a possible intruder, or you can remotely turn on your washing machine from work.

Artificial Intelligence is a general term for machine learning. We already see this with online “bots”, some personal robots or assistants (Amazon “Echo” etc), and with the way big companies such as Facebook use their “like” system for targeted advertising. Of course this is just the very beginning of AI, and it will perhaps be the biggest technology trend of the next decade.

Blockchain is a secure decentralized digital ledger that can’t be altered. It’s possible that in the future every recorded piece of digital data can be stored this way. It can mean all transactions an individual or a company makes can be recorded. Looking ahead it is quite likely we will follow China’s lead and use our smartphone to simply purchase all our goods wherever we go. A cashless society recorded on the blockchain.

A brief look at a few of the innovative technology related companies we follow at Investorintel

Cobalt Blockchain Inc. (TSXV: COBC) is working with partners to develop a blockchain-based reporting platform to provide greater certainty of provenance and further assurance that all minerals (notably cobalt) procured are ethically sourced.

Global Blockchain Technologies (CSE:BLOC) “BLOC” is an investment company that provides investors access to a mixture of assets in the blockchain space, strategically chosen to balance stability and growth. BLOC invests in new markets enabled by blockchain technology. On December 17, 2018, BLOC made a key acquisition by acquiring 100% of the issued and outstanding shares of X2 Games. BLOC and X2 Games have initiated a comprehensive strategy to optimize BLOC’s assets towards gaming, eSports, and AI. BLOC’s assets will be leveraged to support X2’s pursuit of disruptive gaming interfaces.

Global Cannabis Applications Corp. (CSE: APP | OTCQB: FUAPF) designs, develops, markets, and acquires data technologies for the cannabis industry by applying artificial intelligence, blockchain, and crypto-currency to improve cannabis health sciences. The Company mission is to build a technology-enabled community to improve health and wellness.

Internet of Things Inc. (TSXV: ITT) operate as an Internet of Things technology accelerator and industry investment acquisition company. In other words they buy up early stage promising IoTs companies.

NanoSphere Health Sciences Inc. (CSE: NSHS) do not technically fit into this category but they are doing some good things with bio tech. One of their great products is the only patented nano-particle delivery system to transport the highest level of therapeutic agents directly to the bloodstream, therefore removing the need for needles.

Siyata Mobile Inc. (TSXV: SIM | OTCQX: SYATF) provide an all in one 4G device that reduces clutter on company fleet dashboards. The tablet style device runs mobile apps that eliminate the use for a cell phone, a 2 way radio communications device, or even a GPS navigation system. Siyata plan to be first to market with a 5G dedicated in-vehicle device.

By no means is this a complete list but rather a brief look at some key 2019 technology trends, many of which will be showcased at the upcoming Cantech Investment Conference in Toronto Canada, January 29-30, 2019. InvestorIntel will be attending as a media partner, so we hope to see you there.