Not many financial assets quadrupled in 2020 and gained another 60%+ already in 2021. That’s been the story of Bitcoin, which crossed $50,000 for the first time ever Tuesday morning with no signs of slowing down as more companies pour into the cryptocurrency and everyday people understand what it is and how to build value through investment.
Unlike the so-called “crypto bubble” in 2017 that was primarily retail buyers, the rise over the last year is largely attributed to the likes of PayPal (NASDAQ: PYPL), Square (NYSE: SQ), Mastercard (NYSE: MA), Microstrategy (NASDAQ: MSTR) and other corporations making big investments in Bitcoin. The latest signal that the digital currency is here to stay was Tesla (NASDAQ: TSLA) buying $1.5 billion in Bitcoin, adding that it intends to give customers the option to buy an electric vehicle with Bitcoin.
Expanding upon a project begun in 2018, Vancouver-based tech company Hello Pal International Inc. (CSE: HP)(OTC: HLLPF) is giving its users an easy way to participate in the digital currency evolution. The company, which provides international live-streaming, social messaging and language learning mobile apps for iOS and Android, is launching a “Crypto-Mining Initiative” in partnership with Shanghai Yitang Data Technology Co. Ltd.
Yitang currently manages 35,000 mining machines spread across the North, North West and South East parts of China and has pre-existing contractual arrangements with mining machine vendors to acquire many more in the future.
The unique platform will allow Hello Pal users to become active in mining Bitcoin and Ethereum, something that is too expensive and complex for most everyday people. Cryptocurrency miners earn tokens for being the first to solve complex solutions to hashing puzzles, effectively building “blocks” for the blockchain in which data is securely stored. Unlike the early days of crypto, it is impossible nowadays to profitably mine Bitcoin with a regular home computer. Specialized hardware called a Graphics Processing Unit (GPU) or an Application-Specific Integrated Circuit (ASIC) is necessary. A single ASIC can cost into the thousands of dollars.
Today, almost all serious crypto mining is conducted in purpose-built data centers with banks of ASICs located in regions with inexpensive electricity, as power consumption is the number one cost in crypto mining. No surprisingly, many of these data centers are in China, where inexpensive electricity abounds.
Apropos, China is the primary revenue driver for Hello Pal, although its reach is constantly broadening. In January, revenue hit a record CDN$2.8 million, up 32% from December. 10% of revenue was generated outside China in January, up 6.5% month-over-month. The company now has over 5.4 million users spanning more than 200 countries.
With the surge in appetite for Bitcoin, excitement towards mining is also moving skyward. To that point, mining companies MicroBT, Bitmain Technologies and Bitfury are all looking at joining the public domain, according to Renaissance Capital.
Per the agreement, Hello Pal users, either individually or as a group, will be able to leverage Yitang’s contractual arrangements with mining machine vendors to purchase Bitcoin and Ethereum mining machines. Users will have the option to either make the purchase alone or create a group and/or to buy machines in full or take fractional ownership. Yitang will host and operate the miners, which will be personally identifiable to each purchaser or group.
Mined BTC (Bitcoin) and ETH (Ethereum), the world’s two most popular cryptos, will be credited to user’s digital wallets each day. Yitang, a leading provider of digital wallet services with over USD$70 million in crypto-assets under management, is currently working with Hello Pal to reconfigure the HP digital wallet, as well as re-introduce Hello Pal’s digital utility token branded “Palto”. The Palto token, first introduced in 2018 as part of the plan to make crypto a seamless financial component of HP’s global domain, is being enhanced and fully backed by blockchain technology where it can be used across the HP app ecosystem as a borderless transfer of value, including rewarding livestream hosts for their efforts.
Hello Pal Founder and Chairman KL Wong commented in today’s press release, “The recent activity and interest in cryptocurrency presents us with a unique opportunity to introduce cryptocurrency to our users, as well as to bring cryptocurrency users to our platform.”
To provide a sample of what’s in store, Hello Pal has purchased several BTC and ETH mining rigs that will demonstrate to users what is can be accomplished with a purchase and how to build value in their digital wallet through the novel platform. The Bitcoin mining machines (Whatsminer M31S) each have a hash rate of 74T hash/s operating at an efficiency of 44w/T, while the Ethereum machines have MSI 5700 graphics cards at their core with an estimated hash rate of 400M. Going forward, Hello Pal intends to add more computers to its portfolio.
Management says more details are forthcoming that will differentiate Hello Pal’s Crypto-Mining Initiative from (often complicated) cloud mining services available today.
Shares of HP have been gaining steam in 2021, rising from 21 cents last month to 72 cents currently, as the crypto frenzy rages on and Hello Pal initiates a user-friendly way to get people in the mix at the exciting mining level.
Legal Disclaimer/Disclosure: While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our article is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment. Furthermore, it is certainly possible for errors or omissions to take place regarding the profiled company, in communications, writing and/or editing. Nothing in this publication should be considered as personalized financial advice. We are not licensed under any securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this article is not provided to any individual with a view toward their individual circumstances. Baystreet.ca has been paid a fee of thirty thousand dollars for Hello Pal advertising from the company. There may be 3rd parties who may have shares of Hello Pal and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this article as the basis for any investment decision. By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing Baystreet.ca, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.
