Thai companies shell out millions to join the Bitcoin mining bandwagon

China might have labeled Bitcoin and cryptocurrency mining “obsolete” in the country. But its exit from the sector has proven to be a boon for countries like the USA, Russia, and Kazakhstan where most miners have shifted base. Smaller players have also emerged to fill in the gaps, and among them is Thailand. Here, large-cap companies are investing millions into crypto mining operations in a bid to capitalize from the booming industries.

A recent Nikkei Asia report has suggested that this million-dollar interest from institutional players is also helping in driving forward retail interest. Thus, adding that around 3.6 million people owned cryptocurrencies in the country in 2021, a surge of 400% from last year.

Eye on the prize

Notable entries into the Thai crypto mining space include the financial and real estate adviser Brooker Group, which has invested over $36 million in a Bitcoin trading business and set aside another $2 million for crypto mining. Similarly, computer wholesaler and software developer Comanche International has also invested around $1.6 million in a cryptocurrency mining business and a crypto trading platform.

Such ventures have also spelled well for companies such as Jasmine Technology Solutions. It spent $99.2 million, buying 1,200 Bitcoin mining machines from Bitmain Technology. Furthermore, the company plans to add 5,100 machines this year in a complete transition from telecom to crypto. This has resulted in the company’s stock price driving up about 90 times higher than it was a year ago, the report noted.

This was a clear indication of the merits of branching into the cryptocurrency industry, an analyst at Kasikorn Research Center was quoted by Nikkei Asia as saying,

“Bitcoin is booming and the act of listed firms and other financial institutions starting to join Bitcoin trading and mining helps confirm that the arrival of Bitcoin and other cryptocurrencies is a trend that we should not miss… [It also} boosts confidence in digital currency and encourages small investors to join.”

Booming business

Small investors in Thailand have indeed jumped onto the bandwagon. Notably, previous reports have indicated that an increased interest in mining has been seen across the economic strata. An Al Jazeera report from last month had indicated a boost in retail crypto mining since China enacted its ban in September last year.

Many of them scooped up the scrapes being sold by fleeing miners at throwaway prices, with one of them reportedly setting up a small solar-powered crypto mining unit for about $30,000. Thus, earning it all back within three months.

The report also quoted a mining equipment reseller who believed the boom was caused by both economic instabilities due to the pandemic and a more deepened belief in the future of cryptocurrencies. He also claimed that around 100,000 such miners were presently operational in the country.

These entrepreneurs might be in for an economic setback since the nascent sector is set to be significantly taxed by the government. Unofficial reports have suggested that a 15% tax might be levied on not just the income generated through cryptocurrency trading and investments, but also mining. However, a detailed announcement is yet to be made by the government.