Well, we did it. We finally entered the crypto space by purchasing a small amount of Canaan Inc. ($CAN) on the Nasdaq) today – a new kinetic rocket! Canaan Inc. is a Chinese company that builds crypto mining rigs – theirs is called the Avalon Immersion Cooling Miner.
The price of bitcoin has rocketed lately and this has caused a lot of buzz around blockchain / cryptocurrencies. On Saturday I was listening to The Market Huddle and Lynn Alden who I believe is one of the most knowledgeable experts on bitcoin right now. The demand for cryptocurrencies is increasing due to macroeconomic forces like the dollar’s perceived value decreasing and slowly losing its status as the word’s reserve currency.
Due to the nature of the hash behind bitcoin, mining the coins becomes more energy intensive with each coin mined. So, as bitcoin and other blockchain applications continue to grow in popularity, so will the demand for these sorts of mining tools.
Well, not much is going on in the Uranium and Silver markets these days. Uranium and Silver are rangebound and don’t seem to want to do much of anything these days. For us, thats OK since part of our kinetic rockets strategy is writing out of the money covered calls – which will expire without being assigned if this sleepy action continues.
In other news, bitcoin seems to be retracing some of its surge as of late. As of this writing its at $30,943. We would love to see it retrace all the way back to $23K – for us, that would be go time, however that may never happen. We’ll see.
Alexco Resources ($AXU) which is one of our new kinetic rockets, announced some exciting drill results today:
ALEXCO EXTENDS BERMINGHAM HIGH-GRADE MINERALIZATION AT DEPTH, INTERSECTS 3,583 G/T SILVER OVER 8.76 METERS TRUE WIDTH AND OTHER SIGNIFICANT RESULTS
We are excited to see this extension of mineralization at depth and look forward to more news as Alexco continues to add to their existing silver resource at Bermingham.