The Graystone Company (OTCMKTS: GYST) announced jaw-dropping January revenues. The company’s revenues for January 2022 were greater than its sales for all of 2021 combined! GYST, a bitcoin mining company, booked these record revenues in a month where the cryptocurrency market was extremely bearish. With BTC on the rise, and more investors looking for ways to play the crypto rally, GYST could see a spike in interest.
This week, GYST is expected to up list to the OTCQB, which brings with it a higher accounting standard, QB companies must be current in their financial reporting, undergo an annual verification and management certification process.
This move brings even more weight to GYST’s $184,000 in January revenue.
CAN GYST’s REVENUE GROWTH CONTINUE?
Prior to last week’s massive revenue announcement, $GYST already looked primed for a big year. Graystone announced the acquisition of 50 Antminer S19j Pro mining computers. This represents a huge jump in the company’s ‘hashrate’ which is a term that refers to its computing power. GYST can now mine bitcoin at a faster rate.
The Graystone Company also laid out a plan to acquire 300 machines by the end of the year. This had some investors drooling over its potential revenue growth based on these units alone.
However, nobody could have seen this coming. Especially in a month where bitcoin prices were in the low 30s. This morning, Fortune reported FSInsight projects Bitcoin could hit $200,000 in the second half of 2022.
If $GYST produced record revenues in a Bitcoin bear market, how will those numbers look if BTC hits $200k?
HOW GYST PRODUCES REVENUE
In the revenue press release from February 3rd, Anastasia Shishova, CEO of The Graystone Company, said “It has been an amazing journey since we launched our bitcoin mining operations in September 2021 and expanded to include equipment sales in October 2021.”
GYST earns money through:
- Cryptocurrency mining
- Sales of mining equipment
- Realized gain on sales of digital currencies.
When the company started its mining operations its hashrate was 1,100 TH/s. Currently, the rate is 2,100 TH/s, by the time it attains 300 mining units that rate will be 30,000 TH/s. At today’s BTC prices GYST would produce $6k in daily revenue from the mining operation alone. If the price of bitcoin rises like many analysts are projecting, daily revenue would be between $18k and $24k/day.
GYST’s website states the company’s goal is to have 1,000 PH/s (1mm TH/s) computing power by 2024. That’s the kind of mining power that would put GYST on par with industry leaders like Bit Digital (Nasdaq:BTBT), Greenidge (Nasdaq: GREE), and Hut 8 Mining (Nasdaq: HUT).
GYST’s EARNINGS COULD IMPRESS
GYST hosts its mining units at a third-party site. This could be an advantage for the company’s profitability. GYST’s deal is at a fixed rate of ~$186 per unit per month. The value in this deal really starts to benefit GYST as its mining unit numbers start to grow, which will be occurring this year. That means $GYST may be on pace to record positive earnings. That’s something Bitcoin leaders like Marathon (Nasdaq: MARA), Clean Spark (Nasdaq: CLSK), and Bit Mining (NYSE: BTCM) can’t say.
Another advantage its mining host boasts is nuclear power, which helps make GYST stock a nice option for crypto investors who value ESG in their investments.
KEY TAKEAWAY
GYST’s monster news coupled with the bullish trajectory of Bitcoin makes it a stock crypto investors need to educate themselves on immediately!
This article is part of a sponsored investor education program.
