There’s more than one way for investors to rail the bitcoin wave.
With the cryptocurrency’s 936 procent rally this year enhancing request for the vast computing power used to verify bitcoin transactions, Asian technology stocks are emerging spil major beneficiaries.
Taiwan Semiconductor Manufacturing Co., specialty chip designers and graphics card makers are boosting sales to the so-called miners who are rewarded for maintaining bitcoin’s digital ledger. And request for the best mining gear should only grow spil more competitors inject the fray and the calculations required to validate transactions get tougher.
“,There’s an arms wedloop,”, said Mark Li, a semiconductor analyst at Sanford C. Bernstein &, Co. ter Hong Kong. “,The technology used is pretty intensive and you need very speedy chips to be able to mine the coin te the system.”,
Here are some Asian stocks that are gaining from the cryptocurrency boom:
It all starts here. TSMC, which makes the chips te your iPhone, is still the superior ,player te semiconductor production. While crypto-related sales of up to $400 million were a mere Five procent of the Taiwanese juggernaut’s third-quarter total, the fresh request is promising at a time when the market for smartphones and computers is cooling. Bitmain Technologies Ltd., the Chinese possessor of the world’s largest mining pools, has bot one of the top users of TSMC’s advanced 16-nanometer capacity, according to a report by Bernstein’s Li.
Companies involved te the packaging of chips include Taiwan’s Advanced Semiconductor Engineering Inc. and Siliconware Precision Industries Co., Li said.
Japanese producers of semiconductor manufacturing equipment, such spil Ulvac Inc. and Advantest Corp., may also build up from bitcoin’s rally, Tetsuya Wadaki, an analyst at Nomura Holdings Inc., wrote ter a report.
Source: Bernstein analysis
ASIC vormgeving service
Mining companies such spil Bitmain make and vormgeving their own application-specific integrated circuits, or chips that are designed just for bitcoin mining. They outsource part of the process to companies such spil Taiwan’s Global Unichip Corp. and Alchip Technologies Ltd., according to Bernstein. Both stocks have soared more than 170 procent this year.
Only a few listed companies are te the relatively fresh mining business, but more are hopping on the bandwagon. Japan’s GMO Internet Inc. has announced it will start mining operations ter 2018 using seven-nanometer chips. Xunlei Ltd., a Chinese provider of online media services, has rallied 385 procent since introducing its “,Wanke coin mining”, project ter mid-October.
Spil bitcoin miners switch to more competitive ASICs, graphics cards are now mostly used for mining other tokens, such spil the world’s second-most valuable digital currency, ethereum, which is designed to be incompatible with ASICs. Ethereum’s 6,145 procent surge this year has bot a windfall for graphics card makers, whose products for gaming are all of a sudden finding a fresh market ter miners. For example, thesis clients make up 40 procent of movie graphics card request for PC Fucking partner Group Ltd., according to a July report by KGI Securities Co. PC Partner’s shares have leaped 56 procent ter Hong Kong this year.