Comanche moves into crypto after months of tourism losses

Comanche moves into crypto after months of tourism losses

MAI-listed Comanche International (COMAN), a business software developer, is entering the cryptocurrency market through subsidiary Coman Crypto, which is expected to start operating in the fourth quarter.

Share prices of other listed companies with investments in cryptocurrencies have risen sharply from the beginning of the year, reflecting the growing popularity and value of the market.

Comanche chief executive Somboon Sukheviriya told the Stock Exchange of Thailand on Oct 11 about the establishment of Coman Crypto.

Coman Crypto has registered capital of 60 million baht and is preparing to operate four types of businesses, including providing all kinds of crypto exchange services, issuing cryptocurrency, and receiving cryptocurrencies as a payment method.

Darunee Sae-tung, Comanche's chief financial officer, said the company sees the potential of the digital money business and decided to diversify its investments from tourism into the cryptocurrency market.

"After the new firm is established, we will start working immediately. Coman Crypto is expected to generate revenue from the cryptocurrency business in the fourth quarter," Ms Darunee said.

Comanche International's core business product is Comanche Hotel Software and Data Base, which is a property management system, offering software solutions for hotel managers to enhance their operating efficiency.

The company has a backlog worth 24-25 million baht waiting to be delivered and installed, she said. Customers will start allowing the company to install the software from October, Ms Darunee said.

She said the company expects even after Thailand's reopening, large hotel operators will hold back from investment in hotel management software because they need to monitor the situation and see if demand returns.

Comanche expects the tourism industry to start recovering this quarter, but revenues and net profits will remain negative because of losses the past three quarters.

Most tourism companies were directly affected by the pandemic. Comanche recorded 53.9 million baht of revenue and 11 million baht in losses during the first six months, said Ms Darunee.

Another listed company with direct investments in cryptocurrency is Jasmine Telecom Systems (JTS), a subsidiary of Jasmine International and Brooker Group, a real estate consultancy. JTS announced on Aug 26 it plans to invest in Bitcoin mining, aiming to be the largest Bitcoin mining farm in Asean by 2024.

The company signed a contract for the first 1,200 Antminer S19J Pro miners, a Bitcoin mining hardware, with Bitmain Technology. JTS's share price has spiked 2,568% year-to-date.

Brooker Group has reported investing 1.22 billion baht in cryptocurrencies and planned to invest around 70 million baht more in the third quarter. Its share price is up 83.7% year-to-date.

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