Shares of SET-listed Jasmine Technology Solutions (JTS) skyrocketed 6,635% in 2021, spurred by its plan to ramp up its Bitcoin mining business while many other firms involved in the cryptocurrency business have also reported excellent returns that outperformed the market last year.
Asia Plus Securities said the share price of JTS spiked from around 2 baht at the beginning of the year to 130 baht as of Dec 27, raising the market cap of JTS from 1.1 billion baht to 91.84 billion baht during the same period.
The price surge reflects the Thai cryptocurrency market's growing population and investors' enthusiasm.
According to CoinDesk.com, Bitcoin reportedly generated returns of about 75% as of Dec 27. Its price moved around $50,050 and peaked at $68,990 in November.
Takit Chardcherdsak, a research manager at Asia Plus Securities, said JTS's share price is more volatile than Bitcoin and outperformed the digital currency even though the company needs to bear higher expenses of maintaining and monitoring computers for mining and electricity bills.
"Cryptocurrency is a high-risk and highly volatile asset. Investors should be careful when investing in anything involved with the coins as well as JTS due to its drastic price jump," Mr Takit said.
Other listed companies with investments in cryptocurrencies such as Brooker Group (BROOK) also saw their prices surge. BROOK's share price rose 233% year-to-date and fluctuated throughout the year.
Several stocks involved in the initial coin offering (ICO) business also saw a jump in growth last year such as XSpring Capital (600%), Country Group Securities (90%), Siam Commercial Bank (41%) and Kasikornbank (22%).
Besides companies with direct investment in cryptocurrencies and ICOs, companies that accept cryptocurrency as a payment method for their products and services also enjoy an increase in share price even though it's less noticeable, except Jay Mart whose price was up 188%.
Other companies from the group include Major Cineplex Group (7.6%), Origin Property (7.6%), Sansiri (1.67%) and Ananda Development (2%).
He said the cryptocurrency market seems to continue on an uptrend in the medium and long term this year.
Among the factors driving surges in crypto prices is wider acceptance as an intermediary of payment.
The US Securities and Exchange Commission also approved Bitcoin-based exchange traded funds and other new products related to cryptocurrencies last year.
However, Mr Takit said investors who are interested in investing in cryptocurrencies in 2022 should also follow the Federal Reserve's direction for its quantitative easing tapering and interest rate hikes which will cause massive fund mobilisation and market volatility.
Cryptocurrencies will become extremely volatile when there is fund mobilisation because their prices have no ceilings and floors and are harder to control, Mr Takit said.
