Today, we need to have a look again at Santo Mining Corp (OTCMKTS:SANP), which is focused on digital cryptocurrency mining and transactions’ operations. Readers will remember well our previous articles on the stock, as every time an opportunity has arisen, we have been there to point it out.
Have a look at our previous coverages if you have not gone through them before:
- “Santo Mining Corp (OTCMKTS:SANP) Delivers Big Gains”
- “Santo Mining Corp (OTCMKTS:SANP) Climbing Up The Charts“
What’s new on this name?
We need to again address the company, as it noted a meeting with Canoe Pool (Chongqing Yuhuan Technology Co., Ltd ), a growing Bitcoin mining company. Both companies said in an update that they are expecting to create together “the world’s best and biggest Bitcoin Cash Pool.”
We believe that the news excited the market and our readers should get to know it.
But, there is more.
Since the company is now operating in the Bitcoin industry, the market is pushing up the share price when the price of Bitcoin increases.
Have a look how the share price increased on December 13, 2017:
Now, compare those charts with the recent increase in the price of the Bitcoin:
We will provide all the new details in this new article. But, let’s revisit the company’s business model for those who are getting to know SANP right now.
Santo Mining Corp is headquartered in Lauderdale, Florida. The company’s business goal is to make mining accessible to all users regardless of age, location, investment, and technical experience.
Check the way the company presents itself to the market. We believe that the following statement resumes very well the intention of SANP:
“We want to give our miners the opportunity to try out cryptocurrency mining pool and earn cryptocurrency rewards. On a larger scale, we hope to contribute to the development of mining services and subsequently to the development, establishment and adoption of cryptocurrencies both as a currency and as an economic system.” Source
On November 16, 2017, the company released that it had a working day meeting with Canoe Pool regarding its ongoing cooperation.
Those who could not read our previous coverage should know that Canoe Pool will be merging with SANP. Both companies are working to expand the U.S. operations for Canoe Pool’s bitcoin mining operations. We believe that the agreement will be very positive for SANP, which is acquiring new know-how in mining.
Additionally, the transaction should increase its assets, which will be appreciated by the market. In our opinion, this merger is the most significant catalyst of SANP, so we encourage readers to be alert about new information in this regard.
They are working on a Bitcoin BTC mining pool management software server for mining hardware systems, which will be operated by Canoe Pool America and independent miners.
The company has already shipped 10 systems to the US; 4-E9, 2-BlackTigerSharks, 2-Bitmain S9 & 2-Ebang.
This is the new information that the market should have appreciated.
But, there is more.
It seems that the CTO, Mr. Bansbach, is ready to do beta testing on power consumption, heat dissipation & hash mining time rate, including synchronization of the mining pool management software.
What’s the expected capacity?
This is the most interesting part. The company is expecting to purchase 100 to 200 machines for the Canoe Pool America mining location, to be announced in the very near future. The objective is to have “over 2,000 owned and operated hardware mining systems. As per today’s Bitcoin BTC value, the monthly profit for each mining system is between $380 to $420.”
And then what?
In the second phase, the companies will develop Bitcoin Cash BTH mining pool management server for the mining of Bitcoin Cash BTH by Canoe Pool America. It is, in our opinion, the news that excited the market the most.
We appreciate that Bitcoin Cash has been chosen. It is a new hard fork that, we believe, will return interesting returns. Read the following article about it if you want to know more: “Bitcoin Cash (BCH) Offering Users and Investors Practical Solutions and High Valuations”
Mr. Matthew Arnett, Vice President of Santo Mining, was quoted. Please have a look at his words and note that he is focusing on long-term shareholder value before anything else. This is the type of management that we always need to have:
“Our goal is long-term shareholder value; this will be done by ensuring that each company has a clear understanding of capital resources, market knowledge, technical innovation to better deliver superior mining blockchain payouts for the pool and its members.” Source
Short Sellers and Conclusion
There is another interesting fact that we need to point out here. Short sellers are closing their positions. Please note in the following table how the short interest has been decreasing:
|Date||Short Interest||% Change||Avg. Daily Share Volume||Days to Cover||Split||New Issue|
|Nov 15, 2017||169,151||100.00||1,137,192,375||1.00||No||No|
|Oct 13, 2017||219,155||100.00||1,733,040,145||1.00||No||No|
|Sept 15, 2017||342,939||14.91||29,155,320||1.00||No||No|
|Aug 31, 2017||298,440||-90.67||151,036,803||1.00||No||No|
|Aug 15, 2017||3,198,333||100.00||48,601,737||1.00||No||No|
In our opinion, when market participants saw that the company was entering the Bitcoin industry, they commenced to exit their short positions. This is good news.
Currently trading with a market cap of $6 million, SANP is an exciting story among small caps. In our opinion, if the company is able to grow at the pace of the Bitcoin, the share price should be much higher than where it is today. Hence, this seems to be a great business profile to follow closely.
We will be updating our subscribers as soon as we know more. For the latest updates on SANP, sign up below!
Disclosure: We have not position in SANP and have not been compensated for this article.
Image courtesy of Zach Copley via Flickr