Bitcoin just hit $9,300 and NIA is 1,000% sure that US Global Investors (GROW) is about to become the #1 biggest Cryptocurrency play in the entire market! On Friday morning at 10:35AMEST, NIA announced US Global Investors (GROW) at $3.86 per share as its new #1 Cryptocurrency stock suggestion. GROW was already up 25% at the time of NIA’s suggestion, but NIA said not to worry and predicted that GROW would finish the day above $5 per share and reach $6-$10 per share next week.
After NIA’s alert, GROW exploded $1.05 or 27.2% to an official 1PMEST closing price of $4.91 per share. If the market had been open for a full trading day, GROW would’ve closed above $5 per share just like NIA predicted. In afterhours trading, GROW gained an additional $0.37 per share with a final trade at 4:59PMEST of $5.28 per share!
Three full decades before the creation of VanEck Vectors Gold Miners ETF (GDX), GROW created the world’s first gold/silver mining mutual fund: US Global Gold and Precious Metals Fund (USERX). After launching in 1976 with only $4.8 million under management, USERX over the following 11 years saw its assets increase by 9,992.5% to a high in 1987 of $484.44 million.
By then, GROW had launched a second gold/silver mining mutual fund: US Global World Precious Minerals Fund (UNWPX). After launching at the end of 1985 with only $10.8 million under management, UNWPX saw its assets explode by 10,900% over the following 23 years to a 2008 peak of $1.188 billion.
In April 2015, GROW launched its first ETF: U.S. Global Jets ETF (JETS) with $4.853 million under management. Over the last 31 months, JETS has seen its assets increase by 2,105.2% to $107.02 million.
On June 28, 2017, GROW launched its second ETF: U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU) with $2.413 million under management. Over the last 5 months, GOAU has seen its assets increase by 341.4% to $10.65 million.
For the last several years, the CEO of GROW Frank Holmes has been very bullish on Cryptocurrencies. His #1 goal for GROW has been to create a Bitcoin ETF, but the SEC said that it wouldn’t approve any Bitcoin ETFs unless Bitcoin first has a futures contract.
In search of an alternative way to give GROW shareholders exposure to Cryptocurrencies, GROW invested into the IPO of Hive Blockchain (TSXV: HIVE) at $0.30 per share and Frank Holmes became non-executive Chairman of HIVE. GROW’s 100% owned subsidiary purchased 10 million shares of HIVE while its 30% owned subsidiary purchased 7 million shares of HIVE, giving GROW exposure to 17 million HIVE shares and net ownership of 12.1 million HIVE shares. HIVE closed last week at CAD$2.83 per share valuing GROW’s net stake in HIVE at CAD$34.243 million or USD$26.944 million.
GROW also has $2.973 million in cash and $1 million in restricted cash. All together, the value of GROW’s net stake in HIVE plus GROW’s cash and restricted cash adds up to $30.917 million. GROW has only 15.167 million shares outstanding for a market cap at $4.91 per share of $74.47 million. If we subtract the value of GROW’s net stake in HIVE and cash+restricted cash from its market cap, GROW’s actual business is being valued at a very low $43.55 million.
In December, Bitcoin will begin trading on the CME futures exchange, which NIA believes will open the door for GROW to launch a Bitcoin ETF. After Bitcoin futures begin trading, look for GROW to officially announce plans to launch a Bitcoin ETF. If NIA is correct, NIA believes that GROW’s main business will deserve a minimum valuation of $200 million, which added to GROW’s HIVE stake+cash would give GROW a market cap of $230.917 million and divided by 15.167 million shares outstanding would value GROW at $15.22 per share.
GROW surpassed a major long-term key breakout point on Friday of $4.40 per share and it did so on enormous volume of nearly 6.3 million shares!
To see how big GROW’s upside potential is, take a look at its 21-year chart. GROW’s breakout that occurred on Friday looks nearly identical to the breakout that GROW made 12 years earlier in November 2005 due to soaring investor demand for gold/silver mining mutual funds/ETFs. GROW exploded from $3.50 per share on November 1, 2005 to a record high on December 29, 2006 of $36.35 per share for a gain of 938.6% in 14 months! At GROW’s record high, its market cap exceeded $550 million!
Just like how investors demanded gold/silver mining mutual funds/ETFs in late-2005, they are demanding Bitcoin ETFs today. GROW could be ready to make a run similar to the 938.6% gain it made between November 1, 2005 and December 29, 2006!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has received compensation from a third-party for covering GROW of $30,000 cash. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.