3 Cryptocurrency Stocks Capitalizing on Bitcoin's Rise
Cryptocurrencies like Bitcoin, Ethereum, and Litecoin are captivating investors and even non-investors the world over right now. After the first big cryptocurrency breakout everyone saw late last year and early this year many investors are taking more time to investigate what the companies within this space are doing to capitalize. The days of simply mentioning the words "blockchain" or "bitcoin" are over and now investors are becoming much more savvy
What Companies Opened the Eyes of Investors During Bitcoin Boom 1.0?
- Eastman Kodak Company. (KODK) blazed the scene with a play on bitcoin mining and their own version of a token built for securing photo media. After the 352% run the stock had in January, not much more has been said for the next fintech endeavor for the once leading film company but this is a clear example of how early investors profited on the rising price of bitcoin during "bitcoin boom 1.0".
- DPW Holdings (DPW) was an energy company before changing course. The sniff of the word "blockchain" and "cryptocurrency" appealed to investors and saw shares of this company increase by nearly 10 times in market value. After bitcoin consolidated in the first quarter, DPW has since pulled back but this is another clear example of how early investors profited on the rising price of bitcoin
- Marathon Patent Group, Inc. (MARA) saw its epic rise during the first bitcoin breakout after restructuring the company, completing a reverse split, and becoming compliant with Nasdaq again. The company acquired a digital asset technology company, Global Bit Ventures Inc. in November and saw the response in the market by the monstrous increase in market cap by nearly 6 times.
- But it wasn't just smaller companies getting their feet wet, it was also large companies who got in on the action too. Online shopping site owner Overstock (OSTK) began accepting crytpcurrency as payment while also working to develop its own token. Share prices jumped by over 100% to highs of nearly $90/share on this first bitcoin bump.
Though the first breakout for bitcoin prices saw so much action in many stocks, it could truly be the next generation of investors who will harness the real investment opportunity and not just "playing the hype".
So, with such a hot climate not only based on hype & excitement but also true cutting-edge technology, it should come as no surprise that investors ought to be looking for the next round of companies involved in the development of cryptocurrencies & blockchain technology ahead of the next boom in bitcoin prices:
Atlas Cloud Enterprises, Inc. (ATLEF)
Market Cap: $43.493M
At the heart of Atlas Cloud is an IT company focused on backup systems and storage. However, the recent boom for bitcoin seems to have been an easy alternative for Atlas to begin targeting. What sets this company apart from most is a mix of savvy entrepreneurship and well-timed entry into the market.
Atlas Cloud aims to become the lowest-cost producer of digital currency mining and blockchain infrastructure. The company owns a facility currently undergoing preparations for use as a digital currency mining operation located in Electric City, WA. It's important for investors to note that the company's facility is undergoing upgrades and has an anticipated completion scheduled for this quarter.
Atlas Cloud's five-megawatt (5.0 MW) Grant County Data Centre is expected to commence operations utilizing 80% of the currently dedicated 3.0 MW of available power with a potential to host up to 1,700 ASIC S9 Antminer machines.
Furthermore, the recent appointment of Charlie Keiser to the role of CEO could be a boon to the company's future strategies. His experience in the technology space spans decades and most notably includes key roles in the development of things like GoCoin and CoinOutlet. Most recently he was Chief Marketing Officer and EVP of Corporate Development at BTCS Inc. (OTCQB: BTCS), where he helped take the company public in a reverse merger as the first pure play publicly traded digital currency and blockchain company.
Market Cap: $133.477B
Since its early days in 1911, IBM keeps pushing the margin on new technologies used in today's cutting-edge industries. The company that's behind Watson and spearheading cloud technology innovation is beginning to take full advantage a blockchain service for over 400 clients in a number of industries. The company's blockchain platform allows users to take advantage of a fully managed, blockchain as-a-service (BaaS) offering, which is then served via the IBM Cloud. This gives an organization the ability to monitor and track any number of transactions as well as giving a company the ability to keep records on a secure network.
IBM estimates that its blockchain offering will greatly impact the financial services sector. The company expects that overall, financial service transaction disputes will decrease from $100 million each year to $30 million. Furthermore, IBM is also expecting to lower the overall resolution time by 77%. The BaaS platform could be a key driver for IBM, a company focused on new technologies and reinventing themselves along the way.
Bitcoin Investment Trust (GBTC)
Market Cap: $2.61B
If there's one stock that could benefit from an immediate rise in the price of bitcoin, Bitcoin Investment Trust could be one of them. Shares of GBTC are the first publicly quoted (on OTCQX) securities invested in and deriving value from the price of bitcoin.
Investors can gain direct exposure to the price movement of bitcoin through a traditional investment vehicle. Additionally, investors don't need to fumble with finding out how to open an ancillary "crypto account" with glaring barriers to entry. The challenges of buying, storing, and safekeeping bitcoins are all taken care of via Bitcoin Investment Trust and though investors do not own bitcoin directly, this stock allows them to profit from the cryptocurrency's volatility.
Focus for Investors
The cryptocurrency and blockchain technology industries are in recovery mode as of late especially considering the move that the price of bitcoin has made over the last 10 days. But overall, the market has performed well since the early inception and creation of the digital currency during the first decade of the 21st century. In fact, the price of bitcoin has risen by more than 200,000% since April 20th of 2012.
These three cryptocurrency and blockchain technology companies have several things in common. Each company could benefit big from another surge in bitcoin pricing and they could all help to bring blockchain technology to the mainstream. With the current price trend of bitcoin, investors shouldn't write off any viable chance at an early opportunity in what could be the next big evolution in technology.
Disclaimer: The author of this article owns ZERO shares of any company mentioned in this article. The Author was paid by JSG Communications LLC a marketing company currently engaged by Full Service Media LLC, to publish this article. Please read the full JSG COMMUNICATIONS LLC disclaimer here.