Companies that get involved in blockchain see increases in stock. We see this happening all over the place, but why? First, let’s take a look at some of the companies seeing this stock increase, then we’ll dig a little deeper into the why.
The most recent company to benefit from blockchain involvement is Riot Blockchain Inc. (NASDAQ:RIOT), formerly known as Bioptix Inc. Before its name and sector changed, Riot Blockchain made diagnostic machinery for the biotech industry, and its stock was small news, with three reverse splits in five years. However, things changed when it started investing in cryptocurrency-related businesses. In fact, its stock has more than doubled itself, simply by becoming involved with blockchain.
Another example is 360 Blockchain Inc. (OTC:BKLLF), formerly 360 Capital Financial. When 360 Blockchain refocused its investment plan on blockchain-related companies, it saw a rise in stock of 300%.
The wins don’t stop here. Overstock.com Inc. (NASDAQ:$OSTK) launched a Securities and Exchange Commission-compliant digital tokens exchange, resulting in a stock increase. Goldmoney Inc. (TSX-V:$XAU) announced it will be offering clients the ability to trade bitcoin and ether, along with the ability to store the assets in auditable and insured vaults. This announcement alone was enough to raise its stock, before the company had even done anything.
Everybody wants in. But why should involvement with blockchain be enough to increase a company’s stock? The answer lies with bitcoin, and the heights the cryptocurrency has reached.
Bitcoin has soared an incredible 700% this year, releasing new digital tokens faster than we can keep up, and increasing its market capitalization from $17 billion at the start of this year to $260 billion now. These are amazing feats, but there are still some out there who are wary of the cryptocurrency and becoming involved directly with it. This could be because bitcoin derivatives haven’t yet started trading on a major exchange, or because exchange-traded funds haven’t yet been approved, or even because of the limited amount of trusts and notes holding digital assets. The solution to this is blockchain and investing in blockchain-related stocks. By doing so, investors don’t have to deal with cryptocurrencies directly, and so there is less of a risk factor behind their investments.
Bitcoin continues to soar, and blockchain is the way to hop on the wings of bitcoin’s flight.
Featured Image: twitter
