Blockchain technology, also known as Distributed Ledger Technology (DLT), has attracted a lot of attention from industry and investors.
Many analysts consider the financial sector to be the primary user of the blockchain concept. Such an emphasis is in part because the most popular application of blockchain technology is in the cryptocurrency space.
Meanwhile, cryptocurrencies, including ,,,, were hot for the past year. For example, year-to-date (YTD) Bitcoin has returned more than 70%. And in the past year, Bitcoin is up nearly 450%.
Fry J and J-P Serbera from the University of Bradford, UK, point out:
"Bitcoin is the first widespread use of blockchain technology. However, blockchain has an identity and reach that may go much further. There seem to be two main conditions for blockchain applications. These conditions are convenience and consensus / trust. "
Further research by the US National Institute of Standards and Technology highlights:
"Blockchains are tamper-resistant and tamper-resistant digital ledgers that are deployed in a distributed manner (i.e., without a central repository) and usually without a central authority (i.e., a bank, corporation, or government)."
We spoke earlier about investing in exchange traded funds with a focus on blockchain. Today we are expanding the discussion to another UK company that was among the top winners on the London Stock Exchange (LSE). It is the cryptominer Argo Blockchain (LON 🙂 (OTC :).
The company's stock quote has become somewhat of a proxy for cryptocurrencies, especially for the price of Bitcoin. Let's take a closer look.
Argo Blockchain
The London-based Argo Blockchain mines Bitcoin and its facilities in North America. The group is proud to be the only cryptocurrency mining company listed on the LSE. Its market cap is shy of £ 1 billion (or about $ 1.4 billion).
Argo recently announced that it will invest in a new facility in Texas. Part of the costs will be increased by a new issue of shares. Given the price increase of the shares in recent months, such a step makes financial sense. The current higher market valuation makes it easier to raise money.
In the past year, ARB inventory has increased by more than 4,700%. Put another way, the proverbial $ 1,000 invested in the stock a year ago would now be worth about $ 48,000. YTD, ARB shares have returned about 700%. On March 4, the stock closed at 266.57p ($ 3.55 for US stocks).
Argo Blockchain Weekly Chart.
On March 3, the company made headlines when it announced that CEO Peter Wall, as well as other interested employees, would receive salaries in Bitcoin starting March 1. Argo "will automatically convert daily salaries from fiat to Bitcoin. Market rate using Toronto-based Satstreet exchange using their & # 39; Bitcoin Savings & # 39; service."
According to the latest trading statement, the group mined "129 Bitcoin or Bitcoin Equivalent (together" BTC ") in February, compared to 93 BTC in January. 222 BTC … At the end of February, the company owned 599 BTC."
What can investors expect from ARB shares for the rest of the year? Since Argo & # 39; s fortunes track Bitcoin returns, the stock price is likely to be very volatile. It is a speculative asset that may be suitable for some portfolios.
Bottom Line
In addition to ARB stock, another was also located in Essex, U.K. established company, Online Blockchain (LON :), in the spotlight. The company incubates cryptocurrency startups and develops blockchain technology products.
YTD, OBC shares are up 51%, while the stock has returned about 500% in the last 12 months. On March 4, the stock closed at 75p. The market cap is shy of £ 11 million (or about $ 15.3 million).
Online Blockchain Weekly Chart.
Readers interested in the blockchain, financial technology (fintech), or cryptocurrency space may also consider investing in an exchange-traded fund (ETF). Examples include:
Amplify Transformational Data Sharing ETF (NYSE 🙂
Capital Link NextGen Protocol ETF (NYSE :);
First Trust Indxx Innovative Transaction & Process ETF (NASDAQ :);
Siren NASDAQ NexGen Economy ETF (NASDAQ :).
