Established Companies Positioning to Invest in Blockchain and Cryptocurrencies

NetworkNewsWire Editorial Coverage: Despite the skepticism in the market about the legitimacy and longevity of bitcoin and other cryptocurrencies, the underlying blockchain technology is something that tech firms and the financial sector cannot ignore. While cryptocurrencies’ surging values and wild price fluctuations have made many established organizations reluctant to invest in this market, Bloomberg reports that Goldman Sachs is setting up a trading desk for cryptocurrencies (http://nnw.fm/ayFK8). This positions the company to be the first large Wall Street investment banker to trade in digital currency. Businesses such as ChineseInvestors.com, Inc. (CIIX) (CIIX Profile) are taking advantage of the deeper rooted blockchain market that seems to offer infinite application. Xunlei Limited (XNET), a cloud-based computing company, is another company extending its reach by incorporating blockchain technology in its offerings, and still others showing interest in the cryptocurrency, bitcoin and blockchain sector include MGT Capital Investments, Inc. (MGTI), Riot Blockchain, Inc. (RIOT) and the retailer Overstock.com, Inc. (OSTK).

The number of corporate investors in blockchain companies hit a record high in 2017, with large banks and financial service organizations leading the way. Among the growing list of recognizable names, Google’s parent company, Alphabet Inc. (NASDAQ: GOOG), is another big investor in blockchain (http://nnw.fm/guBC3). Increased application and acceptance are subsequently pushing the value of cryptocurrencies, the tokens used in blockchain technology, higher. In 2017, they surged to $600 billion from just over $18 billion at the start of the year (http://nnw.fm/wVAZ0).

Additionally, initial coin offerings (ICOs) are overtaking traditional funding options for blockchain start-ups. Several huge deals were negotiated during 2017, including the $107 million raised by R3, a company developing a blockchain database for use by global financial institutions. Coinbase, a digital currency exchange based in San Francisco, raised $100 million in equity funding.

Committed to Cryptocurrency

ChineseInvestors.com, Inc. (CIIX) was founded in 1999 and has developed into a leading financial website for Chinese-speaking investors in China and the United States. The company’s clients trade in the OTCQB Venture Market, NASDAQ and NYSE public markets, among others. With a core focus on investor education, the site offers various products and services such as real-time market analysis, commentary and investment education. The company also offers advice to smaller companies on growth strategy, while providing support services for advertising and public relations.

ChineseInvestors.com saw its first-quarter investor relations (IR) revenues grow 186 percent over comparable revenues reported in the first quarter of 2017. During the 2017 fiscal year, the company’s IR sales made a 130-percent, year-over-year leap to $808,362 (http://nnw.fm/53Ge6). ChineseInvestors.com is becoming more selective about its client companies in the process, and is entering into more cash compensation arrangements. Now it proposes to extend its educational coverage to bitcoin and the cryptocurrency market.

The company has stated its commitment to the future of bitcoin and other cryptocurrencies, and has thus decided to spin off its wholly owned cannabis subsidiaries (CBD Biotechnology Co., Ltd. and ChineseHempOil.com) to focus efforts on its new cryptocurrency division. Despite China’s ban on cryptocurrency trading on domestic regulated exchanges, company CEO Warren Wang remains highly optimistic about the future of bitcoin and other cryptocurrencies, noting that Chinese investors are bypassing the ban to trade on unregulated offline platforms.

In an interview with the Bad Crypto Podcast, Wang said: “The Chinese investor is an advocate of gambling. Most today trade bitcoin and other cryptocurrencies on the offline market. The Chinese-speaking people within China and also in North America — the U.S. and Canada — are excited about bitcoin.”

Cryptocurrency also provides investors the ability to diversify their portfolio and shift away from traditional investment opportunities.

“Real estate is very expensive and so are labor and rents in China. Investors have a high savings rate. They now would like to make bitcoin and other cryptocurrencies part of their assets. They are trading offline on platforms of decentralized exchanges to do so,” Wang explained.

With a strong commitment to cryptocurrency education and awareness, ChineseInvestors.com broadcasts a daily video, called Bitcoin MultiMillionaire, from the NYSE. The company also hosts and has installed a Bitcoin ATM in the lobby of its headquarters in San Gabriel, California. This installation enables the company to reach the Chinese-speaking community worldwide with bitcoin marketing, even though Chinese regulators have banned sales of bitcoin.

“Although there has been some volatility in the cryptocurrency market, Bitcoin’s price resilience is impressive … With each rebound in price relative to news, we see more evidence that the concept of digital currency is taking root with investors and the general public alike,” Wang stated in the press release (http://nnw.fm/mU7QS). “In addition to providing skilled investors with news about digital currency, ChineseInvestors.com, Inc. hopes to satisfy the average person’s curiosity about cryptocurrency, including how to purchase Bitcoin. Moreover, the underlying Blockchain Technology is extremely compelling and we expect to see many interesting developments in this area. Bitcoin ATMs are just one example of how this area is moving forward. We are excited to make this service available to the Chinese community.”

Wang advised industry entrepreneurs to be patient with Chinese investors while they learn about digital wallet management and the processes for trading in bitcoin and other cryptocurrencies. He expressed confidence that China may organize a regulated market for cryptocurrency trading in the future.

Comparable Companies

Multinational technology company Xunlei Limited (XNET) is an online service provider investing in cryptocurrency from its base in Shenzhen, China. The company’s cloud-based platform enables users to access, manage and consume digital media content. Its Xunlei Accelerator product enables users to accelerate digital transmission over the internet through various products, such as Green Channel and Offline Accelerator. Mobile Xunlei allows users to search, download and consume media content on mobile devices. Xunlei’s OneThingCloud is a LinkToken mining platform designed to be mobile-compatible for digital currency mining. Mid-October 2017, the company launched OneCoin, a cryptocurrency that has experienced a dramatic increase in value, more than 80-fold since launch.

MGT Capital Investments (MGTI) focuses on acquiring and developing a portfolio of cyber security technologies. The company also addresses various cyber threats through the implementation of protection technologies for mobile and personal devices, as well as corporate computer networks. MGT is also actively engaged in bitcoin mining. In December 2017 the company announced its agreements to secure reliable and adequate electric power in Sweden and that it expects to start deployment of mining rigs early in 2018. The initial phase of the agreement will provide MGT with 25 megawatts of power, enough for more than 15,000 Bitmain S-9 mining rigs.

Originally known as Bioptix Pharma, Riot Blockchain (RIOT) has experienced rapid growth following its decision to reorient its focus from biopharmaceuticals to blockchain technology. The company’s stock soared from $7 in November 2017 to over $46 in mid-December. Riot Blockchain’s mission is to establish itself as an authority on blockchain technology, while offering investors valuable exposure to the blockchain market. The company invested in Verady, LLC, which provides accounting and auditing services to the digital currency market. It also owns a share in Coinsquare, a Canadian-based cryptocurrency exchange. Riot Blockchain has majority ownership of TessPay, a blockchain-based payment resource for wholesale telecom carriers.

Overstock.com (OSTK) is a U.S.-based online, award-winning retailer, which, through its Medici Ventures INC subsidiary, is also focused on blockchain applications with the potential to disrupt industries such as capital markets, finance and banking, property registration and voting identity verification. Medici recently raised over $2.2 million in a seed funding round for mobile voting platform, Voatz, which aim to use blockchain technology and biometrics improve voting infrastructure security (http://nnw.fm/4nqGD).

Many companies are concerned about the volatility in the cryptocurrency market. However, there is increasing acceptance that blockchain technology is here to stay and will continue to have a growing impact on the way the world transacts and does business. These companies are taking the lead by positioning themselves to capitalize on this opportunity and develop their enterprises as leaders in this industry.

For more information on ChineseInvestors.com, please visit: ChineseInvestors.com (CIIX)

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