October 22nd, 2021 | 11:38 CEST
Bitcoin Group, BIGG Digital Assets, Coinbase - Profiting from the new crypto hype
Table of contents:
Bitcoin Group - Business is booming
The Bitcoin Group from Herford offers a trading platform for various digital currencies via bitcoin.de. Responsible for this is the 100% subsidiary futurum bank AG, which additionally provides classic securities services. As a further investment, the Company owns 50% of Sineus Financial Services GmbH, a BaFin-regulated financial services provider. Additional investments in the areas of blockchain and cryptocurrencies are conceivable.
The Company published its half-year figures at the end of September. Revenues climbed year-on-year from EUR 6.2 million to EUR 17.7 million, and EBITDA increased by more than EUR 10 million to EUR 14.4 million. The main revenue driver is the crypto trading platform bitcoin.de. The expansion of tradable cryptocurrencies helped to increase trading revenues. Per transaction, 0.5% of the trade is charged as fees by the buyer and seller, respectively. Under certain conditions, the percentage can be reduced to 0.3%. The higher the price of a single coin, the more the company earns.
A large part of the transaction profits remains with the Bitcoin and Etherium company as cryptocurrency. Thus, 3,673 Bitcoin and 10,232 Ehterium coins have been won so far. Theoretically, a small part is added with each transaction. The share, which had temporarily fallen to EUR 30.15, has now broken its downward trend and started upward. The share is currently trading at EUR 49.55.
BIGG Digital Assets - Regulation as a milestone
Canada-based BIGG Digital Assets currently owns two business units. On the one hand, there is the Blockchain Intelligence Group, which specializes in monitoring cryptocurrency transactions. To this end, it has developed crypto-forensics technology aimed at detecting illegal activity. The Company works with financial institutions, crypto companies and law enforcement agencies in this area. The second business unit is the Netcoins trading platform.
Netcoins became the first public crypto trading platform in Canada to be officially regulated on September 30. It paves the way to attract more customers to the platform, as there are quite a few trading platforms that are not regulated and will need regulation in the future. At least some of them can slip under the Netcoins umbrella, bringing customers and revenue with them. On October 20, BIGG Digital Assets announced that it holds 450 bitcoins and plans to continue growing, as management believes a long-term value of USD 100,000 per bitcoin is realistic. Customer deposits have grown from USD 45 million to USD 85 million since March.
In addition to its business units, the Company has investments in WonderFi and ZenLedger. Both companies each have a well-known investor from Shark Tank, the model for Germany's "Höhle der Löwen" format, on board. The stock was already trading at over CAD 5 in April before consolidation set in with the falling bitcoin price. Currently, the stock is trading at just CAD 1.30.
This may still be far from the company's vision. "We expect cryptocurrencies to become mainstream," emphasized BIGG Digital Assets CEO Mark Binns, at the International Investment Forum (IIF) on October 14. Further growth due to regulation in Canada is already foreseeable.
Coinbase - Partnership with Facebook
Coinbase timed its IPO on Nasdaq perfectly on April 14. Bitcoin reached its high that day before consolidation set in. For the Company itself, the IPO was a complete success. It provided the first US exchange-listed crypto trading platform. The selection of tradable cryptocurrencies is also unparalleled. The Company has over 68 million users from more than 100 countries and turned over more than USD 462 trillion in the quarter.
On October 19, it was announced that there will be a cooperation between Facebook and Coinbase. Coinbase is to store Pax dollars from Facebook's Novi digital wallet pilot project. Shortly after, it was said that senators tried to urge Mark Zuckerberg to stop the project immediately. So far, that has not happened. On the same day, a long-term sponsorship partnership with the NBA was sealed. That makes Coinbase the official crypto platform of US basketball.
The stock has gained over 35% since the end of September. The Bitcoin price and the very interesting cooperation with Facebook made the stock reach heights it has not seen since May. The next resistance is the current all-time high of 429.54 from April 14. If bitcoin continues to perform so well and the hype around cryptocurrencies remains, a test of the high is very likely.
Crypto exchanges are booming. While some are selling at an all-time high, others want to be there when bitcoin reaches USD 100,000. Thus, all three companies presented should benefit. Bitcoin Group is clearly the number one in Germany and has achieved considerable growth this year. BIGG Digital Assets has reached a milestone with the regulation in Canada. This competitive advantage now needs to be leveraged. Coinbase is the flagship of all crypto exchanges. This status is likely to stay with the Company for a long time.
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