11. January 2021 | 10:15 CET
Bitcoin Group, BIGG Digital Assets, Square Inc.- incredible potential!
The market penetration of cryptocurrencies and the tokenization of crypto assets are still at an early stage. The benefits of blockchain-based transactions are clear. Bitcoin marked an all-time high last week at USD 41,000, quintupling in 12 months. Professional investors are becoming increasingly interested in the crypto asset class. Ultimately, the triumph of crypto depends on regulators and general acceptance. However, the multi-faceted Group of payment service providers or specialized (software) solution providers are also interesting for investors. After all, these are cutting themselves an ever-larger slice of PayPal's colossal pie. We introduce you to promising companies, some of which are still relatively unknown, that have huge upside potential.
time to read: 3 minutes by Carsten Mainitz
BITCOIN GROUP SE - Record: holdings exceed EUR 100 million
Bitcoin Group SE operates Bitcoin.de, a trading platform for digital currencies, through its core investment futurum bank AG. The Group recently announced that it had already reached its self-imposed 2020 annual target of 900,000 customers on the cryptocurrency trading venue at the beginning of November. Last week, the Company informed that its own cryptocurrency holdings had surpassed the EUR 100 million mark, reflecting bitcoin's strong price growth. As recently as December 1, the Company's holdings of cryptocurrencies were "only" EUR 60 million.
"As the operator of one of the largest cryptocurrency trading venues in Europe, we are very pleased about the dynamic development of bitcoin and the continuous growth of the community - both on the part of private and business customers," commented Marco Bodewein, Managing Director of Bitcoin Group SE.
The core business is indeed mostly independent of the value of cryptocurrencies. But of course, when Bitcoin prices explode, the value of the Company's holdings also comes into focus. Given a current market capitalization of EUR 300 million, the proprietary stock accounts for one-third of that value. In recent days, investors took advantage of the positive news to take profits. The share fell by around 20% from its high. The Group will benefit from the further establishment of cryptocurrencies. Interim consolidations are healthy.
BIGG DIGITAL ASSETS INC - CAD 12 million raised in a new capital round
BIGG Digital Assets aims to build an ecosystem for compliant and regulated crypto businesses. The business activities will be conducted through two Companies, Netcoins and Blockchain Intelligence Group.
Last Friday, the Canadians announced a capital increase (bought deal) in the amount of CAD 12 million. 24 million share certificates will be issued at a price of CAD 0.50 and a half associated warrant with a maturity of 24 months and a strike price of CAD 0.70. In addition, there is an option to increase the offering by an additional CAD 1.8 million by January 28. With the funds raised, BIGG Digital Assets intends to increase its long-term bitcoin investment holdings, invest in the Netcoins platform's growth, and more generally in working capital. With this move, the Company is cleverly taking advantage of the positive momentum in the wake of the rising bitcoin price and good operational performance, creating great room for further growth. Figures for December show trading volumes on the Netcoins platform of CAD 33 million. According to the full year 2020, trading revenues have increased almost twelvefold in the Company's statement.
The Company is valued at around CAD 83 million at a current price of CAD 0.59, excluding the new shares. After the capital increase, diluted shares will increase by about a quarter. Netcoins aims to establish itself as the first regulated crypto trading platform in Canada, and the review process is underway. The planned IPO of Coinbase in the US could also have a significant boost for the Group's corporate valuation. Any news and progress from these areas will be reflected in significant share price increases, in our opinion.
SQUARE INC - Head-On Attack on PayPal
Square is a financial services and mobile payments Company based in San Francisco. The Company has created an extensive ecosystem with software solutions and hardware products where vendors can turn mobile devices and computers into payment and point-of-sale solutions with the combination of software and hardware. Private individuals can also benefit from Square's services.
The core of the portfolio is the Cash App. This app enables individuals, organizations, and business customers to send and receive money. Furthermore, one can use this service for bitcoin transactions. CEO Jack Dorsey has big plans and wants to gradually develop into a strong competitor to PayPal and profit from the vast market volume. Dorsey is no stranger to the industry. The co-founder and CEO of Twitter has a proven track record of building successful businesses.
In 2015, Square entered on the stock exchange floor with a share price of USD 9 and has since written a success story. Currently, the Californians are valued at USD 109 billion at a price of USD 241. There is no end in sight yet to the growth.