18. February 2021 | 09:45 CET
Bitcoin Group, Upco International, Northern Data: what's the best crypto gamble?
Bitcoin has jumped above the USD 50,000 mark. For many crypto enthusiasts, this price mark is just a stepping stone towards USD 100,000. Will it happen that way? Not clear! However, what is certain is that crypto stocks are also heavily in vogue on the stock market and score with great relative strength. Especially with trend stocks, it is essential to bet on stocks with momentum. Only then can it still be enough for sustainable profits even with trends that have been in place for months.
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ISIN: DE000A1TNV91 , CA9152971052 , DE000A0SMU87
Bitcoin Group: More than Bitcoin
The German bitcoin stock par excellence is Bitcoin Group. The Company has its own trading platform for cryptocurrencies and even has a bank on offer that can be used to implement classic financial services. The Company is likely to be the first point of contact in Germany for many customers who want to position themselves around blockchain technology. Blockchain is popular because of the hype surrounding the flagship cryptocurrency Bitcoin, but above all because of its technology. It can be used to implement many useful things, such as the tokenization of assets or smart contracts, which run automatically within the blockchain.
The Bitcoin Group share is currently surfing on the wave of success surrounding the best-known digital currency. However, the stock has been a zero-sum game over the past few days. Beyond prices of EUR 70, the value should pick up speed again. Until then, the Company's stock can be considered a straggler or viewed skeptically - the fact that the value is not quoted at the high gives pause for thought.
Upco International: This tenbagger is simply crazy
Upco International's stock has also shifted down a gear. However, given the rapid price rally of recent months, this seems healthy - after all, the stock's value has increased tenfold since November. But what can a tenbagger still offer investors today? Upco combines mobile services with an innovative app and blockchain technology. Its bread-and-butter business involves buying up smaller telephony providers to give them access to cheaper voice or SMS contingents. The next step is for smartphone users acquired as customers as part of the acquisitions to use Upco's app. This app offers money transfer, messaging and telephony and aims to compete with the big players in the payment industry with slim fees.
Although the stock has already had a rapid ride, the Company's market capitalization is still less than EUR 20 million. In the past weeks, Upco followed positive developments of Bitcoin very strongly and showed excellent relative strength again and again, even during periods of weakness. At its peak, the share has corrected its annual high by more than 40% and is currently picking up again. The value is a hot potato for gamblers but has given them great pleasure for weeks. Fasten your seat belts and hold on tight!
Northern Data: Computing power as a product of the future
The Northern Data share is well on track given the crypto hype. The data center operator benefits from the fact that computing capacity is needed around blockchain and crypto mining. Video rendering is another task done in Northern Data's data centers. In the past five days, the stock has already gone up nearly 30%. If analysts such as Hauck & Aufhäuser are to be believed, the share could rise significantly from its current level of EUR 140; the analysts consider EUR 210 to be realistic.
To what extent this price target can be reached is still up in the air and also depends on the further development of Bitcoin. While the Company benefits from other developments besides blockchain, and computing power is a product in demand, the Bitcoin hype seems to be adequately priced in at the moment. The small cap Upco International should still offer greater leverage on the cryptocurrency - despite all the price gains that have already been made.