CryptoCurrencyWire Editorial Coverage: Experts say cryptocurrencies like bitcoin and Ethereum are here to stay1 and could even someday eclipse hard cash2. Encryption techniques regulate these digital currencies, which operate independent of governments and central banks and are organized through an online network known as a blockchain. Bitcoin has really exploded in recent months, hitting record highs in August 2017 that surpassed $4,000 per coin.3 On September 1, bitcoin once again reached an all-time high, hitting $5,000 per coin on a major index.4 There is certainly money to be made in the booming bitcoin market, and savvy companies like ChineseInvestors.com, Inc. (CIIX) (CIIX Profile), MGT Capital Investments, Inc. (MGTI), Bitcoin Services, Inc. (BTSC), Bitcoin Investment Trust (GBTC) and SinglePoint, Inc. (SING) are doing just that.
ChineseInvestors Inc. (CIIX) (www.ChineseInvestors.com), a leading financial information website for Chinese-speaking investors, on August 14 announced the launch of a cryptocurrency education and trading subscription service on the company’s premier financial website, www.Chinesefn.com. Chinesefn.com offers real-time market commentary, analysis, and educational services to Chinese-speaking investors. The new cryptocurrency subscription service will cover timely news, as well as analysis relating to all aspects of the emerging digital currency landscape, including coverage of cryptocurrencies like bitcoin and Ethereum, industry trends, price movement, sector-related stocks like ETFs, and more.
CIIX’s new subscription service will serve Chinese-speaking investors who desire to cash in on burgeoning bitcoin market opportunities but do not have a complete understanding of the concept of digital currency or how the cryptocurrency system works. Through its subscription service, CIIX plans to provide Chinese-speaking cryptocurrency newcomers with essential knowledge, including straightforward explanations regarding cryptocurrency basics, how to buy cryptocurrency, and clear-cut information about trading guidelines. Through this advanced education and trading subscription service, CIIX is striving to become the premier Chinese educational source for digital currency news and information.
This service is of particular importance as Chinese regulators recently announced their ban on initial coin offerings (ICO) in the country, affecting the way projects raise cash or other currencies through cryptocurrencies. Authorities say they are initially focusing their investigation on 60 major ICO platforms.
CIIX also recently announced plans to launch the very first Chinese daily video news broadcast from the NYSE covering digital currency and blockchain technology (http://nnw.fm/sHs7U). These videos will be produced by professional financial media company Wall Street Multimedia, an independent news agency broadcasting from the NYSE and one of the first Chinese media companies to cover trends and developments in the U.S. securities market. Wall Street Multimedia is the only Chinese media outlet with the capabilities to instantly and simultaneously access information from several major U.S. stock exchanges and to conduct onsite interviews within those stock exchanges. It is anticipated that the broadcasts will begin airing in October, providing timely information and exclusive analysis regarding all aspects of the digital currency world.
Additionally, CIIX in July announced that its wholly owned subsidiary, Chinesehempoil.com Inc., had commenced acceptance of bitcoin payments, enabling customers to purchase the company’s hemp-based health products, foods and beverages using bitcoin (http://nnw.fm/w3pbB).
While bitcoin is a notable part of CIIX’s business plan, the company is also focused on taking its share of the legal cannabis industry, which is forecast to grow at a 27 percent CAGR through 2021 (http://nnw.fm/n7jVK). In 2016, CIIX started laying the groundwork to capitalize on the growing demand for cannabidiol-based (CBD) nutrition and health products, with a natural focus on Chinese-speaking markets. By the end of 2016, the company had begun implementing its plans for a new website and mobile application in order to facilitate online distribution of CBD oils for the booming global medical marijuana industry. While marijuana use is illegal in China, cannabis-based oils, including hemp-based CBDs, are legal, thus opening a potential market of nearly two billion people for CIIX.
The company also has a foothold in China’s burgeoning skin care industry with its new line of cannabidiol-based skin care products. The company has filed a record of its first line of hemp-infused skin care products with the China Food and Drug Administration (http://nnw.fm/3nlZM) and expects to launch in the next couple months.
Another cryptocurrency-related play is MGT Capital Investments, Inc. (MGTI), which is one of the largest U.S.-based bitcoin miners. The company has an ongoing focus on an expansion model to significantly increase its crypto assets. On September 1, MGTI announced it has increased a standing order with Bitmain Technologies for S9 Antminer Mining rigs, increasing the number ordered to more than 1,500. Shipment is anticipated to take place during 2017’s fourth quarter. Following shipment and setup, and combined with MGTI’s currently operational rigs, the company’s bitcoin mining operations are expected to deliver approximately $1.4 million in monthly revenue, assuming present pricing and difficulty rates. EBITDA from MGTI’s bitcoin mining operations is projected to be $1.0 million per month, factoring in direct operating costs and prior to amortization of notes payable.
Bitcoin Services, Inc. (BTSC) is another company engaged in mining bitcoin, additionally developing and selling blockchain software. During the first quarter of 2017, BTSC began mining its own cryptocurrency, known as Dash. The company also recently created a new subsidiary, CryptoCapital Corp., which is a cryptocurrency holding firm focused on acting as a catalyst for widespread cryptocurrency adoption and innovation. An intention behind the creation of CryptoCapital Corp. was the development of a cryptocurrency wallet that would let users securely store multiple digital currencies all in one wallet.
Another standout cryptocurrency player is Bitcoin Investment Trust (GBTC), which shines as the very first publicly quoted bitcoin investment vehicle. GBTC enables investors to invest in digital currency without actually buying bitcoin. A U.S.-based, open-ended grantor trust sponsored by Grayscale Investments, Bitcoin Investment Trust is invested exclusively in bitcoin, and its shares are the first publicly quoted securities to be solely invested in and derive value from the price of bitcoin. Through Bitcoin Investment Trust, investors can gain exposure to bitcoin’s price movement via a traditional investment vehicle without the challenges associated with buying, storing and safeguarding bitcoin. Bitcoin Investment Trust was named one of OTC Market Group’s “OTCQX Best 50” for 2017.
Due to their independence from banks and governments, cryptocurrency systems have clear application in high-risk sectors, like America’s burgeoning cannabis market. In the United States, while use of medical and recreational cannabis is being legalized in various states, continued restrictions at the federal level have made marijuana businesses largely “unbankable.” Without traditional banking services available to them, most cannabis businesses are forced to conduct cash-only transactions. While its core focus is executing an acquisition-based growth strategy to increase its market potential and position in cannabis, SinglePoint, Inc. (SING) is an early mover in leveraging bitcoin as a remedy for broader banking challenges.
SinglePoint’s new bitcoin exchange, which is planned to debut in beta form in November, will enable cannabis vendors to process debit and credit card transactions without the cooperation of banks or the FDIC. SinglePoint’s KYC-AML-compliant, proprietary solution will let marijuana consumers obtain bitcoin right at the point of sale and make instant bitcoin-powered purchases using their cards. Buyers can sign up before visiting a cannabis merchant or sign up at the point of sale.
It is indeed an exciting time for investment in cryptocurrencies and in services related to them, and experts predict longevity for these alternate currency systems. For those seeking promising cryptocurrency-related play, the named companies offer prime opportunities.
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