5 Companies Riding the Blockchain Wave

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5 Companies Riding the Blockchain Wave

FN Media Group Presents SafeHaven.com News Commentary

PR Newswire

LONDON, June 7, 2018 /PRNewswire/ --

The future belongs to blockchain-make no mistake about it. Blockchain is the backbone of the crypto-economy, where new millionaires seem to be minted left and right and currencies rise and fall by thousands of percentage points. Mentioned in today's commentary includes: Overstock.com, Inc. OSTK, Nvidia Corp NVDA, MoneyGram International Inc MGI, PayPal Holdings, Inc. PYPL, BCE Inc. BCE.

But blockchain is so much more-it's technology that can potentially upend every industry on the planet. It's already finding applications in a variety of sectors-from real estate to finance, gaming to healthcare. Not even politics will escape. It's real. We are moving toward a cashless society.

But with opportunities this big, the problem becomes risk management: how to win from the turn towards blockchain without losing your shirt. There are companies out there with a real blockchain strategy; unlike those firms that just change their name to enjoy a stock bump. These folks have a clear vision of how they want blockchain to change the way they do business…which will make them winners in the long run.

Here are 5 stocks that could make it easy for investors to test the stormy blockchain sea:

#1 Overstock OSTK

Overstock has been a frontrunner in adapting its business to new world of blockchain. Last year, its stock enjoyed a spectacular rise of nearly 400%. While the price has dipped from its high of January 2018, Overstock seems to have doubled down on the strategy that brought it success: blockchain.

In May 2018, the online retailer announced that it was splitting its retail business off so it could focus entirely on blockchain initiatives. Potential buyers are lining up to take over Overstock's retail arm, which has performed well in the last few years.

Meanwhile, Overstock's CEO Patrick Byrne is shifting his attention to a new endeavor: creating a blockchain-based "trust economy" and a stock exchange powered by the blockchain.

Overstock's blockchain projects are powered by its fintech subsidiary tZero. While the company has been the subject of an investigation by the SEC regarding its ICO, it has big plans for the future: security token trading software, first tested in 2015, which could regulate the blockchain-based securities exchange Byrne hopes to construct.

Right now, Overstock's stock is on the low end. But that could change after it sells off its retail arm and commits to blockchain full time. Investors should keep an eye on this stock before it begins to climb once more.

#2 Global Blockchain Technologies (BLOC; BLKCF)

How about this for a small, $64-million market cap company that could be sitting on an ethereal goldmine? BLOC is a publicly traded company with a blockchain "hedge fund" -type line of business and a blockchain "incubator" line of business and you can get in on it through your online brokerage account.

The company is led by experienced pros and veterans of the cryptocurrency marketplace. At the head is Steven Nerayoff, a pioneer in blockchain and one expert who assisted in the launch of Ethereum, a cryptocurrency which has gained more than 185,000% since its launch. Nerayoff was also an advisor to the Lisk Cryptocurrency project, now worth $919 million.

Make no mistake: BLOC is worlds away from some "Millennial Millionaire" looking to get-rich-quick from mining Bitcoin. These are blockchain professionals, committed to delivering quality returns to investors…just like any other public company. According to President Shidan Gouran, "When you invest in us, you're investing in a company run by people who have been in blockchain from the beginning."

The company recently put out very interesting news about a partnership with Hewlett Packard, where they will attempt to transform the data storage market. The plan is to allow users to profit from excess digital storage space, expanding on the success of companies such as AirBnb and Uber in utilizing the sharing economy.

BLOC leverages its staff of experts in order to find smart strategies for investing in blockchain. Last year it became a lead investor in KodakCoin, the first corporate-branded cryptocurrency. BLOC teamed up with tZero, Overstock.com's fintech subsidiary, to put together the digital infrastructure needed to power KodakCoin.

Corporate cryptos are the way of the future, and BLOC is investing heavily in supporting brands that could use cryptos to leverage brand loyalty and monetize customer interaction. BLOC has just signed an agreement with Playboy Enterprises Inc. to develop a digital wallet for the Playboy.tv web portal.

Video games have used cryptocurrencies for years, as a way of simulating in-game transactions. The in-game economy of World of Warcraft, for instance, is reportedly bigger than Venezuela's. Now, BLOC plans to bring the power of the blockchain to a new "game galaxy," where cryptos are used exclusively and gamers are encouraged to use real money to stimulate the in-game economy.

The company's major blockchain asset is its new Laser platform, a tool that connects different blockchain networks into a single union-"blockchain without borders." This little market cap company could be involved with assets and technology worth billions.

Its team is also, "incubating" new cryptos before they can bloom. Global Blockchain has put together a core team that aims to be "incubating" 6-12 new digital currencies every year. This means that Global Blockchain will be providing the funding for these new currencies in return for an equity stake.

BLOC's strategy is multi-pronged. Buying this cheap stock gives shareholders exposure to a vast array of opportunities in the blockchain and crypto worlds. It's a way to earn from the blockchain revolution… without the usual risk associated with investing in any one particular cryptocurrency.

#3 Nvidia NVDA

Didn't think Nvidia was a blockchain company? Well, it's not and it is. When you pick it apart, it's one of the backbones: NVDA makes semiconductors to power cryptocurrency mining. It was also one of the best stocks of 2017 and it shows no signs of slowing down.

Nvidia saw a major bump in quarterly revenues, and it expects its data center revenue to increase by 17000% by 2023. And it's not stopping there. Nvidia is investing heavily in deep learning technology-AI that allows computers to learn processes simply by observing human technicians. This company is involved heavily in everything from autonomous vehicles, graphic processing, central processing units, computer gaming and blockchain. Now, analysts predict it could be the major player in AI. It's cornering tech on every level, and we think it's only at the beginning of its run.

#4 International Business Machines

IBM stock has struggled in 2018, but it could be set for a comeback, thanks to new acquisitions and a major push for new blockchain investment. The company has heaped praise on blockchain as the next big thing in tech, and it seems prepared to put its money where its mouth is.

The tech pioneer is focusing on big deals with major firms, as a way of bringing blockchain to the mainstream. It's already penned agreements with WalMart and Maersk. It's got a partnership with Chinese e-commerce player JD.com and it is even testing blockchain management of food supply in Kenya. Still, investors are wary to buy up this stock, since it's been struggling to make an impression.

But that makes it an even better proposition for us. The stock is at a historic low, which makes it comparatively cheap. By the time IBM's blockchain investments pay off, the firm may well see a healthy return to form, delivering big rewards to those who buy in now.

#5 Blockchain ETFs 

Another safer way to get in on blockchain is through three ETFS that seek out real ties to blockchain. What we like about this is the flexibility because they can couple small blockchain companies with something like IBM, which Wall Street would relegate only to IT, not blockchain. This gives us a wide diversity for getting in on blockchain, and something that might not have startling returns, but is safer for the cautious investor.

  • Innovation Shares NextGen Protocol ETF picks stocks using a quant model, tracking companies and putting them in a proprietary index (Blockchain Innovators Index). Most companies are U.S. based, but Chinese companies feature as well (11 percent). They hold Visa and Mastercard in the Top 10 because they've started blockchain payments. It just started trading on the NYSE.
  • Reality Shares Nasdaq NextGen Economy (BLCN) ETF owns companies like HIVE Blockchain Technologies, Japanese SBI investment bank, IBM and Overstock.
  • Amplify launched in the third week of January, and its top holdings are Citigroup, Overstock, IBM, Square and Nvidia.

Other companies to watch closely as the blockchain sector develops: 

MoneyGram International Inc MGI: MGI's stock jumped 10 percent on the day it announced a partnership with Bitcoin rival, Ripple. Online money transfer companies have gotten very popular recently with MoneyGram, Transferwise and Xoom leading the charge. The stock plunged after the company released its meagre Q1 earnings, and now looks oversold. From a technical point of view, MoneyGram seems fairly priced at this point, but a comeback won't be likely to happen if the company fails to post good Q2 results.

PayPal Holdings, Inc. PYPL: With a market cap of around $72 billion, PayPal is a giant in the mobile transactions segment, and its Venmo app processed a record $6.8 billion in the first quarter of this year. That's double what it processed in the same period last year. Right now, it's not clear whether Venmo is a huge revenue earner for PayPal, but it could be in the future.
The company has some 184 million active users and 14.5 million merchants. In 2015 it generated $9.2 billion in revenue and its stock has been soaring for years.

BCE Inc. BCE is a Canadian telco giant. Founded in 1980, the company, formally The Bell Telephone Company of Canada is composed of three primary subsidiaries. Bell Wireless, Bell Wireline and Bell Media, however throughout its push into the position of one of Canada's top telco groups, it has bought and sold a number of different firms.

BCE Inc has resisted takeover attempts and shown significant resilience throughout the years. The company has been so successful, that it is now a household name.


By. Meredith Taylor

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