Many see blockchain as the technology of the future and that has created an amazing buzz around the sector. Similar to what happened in the 1990s, it is sufficient for a company to add blockchain to its name to see its stock spike up and interest rise. However, before investing, you should really look what is actually behind a stock and its exuberant name or behind the usage of a trendy word like “blockchain.”
I discuss three stocks that are all related to blockchain but have different ways of approaching it. Hive Blockchain Technologies (OTCPK:PRELF) is a coin miner with facilities in Island and Sweden where it uses cheap energy to mine coins, mostly Ethereum. Interesting company with an even more interesting ownership structure and related party transactions.
Gain Capital Holdings (NYSE:GCAP) is a forex platform that recently announced the possibility of Bitcoin trading. The announcement pushed the stock price up more than 30%.
The third stock is Xinyuan Real Estate (NYSE:XIN), and it has a blockchain option that is perhaps the most serious of these three.
Enjoy the video.
Disclosure: I am/we are long XIN.
Editor’s Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.
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