Abaxx Technologies Inc N.ABXX

Alternate Symbol(s): ABXXF

Technology Software - Application

Abaxx Technologies Inc. is a Canada-based financial software and market infrastructure company. The Company is developing and deploying software tools that make communication, trade, and transactions secure. The Company has launched Abaxx Commodity Futures Exchange and Clearinghouse, regulated by the Monetary Authority of Singapore, to support trading and risk management with physically settled benchmark futures contracts in the commodity markets at the center of the energy transition to a low-carbon emissions economy. Its products include Abaxx Verifier, Abaxx Drive, Abaxx Messenger, Abaxx Exchange, Abaxx Clearing and Abaxx Infrastructure. The Company is also focused on building Smarter Markets, which allow tools, benchmarks and technology to drive market-based solutions to challenges, including climate change and the energy transition. The Abaxx Verifier is a secure password, identity and verification application.

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Abaxx Technologies Inc > ABAXX valuation relative to LME and CME group

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Comment by jduadeon Dec 02, 2020 8:13pm

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Post# 32023450

RE:RE:RE:RE:ABAXX valuation relative to LME and CME group

If Bakkt (founded in 2018 like Abaxx) can have a $1 Billion plus USD valuation for running a small bitcoin exchange, then I don't see why Abaxx couldn't also achieve a $1 Billion USD valuation. That would equate to a $1.333 Billion CAD valuation using a $1 USD to $0.75 CAD exchange rate, or a roughly a $19.50 share price for Abaxx!

Below is a brief snippet on Bakkt, and their main business. I personally think that Abaxx has a much more compelling story than Bakkt given their plans to revolutionize commodity markets with distributed ledger technology (and yes they do have patents, see page 157-159 of the circular). While I can't fault a lot of long term shareholders for wanting to cash out on a nice gain, I personally want to see where the Abaxx team can take this in one to two years time. This looks like it could be a truly special opportunity with multiple near term catalysts that can really catapault the stock forward (see page 161 of the circular for the timeline on the SaaS business, and page 168 for the timeline on the Exchange business).

Spotlight on Bakkt
https://dailyfintech.com/2020/10/06/spotlight-on-the-bakkt-app/

Another one that I want to highlight is much younger and upcoming. Bakkt was founded in 2018 and is part of the Intercontinental Exchange (ICE). It has raised $482million already (Series B was $300million in March 2020) and has a valuation just over $1billion.
Bakkt is in the exchange business with a focus on cryptocurrencies and digital assets. Its institutional offering includes custody and derivatives (futures for now and options) on cryptocurrencies. The current menu includes Bitcoin futures settled in cash and physically.
Its consumer offering is the Bakkt App that includes the capability to buy and sell cryptocurrencies and make payments, but also wallet capabilities for gift cards and loyalty points. And this is where the differentiation starts compared to other crypto wallets – exchange apps.
The institutional part of Bakkt is growing but has still a very small share (less than 2%) of the overall Crypto futures activity which remains mainly OTC