Big Moves Combine Esports and Blockchain

Vertical integration is a staple business practice in many industries except one: blockchain. When the industry was new, it was hard to imagine what vertical integration would look like. Investors tried to think of new uses for blockchain technology, but primarily as a service.

Now, expansion is the name of the blockchain game. The more industries a company can be a part of and find uses for its technology in, the better the long-term investment and growth opportunity. The latest venture from Graph Blockchain Inc.(CSE:GBLC, OTC:REGRF, Forum) is part of this camp, as the Company enters a hot market at the right time.

Graph Blockchain announced Friday that it signed a binding LOI to acquire Cyberanking Ltd., a Learning Management System company in the esports industry. Cyberanking’s business model focuses on the developing competitive vertical of the esports industry by creating custom training and wellness content for users looking to hone or improve their skills.

The CAD $1.5 million purchase should see Cyberanking implement Graph Blockchain’s existing technology in blockchain business intelligence and data management while providing a new revenue stream. It is also a creative opportunity to diversify risk and opens up the possibilities for further applications for the Company’s blockchain solutions.


(Mock-up of Cyberanking training interface. Image via Cyberanking)

As part of the news release, Jeffrey Stevens, CEO of Graph Blockchain, commented on how the acquisition offers a good synergy for the two companies:

The move confirms Graph Blockchain’s serious entry into the esports market, a goal that management had identified as an excellent opportunity for the blockchain business. Stockhouse previously looked in-depth at the how the Company’s solutions could be used in multiple fields, though the esports approach is a more recent one.

Finding the right angle for investing in the esports industry is tricky despite its lucrative growth and spending numbers. Only few players win the biggest tournaments and their multi-million dollar prize pools, so Cyberanking instead targets the growing segment of newcomers and aspirational players vying to compete. In 2019 that accounts for around 50 million people, as the total esports audience is expected to number 450 million by the end of the year.

Earlier in May, a similar play to enter the market fell through as Graph Blockchain deemed it wasn’t a satisfactory opportunity, so the Company sought out veteran assistance from consulting firm Esports Capital Corp. Not only did the firm help identify Cyberanking Ltd. as a great entry point, Esports Capital Corp.’s Co-Founder and President Adam Morrison is being appointed as Graph Blockchain’s Chief Operating Officer.

Too often, companies enter a new attractive sector headfirst and figure out success along the way. But with Morrison on the executive, Graph Blockchain will have as close to a veteran of esports as possible, considering how young the industry is. He co-founded and served as CEO of the pro esports franchise Team Reciprocity that competes in games like Call of Duty, Starcraft 2, and Halo, as well as serving as CTO for gaming and digital media company Millennial Esports Corp. (TSX-V:GAME).

That makes the esports entry seem all the more calculated and promising for the Company, and working with Esports Capital Corp. puts Graph Blockchain in elite company. The principal’s previous clients include some of the biggest names in the industry, including Electronic Arts (NASDAQ:EA), Twitch, and Amazon (NASDAQ:AMZN).

In its latest move, the Company manages to both enter a hot market that is attractive to investors and acquire experienced talent to navigate that entry successfully. When investors are wondering how it’s possible to vertically integrate and grow in the blockchain business, they’ll be able to look at Graph Blockchain for an example.




FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.