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Bitcoin Breaks New Records Crossing the $8,000 Mark

BLKCF, MGTI, GBTC, RIOT, V.HIVE

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, November 20, 2017 /PRNewswire/ --

Bitcoin price surpassed $8,000 for the first time on Sunday. According to data from industry website Coindesk, the price of bitcoin hit an all-time high of about $8,100 during Sunday's its trading session. Bitcoin now has a market capitalization of 134 billion and is the world's largest cryptocurrency by market cap. Increasing institutional interest in cryptocurrency continues to boost the price of bitcoin. In October, the world's biggest exchange, CME Group Inc, announced the launch of bitcoin futures contracts. Last week, Square said it was testing the feature that allow a small number of customers to purchase and sell bitcoins through its Cash payments app. Global Blockchain Technologies Corp. (OTC: BLKCF), MGT Capital Investments, Inc. (OTC: MGTI), Bitcoin Investment Trust (OTC: GBTC), Riot Blockchain Inc (NASDAQ: RIOT), HIVE Blockchain Technologies Ltd. (OTC: PRELF)

According to Coindesk, Institutional clearing platform on Saturday initiated its first long-term bitcoin futures option, which is set to expire on December 28, 2018. The future option allow buyer to purchase bitcoin at a price of $10,000 at that date. LedgerX CEO Paul Chou said in an exclusive interview with CoinDesk: "There will be, I expect, a lot more trades down the line. This is the first one, but it at least gives you the first guess from different institutional traders as to what bitcoin's dynamics will look like from now until 2018."

Global Blockchain Technologies Corp. (OTC: BLKCF) also listed on the TSX Venture Exchange under the ticker symbol 'BLOC'. On November 16th the company announced breaking news that, "cryptocurrency miner Coinstream Mining Corp. ("Coinstream") has entered into an agreement with Distributed Mining Inc. ("DMI" or Distributed Mining) for an investment of common shares. The agreement will see Coinstream purchase 1,000,000 common shares, for $1,500,000, representing a post-money interest of 25% of DMI. Subject to closing of the transaction press released on November 11, 2017, GBT will acquire 49.9 per-cent interest in Coinstream.

This investment in DMI will entitle Coinstream to a board seat. The agreement also includes a participation provision to maintain its 25% interest, or greater in the future. DMI is a blockchain software company creating software that enables all devices the ability to participate in mining cryptocurrency. The software will be available to be downloaded through Distributed Mining, or via their partner sites. Connected devices will then be able to activate mining operations via their devices, (including but not limited to Mobile Phones, Gaming Consoles etc.)

Distributed Mining would allow anyone with a connected device to download and install a software packet giving them access to optimized cryptocurrency mining. The distributed mining platform will be able to optimize for variable mining requirements and its design is particularly well suited for gaming consoles, of which there are over 100 million currently connected units. Gaming consoles contain stronger processing power than found in typical laptop/desktop computers, making them the perfect environment to deploy the distributed mining platform as individuals are able to put their resting consoles to work, earning them valuable cryptocurrency tokens."

Shidan Gouran, President of GBT noted "Distributed Mining represents a promising possibility of a new level of accessibility to the cryptocurrency world. With over $10 billion dollars worth of digital tokens changing hands daily, the crypto mining world has been firmly in the domain of only those with powerful computing rigs designated specifically for cryptocurrency mining. 

Distributed Mining is an exciting opportunity because it opens up the mining world to the algebraically demonstrable power of numbers by enabling any individual with a connected device to participate in cryptocurrency mining, in partnership with DMI, leveraging immense non-specific use existing computing power and eliminating the tie to the requirement for huge and expensive sources of power required by traditional miners. We believe that this has the potential to significantly alter the mining landscape."

MGT Capital Investments, Inc. (OTCQB: MGTI) earlier this month filed its Form 10-Q quarterly report with the Securities and Exchange Commission for the period ended September 30, 2017. Revenues from Bitcoin mining were $515,000, up 33% sequentially over the second quarter of this year. "As with any periodic filing, quarter-end numbers are already stale," stated Robert Ladd, President and CEO of MGT. "Stockholders need to know where we stand today, and I am very happy to share that information. October revenues came in at approximately $400,000 with 865 mining rigs in operation. While power availability (in large part caused by unprecedented demand from the emergent Ethereum market) has delayed our deployment, we have sourced sufficient power to accommodate the 170 rigs not yet deployed, as well as the 3,650 rigs to be delivered over the next several weeks," continued Mr. Ladd. 

Bitcoin Investment Trust (OTCQX: GBTC) recently announced the launch of its third investment vehicle, the Zcash Investment Trust (the "Trust"). A trusted authority on digital currency investing, Grayscale Investments, LLC has assets under management of $1.3 billion. The Trust's shares are the first securities solely invested in Zcash ("ZEC"), the digital asset that powers the Zcash Network. The investment objective of the Trust is for the shares to reflect the value of the ZEC held by the Trust, determined by reference to the TradeBlock ZEC Composite Reference Rate at 4:00 p.m. New York time, less the Trust's expenses and other liabilities. The Trust is a passive investment vehicle that is not actively managed. The Sponsor believes that, for many investors, the shares will represent a cost-effective and convenient investment relative to a direct investment in ZEC.

Riot Blockchain Inc (NASDAQ: RIOT) reported a strategic investment in Verady, LLC ("Verady"). Verady combines blockchain technology and industry thought leadership to bring accounting standards and audit services to the cryptocurrency market. Verady provides accounting, audit, and verification for blockchain based assets such as cryptocurrencies. The Company's investment in Verady will be used to further advance its technology and increase the size of its team. "This investment continues our commitment to building blockchain technologies," said John O'Rourke, Chairman and Chief Executive Officer of Riot Blockchain. "With recent highs in Bitcoin and other cryptocurrency valuations, there is significant market potential for blockchain and digital asset technologies. We will continue to increase our involvement and support of the blockchain ecosystem, as we ramp up our Bitcoin mining operations."

HIVE Blockchain Technologies Ltd. (OTC: PRELF) announce that it has closed its previously announced bought deal private placement, including the exercise in full of the Underwriters option. A total of 12,322,250 units were sold at a price of C$2.80 per Unit for aggregate gross proceeds of $34,502,300. The Offering was underwritten by a syndicate of underwriters led by GMP Securities L.P. and included Haywood Securities Inc., Eventus Capital Corp., and PI Financial Corp. Each Unit consists of one common share and one Share purchase warrant, with each Warrant entitling the holder to purchase one Share at a price of $3.90 until November 14, 2019. The Shares and the Warrants issued under the Offering are subject to a hold period expiring March 15, 2018.

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