Blockchain Stocks Weekly Update – January 4: American Retailer Overstock Plans Pay State Tax with Bitcoin

VitalHub Corp (VHI) January 2019

The first week of 2019 was dominated by a lot of public sector initiatives where several Governments introduced legislation to curb the illicit use of cryptocurrencies for money laundering. Meanwhile, the bitcoin continued to trade below the $4,000 marks and concerned investors about the viability of a bullish rebound.

On January 3, the Irish government approved a bill in the national parliament that will align the country to the European Union’s Fifth Anti-Money Laundering (AML) Directive. “The main purpose of the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2019 is to give effect to the fifth EU money laundering directive and strengthen existing legislation,” reported the Irish Times.

On the other end of the spectrum, the Chilean anti-monopoly court has once again supported local cryptocurrency exchanges by granting protection by forcing banks to keep their accounts open. The Diario Financiero, a financial news outlet, reported that as a result of the court ruling, the Banco del Estado and Itau Corpbanca, the two banks seeking to close crypto-related accounts, will be barred from closing the cryptocurrency exchange accounts.

The Chilean government is a big supporter of cryptocurrencies and the Chilean General Treasury of the Republic (TGR) has already announced to launch a blockchain platform to process payments earlier in December 2018.

In the private sector, we learned that American retailer has decided to pay part of their taxes in Ohio using Bitcoin. said in a press release that it will use Ohio’s new cryptocurrency taxpayer platform,

Based on our research, we found that the following blockchain stocks demonstrated notable price movements based on shifts in their company fundamentals.

VitalHub Corp

VitalHub Corp (VHI) is a blockchain company that offers the Electronic Health Record (EHR), a web-based assessment, mobile and blockchain solution. Toronto, Canada based VitalHub Corp supports more than 200 clients across North America with their range of decentralized database solutions.

On January 2, 2019, VitalHub Corp announced the sale of B Care to The Salvation Army Toronto Grace Health Centre. “The revenue associated with the three phases of this project is anticipated to exceed $1M with approximately 60% of that total allocated to software licensing,” said VitalHub Corp in the press release.

VitalHub Corp (VHI)  January 2019

Soon after the announcement of the sale of B Care to The Salvation Army Toronto Grace Health Centre, the stock of VitalHub Corp turned bullish. As the new rapport between these two entities will generate substantial revenue for VitalHub Corp, we believe there is a strong correlation between the latest bullish momentum and the news.

Currently, VitalHub Corp’s stock is trading at $0.17 per share and there is a strong resistance around the $0.18 level. If we see the stock price breaking above the $0.18 per share level, it will confirm the start of an uptrend that will likely push the price towards the next resistance around $0.205 per share. Hence, conservative investors should wait till the price breaks above the $0.18 per share level and only then consider increasing their exposure to the company.

Marathon Patent Group Inc

Marathon Patent Group Inc (MARA) is a digital asset technology company that is primarily involved in mining cryptocurrencies. However, the company is also focused on the blockchain ecosystem and the generation of various other digital assets.

Earlier in December 2018, Marathon Patent Group Inc held an annual meeting of shareholders and approved the amendment of the Articles of Incorporation to implement a reverse stock split of its capital stock. However, that did not stop its share price from going down and the downturn continued.

Marathon Patent Group Inc (MARA) January 2019

Over the last month, Marathon Patent Group Inc’s stock fell to as low as $0.36 per share, but it found strong support on this level. During the Christmas holidays, the support held the price from going further down.

While the amendment to the Company’s 2018 Equity Incentive Plan to eliminate the performance-based compensation will help boost the company’s bottom line, we believe it is not enough to stop the current downturn. This week, its stock price once again fell 10% and if the support around $0.36 per share breaks, it will likely to trade with a bearish note.

Bottom Line

The broad initiatives by governments to prevent anti-money laundering may come off as an attempt to halt cryptocurrency transactions. However, the fact is, with regulation against money laundering, it will be much easier to define and operate cryptocurrency exchanges within the purview of the law of the land.

The plan of American retailer to utilize Ohio’s cryptocurrency taxpayer platform, is a prime example of how lawmakers can integrate blockchain and crypto assets into the legislative framework instead of considering it as a threat to fiat based monetary systems.


Blockchain Stocks has not been paid to mention any stock /company within this article nor do we own any stock in any company mentioned in this article. More information about our full disclosure can be found here – Full Disclaimer.