Blockchain Stocks Weekly Update – November 23: Bearish Bitcoin Prompts Miners to Sell Their Hardware in China

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BLOCKStrain Technology Corp DNAX November 2018

Most blockchain stocks, especially the mining stocks, turned bearish this week as the price of BTC/USD continued to plummet, so far, reaching as low as $4,210 on Friday. The massive selloff prompted some low and mid-sized Chinese bitcoin miners to sell their older mining equipment for pennies on the dollar.

However, stakeholders in the industry think the price fluctuation will be temporary and bitcoin will soon resume the uptrend. BitPay’s COO Sonny Singh told Bloomberg that it could reach $20,000 by the end of next year. Moreover, the Blockchain Intelligence Group (BIG) CEO Lance Morginn still believes the fundamentals of cryptocurrencies are “still intact” and we will likely see a rebound in sooner rather than later.

While it didn’t receive much media coverage, a blockchain startup called IDA published a Whitepaper this week, demonstrating how the tokenization of assets could become “the new driver” of growth in the global economy. Also, its partnership with Sigfox enables IDA to offer a unique value proposition and more powerful than other asset digitization platforms.

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

DMG Blockchain Solutions Inc

DMG Blockchain Solutions Inc (DMGGF) is involved in cryptocurrency mining business and they offer mining facilities for third parties. Over the last few months, since May 2018, DMG Blockchain Solutions Inc’s stock remained rangebound and traded within the narrow range between $0.1375 and $0.3250 per shares. With the recent bearishness of bitcoin and other altcoins, it is analysts are not surprised to see the stock is trading at the bottom of the price range.

However, Business Television (B-TV) just reported on November 23, 2018, that DMG Blockchain Solutions Inc is gradually diversifying its mining business and using blockchain technology to ensure that consumers know their cannabis products are safe as they go from the grower to the retailer.

DMG Blockchain Solutions Inc DMGGF November 2018

The report from one of the most prominent business channels not only provides investors with the highlights about how DMG Blockchain Solutions Inc is using decentralized database solutions to provide a solution to an emerging industry, but it also provides us with insights about how this could diversify their revenue channels in the coming quarters.

As the support near $0.1375 per share held the price from going down several times in the last few months, we believe buying near this level offers investors an excellent opportunity to increase their exposure to DMG Blockchain Solutions Inc.

BLOCKStrain Technology Corp

BLOCKStrain Technology Corp (DNAX) is involved in providing an integrated blockchain platform that registers and tracks intellectual property for the cannabis industry. Over the last few weeks, its stock traded along with downtrend line, but in the last few days, it gradually broke above the downtrend line.

On November 21, 2018, the CFN Media Group, the leading agency and financial media network dedicated to the North American cannabis industry, talked to the Chief Technology Officer of BLOCKStrain Technology Corp, Tommy Stephenson, and discussed how the company can transform the supply chain of the industry.

BLOCKStrain Technology Corp DNAX November 2018

Many cannabis cultivators are struggling and still using simple Microsoft Excel sheets or other third-party software to comply with seed-to-sale regulations. The problem is, the industry is projected to reach nearly $100 billion in annual revenue by 2026 and using old-school software is not going to increase the efficiency of the industry’s supply chain.

While BLOCKStrain Technology Corp has been developing a catered solution for the legalized cannabis industry, the latest exposure in CFN Media Group will certainly help the company to convey a message to the market and investors that their blockchain based solution can genuinely help the growing cannabis industry. Hence, we believe this latest media exposure will likely have a bullish impact on its stock price.

Since BLOCKStrain Technology Corp’s stock price has already broken above the downtrend line, we believe increasing exposure at current market price offers a great opportunity to investors as the next major resistance is at around $0.28 per share.

Bottom Line

Baron Rothschild once famously said that “the time to buy is when there’s blood in the streets.” And, given the current bearish momentum in the bitcoin price, it might be the best time to invest in the cryptocurrencies and relevant blockchain stocks.

Hence, while BLOCKStrain Technology Corp is solely focused on the cannabis industry, the other company, DMG Blockchain Solutions Inc, we discussed today have great upside potential in the medium-term as it is also heavily involved in mining bitcoin and other cryptocurrencies.

Disclaimer

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.