On October 31, it was the 10-year anniversary of releasing the bitcoin white paper by the anonymous author Satoshi Nakamoto. There is no doubt that the impact of his creation had a huge impact on the global economy over the last decade, but the price of bitcoin continued to range within a narrow range this week, trading around the $6450 level.
However, the recent bearishness didn’t stop Grayscale Investments Inc., A crypto asset management firm, from reporting of $330 million total Investment into its products in Q3 2018, up 33% compared to the same quarter last year.
The Department of Federal Revenue of Brazil (RFB) said on October 30 that all crypto exchanges operating in Brazil now have to file reports on a monthly basis. The draft published by the RFB is perhaps the first step towards taxing cryptocurrency exchanges.
Asia, Hong Kong’s Securities and Exchange Commission (SFC) released a guidance on regulatory standards, saying “all licensed portfolio managers intending to invest in virtual assets should observe essentially the same regulatory requirements.” It indicated that crypto exchanges might be under SFC’s supervision more directly very soon.
Meanwhile, the Chinese retail company JD.com said that it is going to further its agenda by opening a joint research lab for blockchain technologies with the Ying Wu College of Computing at the New Jersey Institute of Technology (NJIT).
Based on our research, we found that the following blockchain stocks demonstrated notable price movements based on shifts in their company fundamentals.
Hut 8 Mining Corp
Hut 8 Mining Corp (HUT) recently added 16 new Black Boxes to their mining operation, making them the largest publicly traded crypto mining firm in the world. While they took a line of credit worth $16 million to finance these new machines from the merchant bank Galaxy Digital, they also agreed to a vendor-take-back condition from Bitcoin blockchain infrastructure provider Bitfury.
Under the agreement, BitFury accepted 40% of the selling price at $3.75 USD per share of Hut 8. As we reported last week, BitFury is planning to become Europe’s first major blockchain IPO and doing so will probably make a huge impact on the stock price of Hut 8 Mining Corp as it will raise their overall public profile.
Hut 8 Mining Corp’s stock remained bearish over the last few months, mostly due to the BTC/USD downtrend. However, on Wednesday, it formed a large bullish pin bar after the price got rejected near the support around $2.50 per share.
While Hut 8 Mining Corp’s stock price remained, range-bound over the last two days and it has not broken above the high of the pin bar, it still indicates a bullish momentum in the market. However, there has been a strong resistance just above the high of the Wednesday’s pin bar around $2.95 per share.
With the prospect of BitFury going public and its vendor-take-back agreement with Hut 8 Mining Corp, there should be some positive correlation. If we see the stock price of Hut 8 Mining Corp break above the bullish pin bar and closing above the resistance near $2.95 per share, it could trigger the start of a bullish movement.
MGT Capital (MGTI) said in a press release on October 25, 2018, that they have successfully entered into a hosting agreement for a facility in Colorado Springs to host its bitcoin mining operation there. Currently, MGT Capital has around 6,300 S9 Antminer Bitcoin Miners in northern Sweden.
MGT Capital’s stock remained on a strong downtrend and it formed a well-respected downtrend line over the last several months. At the end of September, it fell below the support around $0.19 per share. So far, it has failed to penetrate above this level.
However, the news about shifting 6,300 of its S9 Antminer miners to Colorado Springs will help build some bullish momentum for the stock in the short to medium term as it will provide a cost-effective solution and can help facilitate MGT Capital’s growth plans for 2019.
We also observed the Stochastics indicator crossing up, signaling a potential change in the direction of the stock price of MGT Capital. Nonetheless, conservative investors should wait for the price to break above both the downtrend line and the resistance near $0.19 per share before considering increasing their exposure.
Over the last ten years, bitcoin has revolutionized the way we think about the concept of money and exchange of value on a global scale. However, it is the underlying blockchain technology that had the most powerful impact on a range of industries.
Sure, the price of bitcoin remained unpredictable sometimes, but the news about Grayscale Investments attracting over $330 million in investments gives us hope that the market is solely not focused on the bitcoin or other altcoin price and appreciates the value of the underlying blockchain technology.
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