Global Blockchain Technologies Corp (OTCMKTS:BLKCF) has been correcting so far in 2016. But the company just put out a rather lengthy press release covering its new move to spin off its mining operations in a new stock that will trade under the ticker “FORK”. Traders and investors with exposure to BLOC or BLKCF as of the close on Tuesday would be a part of the deal.
In its latest release, the company provided a further detailed explanation of what shareholders of record at the close of market on March 1, 2018 will receive, as well as an overview of the parts that form the sum of Global Blockchain, according to the company, “due to a high level of investor inquiry.”
Global Blockchain Technologies Corp (OTCMKTS:BLKCF) frames itself as an investment company providing investors access to a basket of holdings within the blockchain space, managed by a team of industry pioneers and early adopters of all major cryptocurrencies.
GBT is focused on streamlining the current arduous, lengthy and complicated process that interested investors need to undergo in order to gain exposure to the cryptocurrency space with a view to becoming the first vertically integrated originator and manager of top-tier blockchains and digital currencies. GBT is listed on the TSX Venture Exchange and its common shares trade under the ticker symbol \”BLOC\”.
According to company materials, “Global Blockchain Technologies Corp. is an investment company providing investors access to a basket of holdings within the blockchain space, managed by a team of industry pioneers and early adopters of all major cryptocurrencies. GBT is focused on streamlining the current arduous, lengthy and complicated process that interested investors need to undergo in order to gain exposure to the cryptocurrency space with a view to becoming the first vertically integrated originator and manager of top-tier blockchains and digital currencies. GBT is listed on the TSX Venture Exchange and its common shares trade under the ticker symbol “BLOC”. Other information relating to GBT is available on SEDAR at www.sedar.com as well as on the Company’s website at www.globalblockchain.io”
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The president of the company gave a wonderful explanation of the rationale here, and we wanted to present it in complete form:
“Global Blockchain reviewed its activities and identified that it was not achieving, in its view, sufficient “pure play” market value for its different and unique businesses, each housed within BLOC. Most notably and distinctly, these verticals are: 1) The investment in or incubation and creation of new blockchains, ICOs and tokens specifically in partnership with leading brands that have large captive user bases, and/or in collaboration with industry participants whose principal areas of business truly merit and benefit from decentralization and the blockchain; and 2) The mining of cryptocurrencies in order to provide investors with access to existing known and blue chip currencies such as Bitcoin and Ethereum through the deployment of hardware and associated infrastructure that can “mine” these coins by performing the function of verifying and validating transactions as trustworthy through the processing of difficult cryptographic problems that require tremendous amounts of computational power to solve. This achieves exposure at a fraction of the cost of ownership and speculative risk associated with retail purchase at current price levels.
Looking at the value of our Company versus the comparable listed universe, who for instance only act as miners, it became obvious that comparable companies on Canadian Exchanges on every metric including the below were being rewarded with much greater valuations: 1) MW of power available for operations in favourable jurisdictions; and 2) Total computing power for mining. The disparity in valuation, in the view of management, meant that either the value of our investment and incubation vertical was being ignored, or the value of our mining vertical was being ignored.”
Now commanding a market cap of $16.3M, BLKCF has a significant war chest ($6.3M) of cash on the books, which stands against virtually no total current liabilities. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 899.9%. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $BLKCF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $BLKCF, either long or short, and we have not been compensated for this article.