Although Bitcoin has lost half of its value since the beginning of the year, it had an extraordinary bullish season in 2017, and as a result, prices in the crypto money market rose to unprecedented levels.
This rally also served to stocks of companies focusing on CPU and blockchain technologies as well as crypto currencies.
NVIDIA and AMD, the CPU market leaders, and IBM, the leader of the most active blockchain efforts in the world, are among the safest options for investors to evaluate the rise in these two areas. However, apart from these established companies, there are risky and even extremely dangerous stocks advancing through co bitcoin ”.
Here are two stocks that meet this definition: Riot Blockchain (NASDAQ: RIOT) and Xunlei Limited (NASDAQ: XNET).
Bioptix, an old and unsuccessful medical device manufacturer, renamed itself Riot Blockchain
The unsuccessful medical device manufacturer Bioptix renamed itself Riot Blockchain in October and suddenly focused on the blockchain and crypto currency market. Shortly thereafter, he invested in a small Canadian-based crypto currency exchange named Coinsquare.
In November, Riot acquired Kairos Global Technology, a two-week crypto mining company with assets worth $ 1.9 million (most mining equipment) for $ 12 million. This was a strange move, as Riot could buy the same equipment directly from the manufacturer Bitmain for about $ 2.1 million.
After Bioptix, the failed medical device manufacturer, completed its transformation into Riot Blockchain, the company’s shares rose by 300 percent in a short period of time and the market value approached $ 300 million. However, the company has not yet generated any revenue, while its net loss increased from $ 1.7 million to $ 5.3 million.
All of these developments show that Riot, which can make headlines in global crypto-money broadcasts, is only trying to benefit from the surge in bitcoin without a real long-term plan. Undoubtedly, before the transformation, Bioptix investors have benefited from this activity, but Riot is likely to burn investors who think their gains are sustainable in a possible uptrend season.
The general decline in the crypto money market since the end of 2017 also affected Riot. The company’s market value has dropped to $ 83 million, while its shares are currently trading at 6.36.
Cloud service Chinese Xunlei turned to the crypto money market
Unlike Riot, the Chinese technology company Xunlei actually stands out for its steady revenue growth. The company’s core platform, Xunlei Accelerator, speeds up Internet broadcasts for video streams, online games and other cloud-based content. It also generates revenue from internet advertising.
Xunlei’s revenue rose by 21 percent to $ 157 million in the last quarter. The increase was due to a 230 percent growth in the company’s revenue for the cloud segment, but the company was not profitable in the last nine quarters. As a result, investors did not notice Xunlei much during the year.
But in mid-October, Xunlei introduced a new mining project called Wankebi for crypto-currency. Many investors consider Xunlei’s use of the cloud platform in mining operations as a successful speculation on crypto currency. The enormous increase in the company’s shares during the same period occurred after the Wankebi project was introduced.
In late November, Xunlei announced that Wankebi was “a kind of digital entity ve and warned that Wankebi was not a speculation, but a symbol of evidence.
In other words, Xunlei only tests Wankebi for its Internet services and hopes other crypto coin miners will use the cloud platform. If this goes as planned by Xunlei, it can create a new revenue area for the company, but at the same time, if the crypto money market collapses, things can go wrong.
With a market value of $ 660 million, Xunlei’s shares are traded for $ 9.93.