Veltyco said it has “commenced discussions with
blockchain and cryptocurrency providers” about potential
Stock jumps 20% at the open in reaction to the
news, before settling back to a 14% gain.
A growing number of small, listed businesses are
pivoting to cryptocurrencies and seeing a bump in their stock,
as investors clamour to get a slice of rocketing bitcoin
LONDON — Gaming company Veltyco saw its stock price leap
higher on Thursday after
telling investors it has “commenced discussions with blockchain
and cryptocurrency providers” about potential partnerships.
Veltyco, which provides online marketing services to gaming
companies, said it hopes to create a cryptocurrency wallet that
it can market to its customers.
The company said: “Veltyco is planning to offer its customers the
use of a crypto wallet that can be used across the platforms of
all of Veltyco’s partners, allowing customers access to each
platform without having to make separate deposits on the
individuals platforms as well as enabling Veltyco to cross-sell
the different platforms to its customer base.”
The announcement sent Veltyco’s shares, which are listed on
London’s AIM growth market, jumping 20% at the open. The stock
has pulled back a little since then but, as of 9.05 a.m. GMT
(4.05 a.m. ET), it is still up around 14%:Investing.com
Cryptocurrency has become one of the hottest areas of investment
in 2017 thanks to the rapid rise of bitcoin, up over 1,500%
against the dollar this year, and the proliferation of new
digital coins created through “initial coin offerings”, where
companies issue their own digital currencies.
Blockchain refers to the cryptographic technology that underpins
digital currencies, allowing them to be decentralized, open
systems. Investors see huge amounts of potential for this
technology in everything from healthcare to voting. (UBS said
this week it believes bitcoin
is a bubble but urged clients to back blockchain.)
Veltyco is not the first company to see its stock jump after
piggy-backing on the recent cryptocurrency boom. On-line, another
AIM-listed company, saw its
share price rocket 394% after adding “blockchain” to its
name. Fintech business LongFin rallied 2,600% in a week
“a blockchain-empowered global micro-lending solutions provider”
that handles cryptocurrencies.
Bloomberg on Wednesday highlighted
a current craze for small-cap companies to pivot to
cryptocurrencies, with everything from furniture
manufacturers to gold miners, and even a sports bra designer,
getting into digital currencies. In most cases, the move has
resulted in a bump in the stock price.