FinancialCentre broker, Andy Tutcher, says that If you are among those who have ridden the BKKT stock rally that saw its price surge over 50 percent in May, then you know all too well about Mastercard (NYSE: MA)’s foray into the cryptocurrency space.
BK Technologies Corp (BKKT) is a small cap in the industrial sector that is a former provider of seismic research activities services to energy companies.
However, after a huge run-up in May, the stock has pulled back roughly 11 percent since then.
On June 6, 2018, BKKT reported its first-quarter earnings results. The company missed on both the top-line and bottom-line, but it delivered an earnings surprise of roughly 200 percent.
The revenue for the quarter came in at $9.5 million compared to $8.2 million in the same period a year ago. Also, the EPS was reported at $0.02 versus -$0.01 in the year-ago quarter.
During the conference call, BKKT CEO Robert Schwan said that he expects revenue to grow by nearly 30 percent for 2018. He also added that the company’s two major projects would drive this growth.
One project is with Louis Dreyfus Co, a massive conglomerate that deals with shipping and logistics. The company bought into the technology of BKKT and has used it to improve its supply chain and shipping activities.
The other project is with Rössing Uranium Ltd, an Australian uranium mining firm that plans to use the technology from BKKT to optimize their deep-sea mining activities.
On May 16, 2018 Mastercard announced that it was entering the cryptocurrency space. The first step of this expansion came in the form of a partnership with crypto-start-up Abra. However, there have been numerous articles about how BKKT is expanding its operations in the crypto market.
Here are 5things I found about BKKT and how it is expanding its operations as Mastercard enters the cryptocurrency space:
- BKKT Is Operating Abra’s Crypto ATM Network
Abra has grown into a billion-dollar company by offering peer-to-peer money transfers that use cryptocurrencies as a transaction medium. The main idea behind the company is to offer everyone access to cryptocurrencies, even for those who are not technologically adept enough to buy them.
BKKT’sFinance Magnets first reported BKKT’s role in this expansion on May 29, 2018. According to Article, BKKT is partnering with Abra and plans on expanding its ATM network through this newly formed partnership.
BKKT has also been investing in Abra. In March 2018, BKKT made an undisclosed investment into Abra’s Series A round of funding. This means that the company is currently a shareholder of Abra, and it owns a percentage of its equity stake. Here is a quote from a March 30 2018, article published by Finance Magnets:
“BKKT Capital also secured an undisclosed equity stake in Abra through the deal with Silver8 Capital. Abra has recently garnered $16 million in fresh capital via a Series A round of funding.”
- BKKT Is Providing Crypto-Related Technology to Rössing Uranium
In April 2018, BKKT announced partnering with Rössing Uranium to provide them with a blockchain solution.
This announcement caught the attention of many cryptocurrency enthusiasts as it is the first time a major mining company has decided on using blockchain technology for its activities.
Initially, this partnership will focus solely on optimizing the company’s deep-sea mining activities. However, it could expand into other areas over time. Here is an excerpt from the press release that BKKT published on April 16, 2018:
“The currently envisaged project includes the implementation of a pilot for data-logging and monitoring to be conducted at one of Rössing Uranium’s deep-sea mining operations in Namibia. The solution will provide Rössing with the ability to log and monitor data from all their equipment deployed on-site, such as pumps and compressors.”
- BKKT Is Partnering With Louis Dreyfus Co To Boost Supply Chain Operations
In 2020 Louis Dreyfus Co, a massive Dutch conglomerate that deals with processing agricultural goods, will begin using BKKT’s technology to improve supply chain operations.
This partnership was first reported by AZHarp on April 9, 2018, while quoting CEO of Louis Dreyfus Co Gonzalo Ramírez Martiarena. Here is an excerpt from that article:
“Louis Dreyfus Company (LDC), a 100-year old global player in food and agriculture, seeks to develop new technologies and approaches with the help of BKKT’s blockchain technology. The company is planning to adopt this technology for optimizing its supply chain operations.”
- BKKT Is Partnering with Argo Blockchain
In October 2018, BKKT announced partnering with Argo Blockchain to provide them with technology and help establish a strategic partnership.
This is the first time that BKKT publicly speaks about its partnership with Argo Blockchain. This announcement follows a string of rumours published online over the last couple of months since early September 2018.
Argo Blockchain was first started as an investment project by two individuals. The idea behind the venture was to raise capital and invest in companies developing products and services related to blockchain technology. It is one of Britain’s first cryptocurrency mining firms.
This $32 million investment allowed them to expand their mining operations into Canada, where they are now mine bitcoins using renewable energy.
In November 2018, Argo Blockchain received a license from the UK’s Financial Conduct Authority to become the world’s first cryptocurrency mining firm to be listed on a major stock exchange. Here is an excerpt from its public filings:
“Argo wants to be at the forefront of promoting good regulation throughout the blockchain and cryptocurrency industry. It will be companies such as Argo that will form the backbone of a new and better financial system.”
- BKKT Has Several New Projects in The Pipeline
In 2021 BKKT plans on helping a major mining company to mine cryptocurrencies.
This is the first time BKKT publicly speaks about its plan to help a large-scale mining firm. The name of this company has not been mentioned yet, and it may be kept confidential for now until all legal issues are sorted out.
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