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Blockchain has quickly become a massive opportunity and is one of the hottest sectors for investors. Although this opportunity is significant, investors need to be cautious and focus on companies that are executing on profitable growth initiatives, that offer a differentiated opportunity, and are led by a management team focused on creating value for shareholders.
So far this year, we have seen a major influx in the number of companies claiming to be leading blockchain and cryptocurrency firms. While the opportunity is exciting, selectivity is key and we are focused on finding value in this emerging market.
Today, we highlighted a company levered to the blockchain/cryptocurrency sector that we believe is well positioned for significant growth. The company, Block One Capital (BLOK:TSX) (BKPPF) is an investment company focused on high growth opportunities in the blockchain and digital currency mining sector.
Block One Reports Major Milestone
We are favorable on Block One due the attractive investment strategy and the company’s focus on identifying early stage, high growth opportunities with actual management teams. When it comes to the management team, Block One is led by one of the best in the business and we think this is a major differentiator for the company.
Earlier this week, Block One announced a major milestone and received a $750,000 allocation in Shopin, one of most highly anticipated initial coin offerings (ICO). To date, Shopin has raised approx. $40 million and is focused on executing its strategy of connecting retailers and consumers.
Shopin is able to improve the shopping experience for retail customers, which is a major need for stores as they try to compete with companies like Amazon (AMZN) and Walmart (WMT). Through Shopin, consumers are rewarded by retailers for sharing content, receiving ads, and referring friends.
One of the greatest aspects of Shopin pertains to what it gives back to the consumer as well as the retailer. After the fiasco over at Facebook (FB) and Cambridge Analytics, control over data is very important and Shopin compensates users for this control.
An Execution Story
Block One’s focus is sourcing, evaluating and investing in early stage, high growth opportunities at attractive valuations. The company’s pipeline represents best-in-class opportunities founded by true technology pioneers with industry applicable track records.
Going forward, one of the most crucial strategic initiatives pertains to Block One’s participation in attractive pre-sale ICO offerings. The company has assembled a team of industry leaders to help ensure proper due diligence is conducted and to capitalize on these high-growth opportunities.
The allocation in the Shopin ICO shows continued execution by the Block One team and we are very favorable on this development. The ICO has been highly anticipated and we view this a significant catalyst for the company.
Owns an Attractive Portfolio of Blockchain/Cryptocurrency Assets
Earlier this year, Block One acquired 90% of TG12 Ventures Inc., a cryptocurrency mining company that is in the process of bringing online a diversified cryptocurrency mining operation to the Midwest United States. TG12 will be implementing two types of miners: Bitmain’s S9 Antminers and Canaan’s Avalon 821s..
One investment we are very excited about is Block One’s 40% ownership interest in Finzat Block LLC, a New York based mortgage blockchain company that wants to streamline and digitize the United States mortgage market using innovative blockchain applications to create a system which is Simple, Auditable, Fault-tolerant and Efficient (SAFE).
In February, Block One purchased up to 40% of OMAAT LTD. (dba CUIPO), a London based technology business that is focused on harnessing the power of blockchain to digitize and democratize the purchase and preservation of natural land assets. CUIPO specializes in developing technologies and infrastructure to save and protect endangered lands, achieved by using a patented virtual grid system and tokenization method, one square meter at a time.
An Undervalued Opportunity
In late December, Block One Capital significant strengthened its balance sheet after closing an oversubscribed $10 million private placement of 10 million units at $1 each. Each unit is comprised of one common share and one-half of one common share purchase warrant ($1.50 for a period of two years).