HIVE Blockchain Technologies Ltd. (TSXV:HIVE) is a Vancouver-based company that is in the business of providing infrastructure solutions in the blockchain industry. The stock surged as high as $6.75 in November near the height of the bitcoin and cryptocurrency boom. Shares have since plunged below the $1 mark, and the stock is down 73.4% in 2018 so far.
Bitcoin and other cryptocurrencies have continued to struggle into the summer. The price of bitcoin dropped below $6,000 over the past month but has since managed to climb back above that mark. Cryptocurrency exchanges have come under fire from governments in China, India, and elsewhere in an effort to stamp out their influence. It has been effective in the near term.
That does not mean that other entities are abandoning crypto and blockchain for the future. The Canadian government has been accommodating as cryptocurrency miners have migrated to its cheap energy market. HIVE owns several cryptocurrency mining farms for cryptocurrencies like Ethereum and zCash. In March it announced the acquisition of Kolos Norway AS in Norway, which it believes will provide it with expansions opportunities. It boasts an exclusive partnership with Genesis Mining, which is the largest cloud mining provider in the world.
Bitcoin miners have taken a major hit with the China market in turmoil, but growth in Canada is promising for a domestic company like HIVE. The bitcoin bubble has deflated substantially, but investors should not turn their backs on blockchain and cryptocurrency. HIVE is a solid speculative buy at its current valuation.
This article provided by NewsEdge.