WATCH FOR TECH COMPANIES DABBLING IN BITCOIN

If you’re looking for strong investing and trading opportunities, you may want to start looking into tech companies. Not just any tech companies however. While tech has been a fun sector to watch over the years, now is the time for tech companies dabbling in cryptocurrency. Today, we’ll talk about what we see when a tech company announces that it’s working in the cryptocurrency space, why this creates opportunity, and what you should be watching for ahead.

WHAT HAPPENS WHEN A COMPANY ANNOUNCES IT’S GETTING INTO CRYPTOCURRENCY

With cryptocurrency being so overwhelmingly popular, it only makes sense that when a tech company starts to dabble into the cryptocurrency industry we tend to see gains in the value of the stock that’s representative of the company. In fact, there’s a very recent example of this. To be exact, we saw a strong example of this on Wednesday.

On wednesday, a company, known as Digital Power Corporation, announced that it was launching a new business division that is dedicated solely to the mining of cryptocurrencies. In the announcement Digital Power Corporation said that it would start by mining the top ten cryptocurrencies, including but not limited to, bitcoin, bitcoin cash, ethereum, and litecoin. As a result of the announcement, the stock skyrocketed, closing the day up by more than 20%.

This wasn’t the first time we saw a cryptocurrency-related announcement out of Digital Power corporation either. In fact, over the past month, the stock has been soaring as we hear more and more news about the company getting involved in the industry. Early in December, Digital Power Corporation announced a new product line of advanced power supplies designed for the bitcoin mining industry. On a 30-day basis, Digital Power Corporation has grown from around $0.50 per share to more than $5 per share on news that was, for the most part, associated with cryptocurrency.

WHY DOES THIS CAUSE SUCH MONUMENTAL GROWTH?

Looking over the past 30 days, DPW grew by around 5 multiples; not 5%, 5 multiples! So, what is it about the cryptocurrency industry that causes tech stocks to fly when the companies announce that they are getting involved in the cryptocurrency industry? The answer is simple really.

Ultimately, companies can only be as strong as the products and services they have to offer. With that said, cryptocurrency is a strong offering. With most cryptocurrencies around the world seeing exponential growth, everyone seems to want a piece of the profits that are being created within the industry. So, when a technology company announces that it’s going to get involved in the industry that’s creating such profits investors get excited, leading to further demand for the stock and causing growth.

WHAT TO WATCH FOR AHEAD

Moving forward, the cryptocurrency industry isn’t likely to simply create opportunities around cryptocurrencies themselves, but also around various technology stocks that are getting involved in the industry. Moving forward, keep an eye out for companies like Digital Power Corporation, Advanced Micro Devices, NVIDIA Corporation and others that are getting involved in the cryptocurrency space. Also, continue to watch for other tech companies in the power supply and memory industry that may get involved. After all, a single announcement about getting involved in the industry can lead to momentus gains.

This article was written for marketing purposes and does not constitute investment advice. The information in the article represents the general views of our experts and does not take into consideration the personal circumstances, investment experience or financial situation of any reader.