ChinaNet Online Holdings (NASDAQ:CNET) has been making headlines ever since the start of this month. It first disclosed that it would be moving into the blockchain industry, causing its stock to jump 300%.
Since then, I’ve been trying to keep an eye on the company. Not because it’s the only company moving into the sector – because there are a lot of organizations making this move – but because ChinaNet Online Holdings plans to work with Wuxi Jingtum Network Technology, a renowned company, to create a number of blockchain applications. This, in my mind, gives ChinaNet Online Holdings a competitive edge against companies like Long Blockchain Corp. (NASDAQ:LBCC) and Recon Technology (NASDAQ:RCON), both of which have also announced a pivot into the blockchain industry.
It has been roughly two and a half weeks since the company first disclosed the move, and ChinaNet Online Holdings seems to already be reaping the benefits, making positive announcement after positive announcement and seeing its stock make a steady incline.
This brings me to today, January 23rd. ChinaNet Online Holdings has made yet another positive announcement regarding its move into blockchain, and the stock is already seeing a more than 10% boost.
What Happened Today?
On Tuesday, ChinaNet Online Holdings, which is an advertising company, disclosed that it has signed an agreement with both Jingtum Technology and Ford Tree in order to create a brand new joint venture company that would focus primarily on developing and researching all that is blockchain technology. The new joint venture company will also focus on developing applications for ChinaNet Online Holdings’ previously announced blockchain units.
We have known, as mentioned, that ChinaNet Online Holdings was going to be working with Jingtum Technology, but this was the first time the public was informed of a partnership between Ford Tree and ChinaNet. According to Handong Cheng, CEO of ChinaNet, the new joint venture company is a “significant step” for the company in order “further extend and develop our blockchain technical strategy.”
To no surprise, this announcement caused a considerable amount of optimism in the market, which caused the company, as of this writing, to trade at $4.22 on the Nasdaq exchange, which puts the stock up $0.48, or 12.83%.
Personally, I couldn’t agree more with Mr. Cheng, as this new company is going to allow ChinaNet to combine new technologies to its existing platform, and if all goes as planned, I wouldn’t be surprised to see the stock continuing to grow in the near-future.
Featured Image: Twitter
