ZK International Group Co. Ltd (NASDAQ:ZKIN) has received an investment from NGST Limited, which is owned by Exigent Capital. The result? ZK’s stock is showing a 35% increase since yesterday’s trading.
At the time of writing, ZK International is trading at $12.32, which puts the stock up $3.22, or 35.41%, from Wednesday’s close of $9.10. This is an all-time high for ZK stock since the company went public, having only reached $10.89 as its previous high back in August of this year. The stock actually experienced quite a substantial spike this morning when traded commenced, rising as high as $15.03.
Why would such an announcement have had that much of an impact on the company’s stock? I think it’s less to do with the investment itself and more to do with where the investment is coming from.
ZK International is a company that specializes in high-performance stainless steel and carbon steel pipe products, specifically those needed in sophisticated water or gas pipeline systems. ZK’s investment is coming from Exigent Capital. Is Exigent Capital also a part of the piping industry? That would make sense given what ZK International does. But that’s actually far from it. Exigent Capital is a firm that specializes in cryptocurrency trading and was created by Antanas Guoga, who is also the founder of the first blockchain technology center to connect stakeholders in Asia, Australia, and Europe, called Blockchain Centre Vilnius.
That’s right, we have another blockchain deal on our hands and that looks to be the true reason why ZK International stock is doing so well all of a sudden. There was no indication by either group that this investment would mean that ZK was going to start using blockchain; at the moment it looks to be just an investment, one that leads both parties to be excited about working together. But it’s an investment by a crypto dealer, and that seems to have made all the difference.
Featured Image: twitter
