Net Element International Inc. (NASDAQ:NETE) is the latest company to see an explosion in its stock due to the booming popularity of digital currencies. Based on its announcement today, that it was entering into a cryptocurrency deal with a company called Bunker Capital (private), Net Element’s stock has soared an incredible 300% since the market opened this morning, and the stock has been consistently on the move ever since, climbing at a relatively steady rate.
At the time of writing, Net Element’s stock is at $21.23, which puts it up $16.02 (or 307%) from yesterday’s close of $5.21. Based on its announcement, Net Element opened today at $17.80.
The fact that Net Element, a company which deals in transaction processing technology and value-added solutions, is joining forces with Bunker Capital, a company known for its involvement with blockchain and cryptocurrency, is a big deal, as can be seen from the effect this partnership is having on Net Element’s stock. To figure out why it’s such a big deal, all you need to do is take a look at the worth of the cryptocurrency total market – which is now worth over $600 billion, increasing this year from its previous $17.7 billion. There is a lot, a lot, of money pouring into the crypto-sphere right now; everybody wants in on it and anything that it touches, including companies that say they’re getting even the slightest bit involved in anything crypto.
What Net Element is planning to do isn’t a small thing either. The company plans to “become a decentralized crypto-based ecosystem that will act as a framework for an unlimited number of value-added services.” Translation, Net Element wants to use blockchain technology to connect consumers directly to merchants. Bunker Capital has signed on to develop that technology for Net Element. That means that Net Element isn’t just getting involved with blockchain; it’s fully redoing its own framework to integrate blockchain into it. That’s huge news, so it’s no surprise that Net Element’s stock is doing as well as it is right now.
The CEO of Net Element, Oleg Firer, shared the excitement over the company’s development: “We believe that we’re at the dawn of a new evolution where additional digital payment methods are being introduced. Introduction of our division focused on blockchain as part of the NASDAQ-listed entity will add transparency and compliance assurance to our investors.”
I’ll be checking back in with Net Element, as well as other a couple of other blockchain stocks, once the market closes to see where the stocks ended up, so check in with us again in a few hours for another crypto update.
Featured Image: twitter
