One of the biggest news of the past few days has been a formal embrace of blockchain technology by Chinese President Xi Jinping, and that has resulted in a major rally in XNET stock.
Xunlei Ltd (NASDAQ:XNET) is one of the leading blockchain companies in China, and the rally in the stock is understandable. In a new development, Xunlei today announced that it is going to set up a fund worth $100 million, which is going to be solely focused on investments in the blockchain space. In addition to that, the company has also revealed that the fund in question is going to be kept completely separate from other entities.
Xunlei has been working in the blockchain space, but it is a well-known name in many other lines of technology as well. For instance, it provides cloud computing services, and in addition to that, it is the manufacturer of China’s most widely used download manager.
The rally enjoyed by XNET stock has been one of the biggest stories of the week so far. For a long time, it was thought that China was not going to use blockchain technology in a meaningful way. However, last weekend, the President of the country stated that the government is looking to invest heavily in blockchain technology.
Considering the fact that Xunlei is one of the biggest companies involved in blockchain technology in China, the stock soared once the news broke. XNET stock has rallied by as much as 135% since then and has shown great momentum to probably scale fresh highs by the time the week finishes.
Xinhua News Agency first reported that the government is exploring options to invest in blockchain technology. While it is true that the company markets itself as a cloud computing as well as a blockchain technology company, it has not yet revealed the sort of revenues that it earns from the latter business.
At the time of writing, XNET stock is up 7% at $5.45.
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