Volume in COIN CITADEL COM NPV (OTCMKTS:CCTL) has picked up again considerably, driving the share price higher. Have a look:
For what reasons? As we said in our previous article called “COIN CITADEL COM NPV (OTCMKTS:CCTL) Is A Top Bitcoin Play“, CCTL is a holding company that became very popular after the market got to know that it had invested in bitcoins last year. Hence, the share price followed the price action of BTC/USD.
This is what we said in our previous article:
“In our opinion, CCTL is one of the best ways for investors to play bitcoin without actually having to buy bitcoin themselves. That’s the only way that we can explain the recent volume.To sum up, try to stay alert, the company may surprise again soon.” Source
The share price increased as a result of the increase in the value of the bitcoin. Many other websites noted this increase. This is, for example, a chart published in Zero hedge:
That’s not all. In the month of August, good news arrived for bitcoin exchanges. According to cnbc.com, Japan and Russia have commenced to regulate the use of the new currency:
“Earlier this month, Japan began accepting bitcoin as legal currency with major retailers backing the new law. Consumer electronics retailing giant Bic Camera began accepting bitcoin last week.” Source
“Russia, one of the strongest opponents of bitcoin is seeking to regulate the digital currency. Russian Deputy Finance Minister Alexey Moiseev told Bloomberg in an interview this week that the authorities hope to recognize bitcoin and other cryptocurrencies as a legal financial instrument in 2018 in a bid to tackle money laundering.” Source
On the top of it, the SEC is also taking steps to regulate it. This is the information that businessinsider.com released on July 29, 2017:
“Earlier this week, the SEC issued the results of an investigative report into the details surrounding a cryptocurrency initial coin offering (ICO) called the “DAO” in the first half of 2016. An ICO is when a new cryptocurrency token is offered for sale to the public, similar to an initial public offering (IPO) in the stock market.” Source
This news was very good for the Bitcoin exchanges as well as for the market capitalization of cryptocurrencies. Consequently, its value in dollars increased in the summer of 2017. As of August 21, 2017, its value is close to $4041.53. Please, note that the value of a bitcoin touched the $2,000 price level in the month of July. Can this crazy uptrend continue for a long time? Honestly, it seems very difficult to predict. Many Forex specialists are looking at the previous returns trying to assess the new price moves, the market capitalization, and the volume of the Bitcoin. Have a look:
So, what are other experts saying? There are many different opinions. Ronnie Moas, a stock researcher of Standpoint, told the cnbc.com that his Bitcoin forecast is $7,500. Additionally, he said:
“I believe there are hedge funds and very deep-pocketed individuals going into this now, really hundreds of millions of dollars.” Source
“We’re in an industry that will probably go from $140 billion to $2 trillion and the bitcoin price will probably move with that.” Source
On the contrary, Richard Turnill, BlackRock’s global chief investment strategist, warned in July 2017 about a potential bubble in cryptocurrencies. This is what he said to Reuters, which was published by the cnbc.com as well:
“”I’m waiting for more downside before I rebuy, but frankly I’m even having trouble telling what it’s going to do, which probably reflects the uncertainty in the market itself,”” Source
How many bitcoins did the company purchase?
We had a look at the most recent annual report for information about the amount of bitcoin owned by CCTL; 513 bitcoins. Additionally, we found information about the total outstanding shares, which is 738,325,308 shares. Interested readers can calculate with these numbers the amount of bitcoins that shareholders would receive at liquidation.
In our previous piece, we said that the company was growing and we needed to be alert as it may surprise. In our opinion, the company did not surprise in August, but the bitcoin valuation did. The news regarding the regulatory efforts that Japan, Russia and the SEC announced in the summer were the catalyst for the bitcoin run. As we claimed earlier, the strong moves in bitcoin affected the share price of CCTL. Thus, we still believe that “CCTL is one of the best ways for investors to play bitcoin without actually having to buy bitcoin themselves“. Additionally, we need to remember that the company is looking for investments in other sectors, so more news is expected. To sum up, we recommend to keep an eye on the company’s announcements or subscribe to our newsletter for the latest on CCTL and other bitcoin plays.
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Image courtesy of Tom Crypto via Flickr
Disclosure: We have no position in CCTL and have not been compensated for this article.