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DNA DYNAMICS INC (OTCMKTS:DNAD) Explodes On Bitcoin ATM Opportunity

DNA DYNAMICS INC (OTCMKTS:DNAD) Explodes On Bitcoin ATM Opportunity
Written by
Jim Bloom
Published on
December 21, 2017
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DNA DYNAMICS INC (OTCMKTS:DNAD) is the latest company to catch the attention of investors on Wall Street, after making a major bitcoin-related announcement. It does not come as a surprise that the stock has ballooned to record highs, given the hype around cryptocurrencies. The big question now is whether the gigantic move is sustainable.Stock PerformanceShares of DNA Dynamics are currently trading near all-time highs amidst surging buying pressure. With the stock trading in an uptrend, it faces immediate resistance at the $ 0.03 handle which happens to be its 52-week high. A close above the mark could see the stock registering a new record high.On the downside, the stock faces immediate support at the $0.02 handle, below which it could drop to the $0.01 handle. Given the hype around cryptocurrencies investments, it is highly unlikely the stock will drop any further as the company moves to pursue growth opportunities around bitcoin.Before we look at the primary catalysts that are likely to push the stock higher let as first understand what DNA Dynamics does to generate shareholder value.DNA Dynamic Business OverviewDNA Dynamics develops mobile applications and games for smartphones some of which are currently published in iOS and Android ecosystem. The company also develops video games and applications for mobile devices as well as handheld consoles.In addition, the company has moved to diversify its stream of revenues by targeting emerging opportunities around digital currencies.Stock CatalystsDNA Dynamics has entered into the cryptocurrency fray with the announcement that its U.K subsidiary, DNA Interactive has signed a binding term sheet for the acquisition of a crucial patent. The patent if implemented will require every Bitcoin ATM operator to pay a royalty on every Bitcoin ATM transaction throughout the U.S.The unveiling of Bitcoin ATM machines comes at a time when the digital currency is trading at record highs after an impressive year. The cryptocurrencies popularity is growing by the day and people are increasingly looking for ways to convert digital coins to various fiat currencies.Bitcoin ATM is a new concept, with 5,000 units expected to be in operation by next year from an initial 500. Transactions are expected to top highs of 250,000 per year by 2019.

“Crypto-currency is an incredibly exciting market to be involved in at this time and having the ability to earn a royalty on bitcoin transactions undertaken on the fast-growing Bitcoin ATM market puts us in a central position to monetize on the Bitcoin boom,” said CEO, Carl Grant.

DNA Dynamic remains on track to generate revenues of up to $1 million in royalty payment on the installation of bitcoin ATM using its patent.In addition to pursuing revenue opportunities in the cryptocurrency space, DNA Dynamics has announced plans to create a ‘skills’ based gaming platform. The platform will allow gamers to pit themselves against each other as a way of generating some profit from their experience and knowledge.The upcoming gaming platform is to be based on sports activities such as football, baseball, soccer, and basketball. In the platform, the gaming company has integrated a payment processing system that will allow gamers to swap their winnings for cryptocurrencies or game-coins.There is no doubt that DNA dynamics has emerged as a breakout stock heading into the New Year. The stock should be able to spike higher especially on the news about the Bitcoin ATMs that the company plans to power.However, the company faces an uphill task to convince investors on the fence that pursuit of opportunities in the cryptocurrency space is the way to go. The industry is still in the early stages of development and is currently grappling with a lot of uncertainties.Focusing on one cryptocurrency ATM machine may hurt the company’s prospects should the unexpected happen. Bitcoin has mostly ballooned to record highs on speculation. There are already concerns that a bubble burst around the digital currency may occur, given that it has surged by more than $16,000 in value this year alone.While there is no doubt that bitcoin is the most popular cryptocurrency, DNA Dynamics may have to rethink its strategy when it comes to relying on one digital currency for growth. Adding support to various cryptocurrencies is the only way the company can be able to shield itself from weaknesses that may emerge, should one of the cryptocurrency come under pressure.Bottom Line The crypto craze does not show any signs of slowing down anytime. That said, DNA Dynamics remains well positioned to generate significant revenues on its focus on Bitcoin ATMs. However, finding a way to add support for other popular cryptocurrencies should be the company’s long-term plan if it wants to enjoy accelerated growth and hedge against the risks in the space.DNA Dynamics stock should continue powering high in the market as investors take note of the company’s $1 million a year revenue opportunity.We will be updating our subscribers as soon as we know more. For the latest updates on DNAD, sign up below!Disclosure: We have no position in DNAD and have not been compensated for this article.

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