United American Healthcare Corp (OTCMKTS:UAHC) Just Became A Bitcoin Play

On Thursday, as part of this piece, we took a look at MGT Capital Investments Inc. (OTCMKTS:MGTI) and highlighted the capital injection that the company reported picking up 24 hours earlier. The premise of the coverage was rooted in how MGT can put this capital to use (specifically, through expanding its bitcoin mining operations) and, in turn, how the company stands to appreciate in value as it processes more transactions against the backdrop of a continued increase in the price of bitcoin as an underlying asset.Turns out that there is an alternative way to play this potential, through a ticker we've not covered before but that just took its first steps in the increasingly hot cryptocurrency space.The company in question is United American Healthcare Corp (OTCMKTS:UAHC).At first glance, that doesn’t look like a name that would be associated with technology, never mind digital technology. Operationally, United American Healthcare is a holding company that operates a subsidiary called Pulse Systems. Through Pulse Systems, the company designs and manufactures metal products for the medical industry – components used in stents, implants, that sort of thing.So where does bitcoin come into this?Well, the investment in MGT that we looked at as part of the above linked to article came from an entity called UAHC Ventures. UAHC Ventures was formed by none other than United American Healthcare (sure, the name is a giveaway) at the end of last month with the remit of pursuing "strategic-investment opportunities in promising growth industries, such as blockchain technologies and digital currency."So, through what amounts to its second subsidiary, United American Healthcare has invested in MGT in an attempt to capitalize on the growth we have seen in the space to date and that we are likely to continue to see as 2017 matures to end. In exchange for its $2 million investment, UAHC has picked up a secured convertible promissory note and a warrant to purchase shares of MGT common stock. There is also the potential for the latter to pay its monthly redemption fees in stock, meaning – overtime – UAHC's exposure to bitcoin (through MGT) could deepen.So what is the play here?We are now getting to a point where exposure to growth in the bitcoin space is triple tiered. Purists will just buy bitcoin and draw benefit from price increases. Anyone that wants an exposure but doesn't want to buy the underlying asset can take a position in a company like MGT and pick up a somewhat direct exposure to cryptocurrency through a publicly traded company. Alternatively, and as the third tier in the above referenced triple tiered system, a trader that wants a limited and indirect exposure to bitcoin can take a position in a company like UAHC; a company that already has established operations outside of digital currency but, through its latest two million-dollar investment, now stands to benefit residually from continued activity in the sector.In a sense, UAHC is clinging onto MGT's coat tails with this latest move; that's not necessarily a bad thing, however. We have said on a number of occasions in the past that MGT represents one of the best public market exposures to bitcoin and the crypto currency space available right now and the choosing of MGT by UAHC as the company through which it wants to gain exposure strongly validates our suggestion.To add some financial perspective on the situation, UAHC generated just shy of $9 million revenues during 2015 and 2016, recording a net income for these years at ($882K) and $1.4 million respectively. Cash on hand at the end of the first quarter of 2017 came in at $1.3 million, meaning there exists some degree of dilution risk but it's not substantial and is likely not going to factor in near term.We will be updating our subscribers as soon as we know more. For the latest updates on UAHC, sign up below!Image courtesy of Nathan11466 via FlickrDisclosure: We have no position in UAHC and have not been compensated for this article.