Blockchain Intelligence Group
17.08.2018 - Equity Research Report (english) // buy
Research Report (Initial Coverage) - Blockchain Intelligence Group - english
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ISIN: CA08906Q1000
Branche: Software-IT-Medien
Rating: buy
Kurs bei Erstellung in €: 0,11
Kursziel in €: 0,69
Mögl. Interessenskonflikt gem. §34b Abs.1 WpHG und FinAnv: 5a;5b;7;11
“BIG offers software solutions that enable cryptocurrencies to be accepted. The company is a first mover and opens up the young, fast-growing market of blockchain technology”
BIG addresses the growing need to regulate cryptocurrencies. This regulation is necessary to make it possible for cryptocurrencies to become part of everyday business life. In addition to tools for analysis and monitoring, BIG plays an active role in shaping the regulatory and political framework.
BIG is a software provider for search, analysis and scoring solutions in the area of digital payment transactions. This applies both to pure transactions in the universe of cryptocurrencies and to the exchange of FIAT currencies (e.g. EUR or USD) into cryptocurrencies (e.g. Bitcoin) and vice versa. The company thus supports established market participants such as governments, banks and e-commerce traders in securely conducting transactions. BIG focuses on the need for secure transactions, which, in our opinion, will be absolutely necessary for there to be economic application in the future.
In the spirit of “Fight the dirty Bitcoin”, BIG enables the identification of criminal or questionable and dubious wallet addresses in this payment system. This allows commercial users to avoid the potential risk of unwanted complicity in money laundering, to comply with regulations, and to manage secure money transactions, whilst governments can associate addresses with entities to remove the pseudo-anonymity and initiate possible prosecution.
BIG is a pure player in the rapidly growing field of blockchain technology, which has as disruptive a quality as the introduction of the Internet, for example. The company does not bear any economic or regulatory risk arising from its own issue or trading in and with cryptocurrencies.
Even if Bitcoin is often equated with the blockchain, Bitcoin is only the first application of blockchain technology. Consequently, BIG’s competencies and products represent a platform technology that can be used in various application areas for hedging purposes, to minimise risk and for risk management.
BIG operates independently of prices and price developments in the global cryptocurrency markets. However, BIG benefits from volatile markets, as these tend to lead to more transactions, requiring a more frequent review process with BIG products.
With its security technology, the company is a first mover and competes in a huge market with only a handful of significant competitors. Competitive qualifications are therefore of secondary importance, as all providers are likely to have disproportionately high growth rates.
BIG is an ideal option to profit from the trend towards cryptocurrencies and, even more importantly, blockchain technology without the strong price fluctuations of the cryptocurrencies. More and more banks, stock exchanges and financial service providers are developing products such as derivatives and exchange-traded funds to invest in cryptocurrencies. The number of acceptance points and ATMs for digital currencies is also increasing daily. Commercial operators and private users have a regulatory interest in conducting secure transactions in order not to be associated with money laundering, for example. As a result, security and scoring software seem unavoidable. BIG has the experienced team, the necessary network and the financial strength to maintain its first mover advantage.
As part of the DCF valuation model, we have calculated a price target of 1.03 CAD (€ 0.69). Based on the current price level, we assign the BUY rating.
Wichtiger Hinweis:
Bitte beachten Sie den Disclaimer/Risikohinweis sowie die Offenlegung möglicher Interessenskonflikte nach §34b WpHG /FinAnV auf unserer Webseite.
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