It’s not often that you come across a unicorn and I don’t use the word lightly but I think Quantum Blockchain Technologies (QBT) has the potential to be one
I hadn’t heard about Quantum Blockchain until recently invited to participate in the fundraise. With hundreds of companies to filter through on the AIM, this is often the way you come across such companies
The company have just raised £1 million with the issue of circa 71 million shares and remarkably within two days of trading post the raise has churned nearly 1.5 times the placing. This is quite remarkable and not something you see often (especially in this dire market) but it shows that the market is hungry for the stock and was perhaps waiting for funding to be sorted.
The company is essentially a Blockchain Technology Investment company where they are looking for innovative start-ups that they can invest in and work with to develop leading edge technologies in the sector but in addition the company are running their own R&D in-house programs and believe they have reached a pivotal moment with their flagship bitcoin mining software that uses the like of AI (Artificial Intelligence).
The company aren’t just focused on software however, they are also looking to offer mining hardware and mining pool and data services, the interesting thing right now though is where they are at with their bitcoin mining software.
The new mining software is categorised as follows, Method A and Method B
Method A is software that purports to increase the chances of bitcoin mining success by around 10% this in itself is interesting however Method B is even more exciting.
Now I’m no crypto expert or a mathematician but do have an IT background, and even I can see that the upside potential that could come from the exploitation of Method B is simply huge.
Method B changes the bitcoin mining approach and essentially optimises the search for bitcoin hashes and the company have reported that in testing at a lower difficulty level the approach can save up to 4.3% of energy used to mine bitcoin and theoretically improve the ability to find a winning bitcoin hash by 2.6 or 260%.
The company also said that the proprietary software can sit on top of existing bitcoin mining mechanisms to achieve the above results. This opens the door to a huge bitcoin mining market where there are billions of dollars of bitcoin still to be mined and should the process be further validated it could be a ‘game-changer’ for Quantum Blockchain and its investors.
The risk of course here is that the software doesn’t do what it says on the tin however the company seem very excited and confident with results thus far and believe they have made a real breakthrough in Bitcoin mining.
They will now progress onto a difficulty level closer to the conditions currently prevailing in the Bitcoin mining industry, have a listen to the Proactive interview below to hear what the CEO has to say.
Given that the company have just raised cash that should see them well into next year and the company have just appointed the new marketing and business development manager to establish the rollout of this innovative software, at the current share price level and potential ‘game-changer’ contracts in the offing I see huge risk versus reward upside in Quantum Blockchain at the current share price and with a sensible investment amount reflecting the risks I’ve highlighted.
As I said at the start I believe Quantum Blockchain Technologies has unicorn potential and by that I mean a potential for the stock to see 1000% plus upside (remember the likes of many Big Tech started their lives as ‘nano-caps’ and became unicorns!
If you are a UK crypto investor you will probably have followed the story of Argo Blockchain (ARB) who saw their share price catapult from circa 3p to nearly 300p, that’s a unicorn!
Unfortunately Argo’s fortunes changed when bitcoin crashed down from its highs and the company had to sell off a big chunk of the business however that does not change the fact that the share price moved as it did on the potential the company had at the time and that is the way investing goes in the junior high risk markets like AIM (so again I say, always manage risk!).
I will leave you to make up your mind about Quantum Blockchain Technologies, they are certainly not a one trick pony either and potentially on the cusp of rolling out game-changing software to the industry.
As always, I welcome feedback and you can follow me and message on twitter. https://twitter.com/TheMoneySponge
Disclaimer
Research materials prepared based upon my own analysis and research. Accuracy cannot be guaranteed and research notes should not be taken as investment advice. Please always do your own research.
