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BTL Group Ltd (CVE:BTL) Is Our Top Bitcoin Play

BTL Group Ltd (CVE:BTL) Is Our Top Bitcoin Play
Written by
Chris Sandburg
Published on
June 6, 2017
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Here at Insider Financial, we've covered a few bitcoin companies over the past month or so. The dramatic run-up in price we've seen in the underlying asset has translated to some collateral strength in the companies that boast a link to the sector and offer traders an exposure to the run without having to buy bitcoin as a direct asset.One thing we've highlighted with pretty much all of the companies we've looked at, however, is the fact that they are running up based purely on bitcoin's run and – at least for the most part – not because of any advance in their underlying fundamentals. As a short term play, picking up an exposure to these companies has been a rewarding play. The longer these plays go on, however, the riskier they become.Today we're going to look at one that bucks this trend – a Canadian bitcoin play called BTL Group Ltd (CVE:BTL). We say Canadian, it's operations are UK based but the company is registered in Canada.Just as with companies like BTCS Inc (OTCMKTS:BTCS) and BITCOIN SERVICES I COM USD0.001 (OTCMKTS:BTSC), each of which we've looked at recently (here and here), BTL is up considerably this month – the company is trading for a 440% premium to its May open. Unlike with the two above mentioned, however, this one's actually driven by operational advance and this has established a framework for future growth.So the company is working with the blockchain but not the bitcoin blockchain. It's built what's called Interbit, which is a platform that allows for the quick and easy setup of various blockchains. These blockchains can link together or act independently of one another and can perform various smart contract functions as per the requirements of the user. Basically, any time a fresh data store needs to be set up as secure, Interbit can be used to do it.Right now, the technology is in proof of concept stage and the company is focusing on the energy sector; specifically, energy trading through an application built on top of the Interbit platform. Management just announced the completion of a European energy trading pilot with BP, Eni Trading & Shipping and Wien Energie. It was a twelve-week pilot that involved building out an energy trading confirmation solution on the Interbit platform, which was then tested (and proved successful) across eight (out of eight) test scenarios. The pilot proved that Interbit can streamline many trading and back office processes across the energy trade lifecycle and paves the way for advance towards production phase in this industry.That’s a big deal – the company has PoC in hand with which it can go to potential commercial clients and pitch for business. And it's strong PoC. We're literally talking about reducing the lines of code required to build an application by 80-90%.The team behind the company is strong, with the Chief Executive Officer and Chief Innovation Officer two brothers, Guy Halford-Thompson and Hugh Halford-Thompson, each of which have a strong background in the bitcoin space, having founded Quickbitcoin in 2013, which became the UK's biggest bitcoin brokerage and operated the first bitcoin ATM in London.BTL put out its first quarter financials last month and has just shy of $1 million on hand (as of March 31). Revenues for the period came in at $330K for a net loss of $350K.Bottom line here is that this is one of the few really promising public exposures to the bitcoin space and – as of the most recent news (which just hit press yesterday) regarding PoC in energy trading – is ready to start canvassing for big name customers throughout the remainder of 2017.Cash isn’t great but it's not an immediate concern and we expect price to appreciate considerably before the company has to raise capital.We will be updating our subscribers as soon as we know more. For the latest updates on BTL, sign up below!Disclosure: We have no position in any of the securities mentioned and have not been compensated for this article.

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