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BTL Group Ltd (CVE:BTL) Remains A Top Bitcoin Play: Here's Why

BTL Group Ltd (CVE:BTL) Remains A Top Bitcoin Play: Here's Why
Written by
Chris Sandburg
Published on
September 11, 2017
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Back in June, we highlighted BTL Group Ltd (CVE:BTL) as a company to keep an eye on in the bitcoin space. This is a space that has been incredibly hot over the last six months and that promises to get hotter as 2017 matures towards its close. A number of companies have returned hundreds of percentage points in reward, many of which haven't even really reported any degree of operational advance in line with the growth of the sector, and we're going to see many more examples of the sorts of moves hit the tape during the coming months. BTL Daily ChartThe reason that we focused on BTL earlier this year is that it is one of the few companies in the bitcoin space right now that is actually moving forward operationally. At the time of our first coverage, the company had just announced the buildout of what it calls Interbit, which is a blockchain based (note, not the bitcoin blockchain but another) 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.It's similar in concept to Ethereum but (and, by proxy, target application) and, as the growth in Ethereum applications has shown over the last few months, and specifically as driven by the initial coin offering (ICO) boom, there's real demand for this sort of smart contract implementation tool right now.If BTL can latch onto this interest and satiate some of the growing demand, the company could be on to a real winner with its Interbit platform.So, what have we seen recently that suggests it can meet said demand?Well, management just reported that it has launched the Beta version of the Interbit platform, meaning that the system is now available for use by the technical teams of BTL's clients and partners as opposed to being limited to operation by the in-house BTL technical team (as has been the case since our previous coverage of this stock).By the end of this year, the company expects to have filed a number of patent applications based on the technology that underpins Interbit and, as the USPTO feedback on these applications, each bit of fresh information could serve as a catalyst to get the stock running and compound any then-current upside momentum.We also recently got some fresh interim financials reported, detailing earnings to June 30, 2017. For the six months to end June, the company reported a little over CAD$347,000 in revenues and cash on hand CAD$3.23 million. For a company of BTL's size, this cash on hand figure is relatively strong and should mitigate any near-term dilution risk – at least for the rest of this year. This isn't to say that the company might not raise cash, but it won't be forced into it by operational capital necessity. In turn, this means that, if BTL does raise cash, it has the luxury of doing so on its own terms.So what is next?We are looking for some feedback as to how the Interbit platform performs in the hands of the company's clients and partners near-term and some clarity as to when the program will move out of Beta and into commercial availability. As this feedback comes in, and assuming it is positive, there is a good chance that we will season speculative volume flow towards BTL on the back of a market perception of a similarity between Interbit and Ethereum and, in turn, what this similarity means for the company long term.Bottom line is this: It's far from a risk-free exposure and the bitcoin space is very volatile right now, but in terms of available options, this one looks like one of the best.Check out our previous coverage of BTL here. We will be updating our subscribers as soon as we know more. For the latest updates on BTL, sign up below!Image courtesy of BTC Keychain via FlickrDisclosure: We have no position in BTL and have not been compensated for this article.

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