COIN CITADEL (OTCMKTS:CCTL) Still Has More Room To Run

After astonishing returns delivered by Bitcoin in November and December 2017, we need to talk about one of the companies that correctly identified the cryptocurrency boom. Bitcoin Image from https://www.thesun.co.uk/wp-content/uploads/2017/03/nintchdbpict000306226097.jpg?strip=all&w=960Its name is COIN CITADEL COM NPV (OTCMKTS:CCTL), which we featured in our article "COIN CITADEL COM NPV (OTCMKTS:CCTL) Is A Great Exposure To Bitcoin."Our readers should be remembering it very well, as we noted that the share price was reacting positively to BTC appreciations:

"There are several reasons that may explain this shares move. First of all, we believe that market participants are buying the dip because of bitcoin. This is what we could see in the bitcoin/USD chart, as the volume registered increased after bitcoin started its comeback." Source

Why was the share price increasing with the price of the BTC?It is because the CCTL owns 513 bitcoins, which were bought long time ago before anybody else could predict what would happen.Have a look at the following chart for the Bitcoin and form your opinion: 1 month chart for BTCNow have a look at the next chart and compare the results. 1 month chart for CCTLIn our opinion, the share price and the volume increased, but as compared to the reaction of the BTC, the spike was very small.In this new piece, we shall try to explain what's going on with the price of BTC and how it is affecting CCTL.Before we do this, let's revisit rapidly the business objective of CCTL for those who are getting to know the company now. As noted in the OTC Markets site, Coin Citadel is a Holding Company currently focusing on the Bitcoin industry through mergers and acquisitions. It is an entity that was founded in 1986 and is headquartered in Reno, Nevada.The company expects to grow its business by acquiring talent from other companies. It is a brilliant idea that will bring assets, know-how, and technology in a very short period of time.What's going on with the BTC and how it should be affecting CCTL?The price of Bitcoin has gone from trading at $6,000 in the beginning of November to hit all-time highs in December; $17,217. For those who need a calculator, this spike represents 186% returns in less than one-month period. It is astonishing and we believe that few companies or individuals could anticipate this move.Many big banks, such as Goldmand Sachs, are now giving some credibility to the new cryptocurrency. Additionally, exchanges, like the CME, will now be offering futures and options on BTC. We believe that they are all arriving very late to the party, as it happens all the times with big and conservative corporations.Just have a look at the following video of Jamie Dimon talking about BTC. Please note his words "if you're stupid enough to buy bitcoin, you'll pay the price."[embed]https://www.facebook.com/cnbccrypto/videos/1509430695806838/[/embed]So, let's see now when Coin Citadel entered the BTC business.In 2015, the company officially announced that it is going to install its first Bitcoin ATM at the Woodland Hills, California.In a press release announced on Jan 9, 2015, the company provided an update on its launch strategy. Bill Schaefer, Coin Citadel's CEO, said the following words:

"This installation represents the official launch of our activities while we prepare for the filings we must complete in order to receive our MTB license. Once these applications are accepted, we intend to reopen our leading edge online exchange platform, Bitcoiner7. We have also started acquiring other bitcoin assets including hard drives with inaccessible or corrupted bitcoins. Our goal is to use our Bitcoiner7 exchange, and our physical network of ATM locations to serve as the core of all of our bitcoin initiatives while we continue to pursue opportunities that will also allow our company to accumulate a sizeable position in cryptocurrencies on behalf of our shareholders." Source

When were the 513 Bitcoins acquired?Have a look at the following information released in the last annual report:SourceThe company acquired 513 Bitcoins in 2014 when its price was less than $100. It means that the company should have made at least 13,000% returns thanks to this transaction. We believe that the intuition of the management worked out very well. In our opinion, the share price of the company really grew at the same pace that did the assets inside the company. The share price in the last three years moved in the $0.0001-$0.0004 share price range.ConclusionCurrently trading with a market cap of $0.3 million, CCTL is an exciting story among Bitcoin stocks. The company needs to upload its new financial statements and release information about the new plans and whether it is reinvesting the BTC gains.We believe that selling the Bitcoins could enhance the financial situation of the company, which should be appreciated by market participants. Thus, we encourage readers to be alert on this name, as new information on this matter could make the share price move quite a bit.We will be updating our subscribers as soon as we know more. For the latest updates on CCTL, sign up below!Image courtesy of Antana via FlickrDisclosure: We have no position in CCTL and have not been compensated for this article.