COSTAS INC (OTCMKTS:CSSI) has sparked to life after being in consolidation mode for the better part of the year. Shares of the digital company are spiking higher in response to the company’s recent push into the booming cryptocurrency space.The share price has gone from trading in the sub $0.04 level to record highs of $0.40 in a span of three weeks. The strength of the upward momentum now threatens to push the stock to the $1 a share handle. The meteoric rise does not come as a surprise given what is going on behind the scenes.For the full year, the stock is up by more than 400%. The impressive run can only be compared to the gigantic gains being registered in the cryptocurrency space.Trading volumes on the stock have spiked in the recent past, and as it stands the stock could make a push for its 52-week high of $0.59. On the downside, the stock faces immediate support at the $0.28 handle below which it could drop to the $0.12 handle.With all the hype in the cryptocurrency space, Costa remains well positioned to continue powering high. Before we look at what is likely to push the stock higher, let us look at what the company really does.Costas Inc. Business Overview Costas Inc. bills itself as a digital media company. The company owns and develops web-based consumer internet assets in the U.S and India. It serves the media & entertainment, agency retail, manufacturing and financial services industry.The company is also in the education business where it offers undergraduate and graduate degree courses as well as systems integration and software services. It also operates an online job portal that offers recruitment and placement services.In the recent past, Costa has started to invest in early-stage digital currency projects as it explores new opportunities for growth in the booming industry. The company is planning to maximize its positions in new and existing business with exposure to the blockchain technology. The company strongly believes in the growth of Distributed Asset Technology.Recent Developments Renewed investor interest in Costas follows the announcement at the company is set to provide Cryptocurrency ATMs to L.E.J.C as. Based in Costa Rica, the company has contracts for ATM placement and operations in casinos and sports book groups across Latin America.The agreement paves way for Costa Inc. to supply up to 300 cryptocurrency ATM machines for various markets across Latin America. L.E. J.C is currently in negotiation with two of the largest convenience store operators in Mexico, in pursuit of the deals for the ATM machines.
A spokesperson for L.E.J.C. stated, "The Latin American market is fast growing, underserved market, and most in need of a secure, cost-efficient method of funds transfer and currency exchange. Mexican nationals in the U.S. sent $22 billion back to Mexico in 2016.”
In addition to the cryptocurrency market push, Costa has been working around the scene to extend its footprint in the gaming industry. In June, the company held talks about the possibility of acquiring Olympian Gaming Group. The acquisition would expand the company’s footprint into the high growth gaming markets.Olympian Gaming Group should help Costa venture into the international online casino market given that it boasts of a world leading gaming software and a very robust payment system. The acquisition target is also capable of providing state-of-the-art localized mobile payment solutions regardless of the market of operation.Costas has also entered into a joint venture with ImpressArte. Pursuant to the agreement, the company is to provide capitalization, visibility and financing arrangements for the joint project. ImpressArte on its part is to market and sell its products in a bid to create revenue streams for Costas.
"This is a fun and potentially quite profitable marketing venture for Costas that benefit our current and future operations. We anticipate this venture should allow us to profit from marketing efforts as opposed to expending company cash for advertising,” said Clifford Redekop, CEO of Costas, and Inc.
Bottom Line Currently trading with a market cap of $8.7 million, Costas has emerged as an exciting pick for investors looking to gain some exposure to the booming cryptocurrency industry. The massive orders for Cryptocurrencies ATM machines that the company has received can only point to one thing, increased revenues.Given the hype and the fact that the cryptocurrency sector is just bust starting to grow, Costas Inc. remains well positioned to supply ATM machines as demand soars. Expansion of operations footprint into the online casino business further underscores how the company’s diversified streams of revenue.We believe the company remains well positioned to generate significant revenue given the two sectors of growth that it is paying close attention to. Increased revenues should lead to more cash flow that could eventually end up in investor’s hands.We will be updating our subscribers as soon as we know more. For the latest updates on CSSI, sign up below!Disclosure: We have no position in CSSI and have not been compensated for this article.
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