Bitcoin rally reached new highs at Japanese Monex’s platform

303
Bitcoin Reaches $3B Annualized Revenue

Bitcoin rally continues worldwide. The crypto recently dipped for a while, but then it surged forward again. Japanese financial firm Monex Group reported that the crypto hit new heights on its platform as well.

The company’s shares have more than tripled since Bitcoin’s rally gained momentum in October. Monex Group has been tracking the ups and downs of the currency diligently. It gained substantial amounts as clients began buying more digital assets thanks to its crypto exchange Coincheck Inc.

According to Chief Executive Officer Oki Matsumoto, customers are starting to re-evaluate them at last. People realize that Monex isn’t just about stockbroking – Matsumoto noted, adding that their stock was also underrated at the beginning.

However, shares of companies closely linked to digital tokens have been rallying worldwide. Investors pushed them to record highs over the past few weeks. As a result, from the U.K.’s On-Line Blockchain Plc. to the U.S. crypto miner Marathon Patent Group Inc., all such companies soared recently.

How did the coronavirus pandemic influence Bitcoin’s rally?

In 2020, Bitcoin’s fivefold surge came amid a flood of fiscal stimulus pumped into the global financial system. Some investors considered the crypto as a safe-haven currency and, during the crisis, began buying it broadly. However, since then, Bitcoin lowered again until the recent jump.

The crypto is quite volatile, and it fluctuated even throughout its surge, hence the earlier pullback. But despite that sell-off, Monex managed to save most of its gains.

Currently, it is the most expensive stock among Japanese securities companies. Monex’s price is more than three times the book value of its assets.

On Wednesday, the stock plummeted down by 6.4% in Tokyo, pushing this year’s gain down to 136%, but it still shows the second-best performance on the benchmark Topix.

Furthermore, Monex has been diversifying into crypto for some time now. Intensifying competition dims the company’s prospects of its mainstay stock brokerage business. So, the management decided to try hand-in crypto trading as well. Monex Group bought Coincheck in 2018, and it received a license two years ago.

SMBC Nikko analyst Takayuki Hara noted that recently there had been a sharp growth in earnings at Coincheck. He also raised his target price for Monex shares. According to the analyst, the surging price of Bitcoin has increased trading activity, thus encouraging more individual investors to jump into the fray.

Matsumoto also stated that domestic brokerage services, crypto business, and U.S. trading operations currently represent the company’s three main pillars of growth.

For more news updates, visit our homepage now and see our latest news article. Want to learn more about trading? Visit our education page now and learn for FREE!

Tags:

Leave a Reply

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending