Seagate Technology PLC (NASDAQ: STX) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company’s investments in cryptocurrency are coming to light and causing excitement among investors. Today, we’ll talk about the investment, what we’re seeing from the stock, and what we’ll be watching for with regard to STX ahead.
STX Gains On Cryptocurrency News
As mentioned above, Seagate Technology is having an overwhelmingly strong day in the market today as news surrounding its activities in the world of cryptocurrency hits the wire. While STX hasn’t released any news, various reports surrounding the company’s cryptocurrency activities are starting to break.
Ultimately, STX has a desire to become an active participant in the world of blockchain technology. As a result, the company has invested in Ripple Labs according to David Morton, the company’s Senior Vice President. In a recent interview with CoinDesk, a company thought to be a leader in the cryptocurrency space, Morton explained that there is quite a bit of risk in the desktop PC, laptop, server, and datacenter market. This is likely the reason the company wants to become an active player in the world of cryptocurrency. Here’s what he had to offer:
“Our supply chain is very broad. There’s over 286 components that go into each of our drives, we pull over 51 elements out of Mother Earth and obviously we manufacture in a lot of foreign locations where there’s a lot of exchange risk.
We have 3 million components a day in flight, so you can just imagine the power that this can possibly have down the road from a supply chain perspective, whether that be cash flow or economics.
We process over hundreds of thousands of invoices a quarter, you get into the process of how this improves the supply chain, it’s pretty remarkable.
When it comes to the blockchain, Morton had the following to offer:
“Obviously we would like to be a key user. We’ll work with the proper authorities and companies and our own providers, our banks…”
What We’re Seeing From The Stock
Recently, we’ve seen a ton of movement in tech stocks that are getting involved in the world of blockchain. That movement has not excluded STX. In fact, Seagate Technology is having an overwhelmingly strong day in the market as the story breaks. Currently (10:30), STX is trading at $46.58 per share after a gain of $3.64 per share (8.48%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on STX. In particular, we’re interested in following the story surrounding the company’s movements in the world of cryptocurrency, and we’ll also be following Ripple, the cryptocurrency it is involved in, very closely. Nonetheless, we’ll continue to follow the story closely and bring it to you as it breaks!
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