On Track Innovations Ltd (NASDAQ: OTIV) is having an incredibly strong start to the trading session this morning after the company was the latest in the tech sector to announce its entrance into the cryptocurrency community. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for with regard to OTIV ahead.
OTIV Announces Its Entrance Into Cryptocurrency
On Track Innovations provides various cashless payment solutions. Through their technology, they have already seen some strong growth. However, the company is making a key update, and it’s leading to growth in multiples rather than percentages.
In a press release offered this morning, OTIV announced that it is currently in the process of developing capabilities that will allow it to implement the use of Bitcoin in its cashless payment solutions. Of course, this is big news considering the strong growth that we’ve seen in the bitcoin sector as a whole. With bitcoin quickly becoming the prominent digital currency of choice, it only makes sense that online payment solutions companies would start to implement the cryptocurrency into their systems. In a statement, Shlomi Cohen, CEO at OTIV, had the following to offer:
“At OTI we are working hard and intend to rapidly become Bitcoin acceptable in transactions via NFC, Bluetooth and QR code… We also look forward to integrating Bitcoin acceptance in our innovative ATM and secure cashless vending products.”
How The Stock Is Reacting To The News
One of the first things that we learn when we start to dabble in the market is that the news causes moves. Recently, we’ve seen various examples of announcements of tech companies breaking into the cryptocurrency sector. When this happens, we tend to see strong gains in the value of the stock. Just take a look at the movement we’ve seen in Digital Power Corporation (DPW) over the past couple of weeks. That’s exactly what we’re seeing from On Track Innovations today. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:06), OTIV is trading at $2.18 per share after a gain of $1.15 per share (111.65%) 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 OTIV. In particular, we’re interested in following the company’s efforts to start incorporating bitcoin into their cashless payment systems. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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