Spherix Inc (NASDAQ: SPEX) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced that it is entering the cyber security market, leading to excitement among investors and sending the stock screaming for the top. Today, we’ll talk about the news, what we’re seeing from SPEX, and what we’ll be watching for ahead.
SPEX Gains ON Cyber Security Announcement
As mentioned above, Spherix is having an incredibly strong start to the trading session in the pre-market hours this morning after announcing that the company is entering into the cyber security market with blockchain technology. In a press release issued early this morning, the company announced that it has entered into a definitive agreement to acquire 100% ownership of DatChat Inc.
In the release, SPEX explained that DatChat is a privately held personal privacy platform. The platform is centered around encrypted communication, internet security, and digital rights management. The company recently launched its initial product, which is a messaging application that is available to phones on iOS and Android operating systems. There is also a current expansion into peer-to-peer secure emails that will be built on the Ethereum blockchain.
SPEX said that, in addition to this news, it is further solidifying its holistic move into the sector by establishing an Ether mining company as a subsidiary of the company. In a statement, Anthony Hayes, CEO at Spherix, had the following to offer:
Cyber security is a rapidly-growing sector based on the ever-increasing threats to privacy and confidential information. News of data breaches at companies large and small are becoming increasingly frequent. We believe that the DatChat platform offers a solution by giving users total control of their information after transmittal. WE believe that the further development of the DatChat’s messaging technology into an email application will be the next evolution of blockchain, and that it will allow for permanent and ephemeral chains, content delivery, mining and third-party application development.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. This case proved to be no different. The news released by Spherix proved to be overwhelmingly positive, leading to excitement and sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:38), SPEX is trading at $2.01 per share after a gain of $0.71 per share (54.62%) 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 SPEX. In particular, we’ll be following the company’s break into cybersecurity and blockchain, and we’re excited to see the progress as the company moves forward. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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