Inside the Blockchain Companies Listed On Public Exchanges

Investors wanting exposure to blockchain-focused companies have traditionally been limited to largely unregulated cryptocurrencies and exchanges. While not a pure-play, investors have shown interest in companies such as IBM (NYSE:IBM), Alibaba (NYSE:BABA) Group, Fujitsu (T:6702), Mastercard (NYSE:MA), and ING Groep (AS:INGA) for their blockchain practices and innovation in the space.

The good news is that around the world there has been a silent movement of blockchain technology firms that are avoiding any kind of speculative fundraising practices and instead have decided to pursue public listings on some of the world’s most well-known exchanges and markets.

The criteria for blockchain companies to get publicly listed is no different than any other company. Companies must submit all required documentation, meet all exchange listing standards, fund an underwriter or sponsored facilitator, and apply.

In some cases, the companies started off as internet or technology companies before publicly declaring themselves as blockchain companies. The most notable is Overstockcom (NASDAQ:OSTK) which was founded in 1999 as Deals.com and has since evolved into one of the first security token issuance providers as well as one of the first retailers to accept Bitcoin as payment.

While a good example of a successful transition, not all companies shared the same success. Long Island Iced Tea (OTC: LTEA) experienced a 200% jump in its stock price after adding the word “blockchain” to its name in December 2017. Unfortunately, the hype was temporary as the company failed to remain active.

Across the pond, European companies have been well received by exchanges as companies search for liquidity and validation in public markets. In Germany, one company has managed to list on three of the largest exchanges. Advanced Blockchain AG is listed on the Frankfurt Stock Exchange (FRANKFURT: BWQ), Dusseldorf Stock Exchange, and on Deutsche Börse’s Xetra.

In Asia, we have seen companies like Blockchain Industries (OTC: BCII) was first established by a parent company in Singapore and has been listed on the OTC markets since mid-2018. The company has expressed its intention of going public in the US through a reverse-merger.

In the middle east, Israeli owned Atlas Blockchain Group (CSE: AKE) secured nearly $5m USD in financing to acquire all of the issued and outstanding shares of Isracann Biosciences. The blockchain mining and technology company previously went public on the Canadian Securities Exchange.

A lot of these companies mentioned did not raise money through an ICO or any kind of crowdfunding campaign. This means they likely did not capitalize on the often extreme sums of capital that were being thrown at blockchain companies in 2017 and 2018.

Going public gives companies with traditional structures the opportunity to raise additional capital to expand and diversify risk ownership. With the recent news around Facebook’s Libra Coin, blockchain companies are now on the international spotlight, for better or worse, and it should be expected that more blockchain companies will seek public listings as the industry grows and matures.

Securities Disclosure: the writer of this article holds no direct investment interest in any company mentioned in this article.