Crypto-cession services have been considered a critical element for the flow of institutional funds in encrypted markets. The US SEC also mentioned the same a couple of times while disapproving of Bitcoin's ETF. A lot of exchanges including Coinbase and Swiss Exchange SIX have launched their custody services and the latest addition to this list is Hyperblock which has secured a contract to provide Crypto Custodial insurance services for the first institutional client.
Hyperblock shares rise by 50%, probably triggered by the announcement of Crypto Custodial
HyperBlock Inc. (CSE: HYPR) is one of the largest cryptographic asset companies listed on the stock exchange in North America. The company operates one of the largest and most efficient cryptocurrency data centers in North America and is committed to helping people and businesses create, safeguard and manage cryptographic resources. Its offers include server hosting, server hardware sales, Mining-as-a-service and now a proprietary Custodial custody product.
Announcing the results of the second quarter (Canada follows the format of the Financial Year of April-March), the company made this important announcement regarding its crypto-custody services that triggered the stock prices of the 50 %. HyperBlock has confirmed that it has received written insurance coverage from an A +-rated insurer, for its newly launched proprietary cryptocurrency service, HyperVault. HyperBlock also announced that it has signed a three-year agreement with a private investment bank based in the Caribbean to provide insured custody services. The contractual conditions provide for the start of a minimum of $ 10 million in assets under management, with a maximum balance of USD $ 400 million in managed cryptographic assets.
The CEO of HyperBlock, Sean Walsh, said he had mentioned it
"Although it was a demanding road that required significant attention and investment, HyperVault is a potential turning point for HyperBlock"
The result also had another significant announcement that said HyperBlock will transfer 100 percent of its servers to US data centers
Regarding this decision, CEO Sean Walsh said:
"During the third quarter, HyperBlock began to aggressively reorganize our team and reduce the data center and other operational costs inherited from the merger of CryptoGlobal.We took these measures in anticipation of the continuous challenges of the market and our goal is to consolidate 100% of our mining operations in our Project Northwest datacenter ",
The company estimates that the consolidation of the data center at Project Northwest will be complete in the first quarter of 2019. Walsh states that moving from its Eastern Canada datacenters, HyperBlock plans to potentially save around $ 250,000 in monthly operating costs, due to an average price of current energy to the North-West Project of 3.3 cents.
As for numbers, HyperBlock has achieved impressive Q2 financial results, thanks to its greater focus on cost reduction and capitalization of post-merger efficiencies. The quarter's EBITDA was 3 million Canadian dollars, waiting to see the kind of results it will report for the third quarter. The company ended the quarter with revenues of CAD $ 10.1 million.
The presentation of a cryptographic solution should turn things around for Hyperblock as the stock is languishing at its all-time low. This should also allow the company to turn to institutional investors and change their luck.
Will Hyperblock be able to capture the institutional market through its HyperVault? Let us know your opinions on the same
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