- Telecoms investment business Stapleton Capital changed its name to Blockchain Worldwide and going after blockchain investments instead of telecoms.
- Share price jumps as much as 130% on the announcement.
- Several companies have seen big bumps in their stock price after pivoting to blockchain or cryptocurrencies.
LONDON — The price of shares in UK small-cap company Stapleton Capital more than doubled after the company said it would look at investments in blockchain technology.
Stapelton Capital, which was formed to acquire businesses in the telecoms sector, announced on Monday that it is changing its name to Blockchain Worldwide and shift its focus towards “acquisitions within the blockchain technology industry.”
Blockchain, also known as distributed ledger technology, was originally popularised as the underpinning of digital currency bitcoin. The technology uses cryptography to allow for shared databases that are instantly updated at all locations. The technology allows people to cut out middlemen such as brokers, central banks, or trading counterparties.
Stapleton chairman Jon Hale, said in a statement: “We have seen a number of very exciting blockchain opportunities in recent months and believe the underlying technology has the potential to disrupt many industries around the world.
“This change in strategy, and name to change to reflect this, could generate significant shareholder value if we are able to acquire one or more of these fascinating nascent technologies.”
Stapleton’s share price rocketed as much as 130% on news of the shift in focus. It is still up over 90% after around half an hour of trade in London:
Markets Insider
Stapleton is not the first company to see its share price leap after a pivot to blockchain or cryptocurrency. Gaming company Veltyco saw its stock price jump 20% in December after it “commenced discussions with blockchain and cryptocurrency providers” about potential partnerships. On-Line PLC’s stock price jumped almost 400% after adding the world blockchain to its name back in October.
In the US, The Long Island Ice Tea company saw its share price rocket 400% after it announced plans to get into blockchain technology. Biotech company BioOptic executed a similar pivot, changing its name to Riot Blockchain last October and seeing a 50% bump in its share price.
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