- Blockchain-focused business unit launched to create crypto-based ecosystem connecting merchants and consumers
- Cryptocurrency and blockchain technology applications market could reach $10 trillion by 2033
- Institutional investment of $7.55 million will support blockchain initiatives and continued growth
Net Element (NASDAQ: NETE), a global financial technology and value-added solutions group that supports electronic payments acceptance in an omni-channel environment spanning across point-of-sale, e-commerce and mobile devices, recently announced that it has completed a $7.55 million private placement of restricted common stock and warrants with a New York-based office that has made several investments in blockchain technology platforms. Shares of Net Element rose on news of the investment, which will be used to fuel development of the company’s blockchain-focused business unit, support growth initiatives and allow for potential acquisitions, Net Element CEO Oleg Firer said in a press release (http://ibn.fm/z1hzf).
“We are delighted to receive a significant investment that will help ensure full scalability of our platform and accommodate the Company’s anticipated future growth as well as the development of our value-added services blockchain platform,” Firer said. “The Company’s balance sheet is now the strongest in its history, allowing Net Element to support future growth opportunities.”
A capital markets analyst with The Royal Bank of Canada predicts that the cryptocurrencies and blockchain technology applications market could reach $10 trillion by 2033, an article in Bitcoin Magazine states (http://ibn.fm/BED3e). In his January 3 report, a summary of which was shared via Twitter (http://ibn.fm/DtSBv), Mitch Steves states that he believes the bulk of the massive market share would be created through blockchain technology’s ability to “secure the internet.” The $10 trillion figure represents one-third of the current size of the market for value storage services such as Dropbox or iCloud, Steves points out.
Net Element’s blockchain-based business unit is expected to become a decentralized crypto-based ecosystem that will act as a framework for an unlimited number of value-added services offered by the company. Net Element’s determination to bring the transparency, security and peer-to-peer sales potential of blockchain technology to its merchants and consumers is driving the company’s move in this emerging market. Net Element has partnered with Bunker Capital to develop and deploy blockchain technology-based solutions.
“We believe that we’re at the dawn of a new evolution where additional digital payment methods are being introduced,” Firer added (http://ibn.fm/vKsaL). “Introduction of our division focused on blockchain as part of the NASDAQ-listed entity will add transparency and compliance assurance to our investors as well as provide access to deploy value-added services to over 20 million electronic commerce clients that are currently part of Net Element’s growing network.”
For more information, visit the company’s website at www.NetElement.com
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