Investors are mesmerized with AMD's impressive second quarter

as cryptocurrency mining demand drove the company's financial results above Wall Street's expectations. The chipmaker reported better-than-expected second-quarter earnings and guidance Tuesday. Its shares surged more than 10 percent in after-hours trading following the report and were up more than 9 percent in early regular trading Wednesday.

"AMD turned in a solid beat to our and consensus estimates as the company's new Ryzen desktop CPU ramped into production and GPU demand outstripped supply," Stifel analyst Kevin Cassidy wrote in a note to clients Wednesday. "While management wasn't specific on how much, the GPU revenue upside was driven by cryptocurrency applications."
AMD shares have rallied 102 percent through Tuesday in the previous 12 months compared with the S&P 500's 14 percent return. That performance ranks No. 4 in the entire S&P 500, according to FactSet. Cryptocurrency miners use graphics cards from AMD and Nvidia to "mine" new coins, which can then be sold or held for future appreciation. AMD traditionally has a better reputation for mining cryptocurrencies.

Ethereum cryptocurrency is up over 2,400 percent year-to-date through Wednesday, while Bitcoin is up about 160 percent this year, according to data from industry website CoinDesk. In June, AMD shares jumped after the company told CNBC that the dramatic rise in digital currency prices has driven demand for its graphics cards. At the time, major computer hardware retailers had sold out of AMD's recently launched RX 570 and RX 580 models. Digital currency mining was the key topic during AMD's earnings conference call with Wall Street Tuesday evening. Analysts asked company management three times for clarification on the magnitude and sustainability of cryptocurrency mining demand.

One analyst noted the company is working to mitigate future downside risk and is not incorporating continued digital currency mining outperformance in its guidance. "Crypto mining helped stimulate demand for AMD GPUs in Q2, which we think could translate to a risk should cryptocurrency values decline, AMD is working to manage the crypto risk by targeting supply to the core GPU gaming market, and working with some of its AIB [add in board] partners to offer specific feature sets to segment the market between gaming & mining," Jefferies analyst Mark Lipacis wrote Wednesday. "AMD is not including upside from mining in its outlook."

Lipacis reiterated his buy rating on the company and raised his price target to $19 from $16, representing 35 percent upside from Tuesday's close. To be sure, some analysts are still skeptical on AMD after its big run. "We were surprised at the aftermarket reaction for the stock," Morgan Stanley analyst Joseph Moore wrote Wednesday. "We continue to be somewhat cynical on the long term intrinsic value of the stock, despite being excited about Zen and maintaining numbers that are above the Street. As street numbers start to catch up, absolute valuation levels are going to matter more." Moore reiterated his equal-weight rating and $11 price target for AMD shares.

Chuck Reynolds

Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.

Alan Zibluk Markethive Founding Member

 

Russia’s chief presidential advisor on the Internet

has stated a Bitcoin mining virus has infected up to 30 percent of Russian computers. Speaking in interviews with RNS and RBC, Herman Klimenko said that although infection rates varied by region and device, it involved at least 20 percent of machines. “In regions with lower bandwidth instances are reduced, but we’re looking at 20 to 30 percent of devices being infected — iPhones and Macs are less prone,” he commented.

The figures, if true, are alarming, yet Klimenko’s assessment has already come under public criticism. Speaking to RBC in light of the findings, Internet Ombudsman Dmitry Marinichev called them “rubbish.” “These viruses appear for example on devices of users who have given permission for them to start running,” he said, adding the issue was not about Bitcoin mining but stolen credit card details and similar characteristics. Klimenko, meanwhile, also chimed in on the motives of the hackers behind the recent international WannaCry cyberattack. “In the case of WannaCry, the perpetrators managed to accrue around $50-100,000,”

he told RNS.

“I’m therefore convinced the perpetrators of WannaCry were children because they do not understand where they can earn money in the Internet sector.”

Earlier this month, Russian research lab Group-IB warned of a domestic Android virus circulating consumer devices which would gain access to and empty any associated bank accounts.

Bitcoin, Altcoins Meet London Art As ‘Gray’ Artsy Nets $50 Million
 

 

London’s “tradition-bound” Cork Street art empire is getting an innovation injection

as customers meet Bitcoin and even Monero as payment options. As the BBC reports Tuesday, one gallery, Dadiani Fine Arts, has begun accepting cryptocurrency in what its owner describes as an “intuitive” move. "This is not a demand-driven decision at all, it's intuitive based on the way things are going," Elena Dadiani told the publication. With the global art market worth around $60 bln and average purchase amounts high, the benefits of additional payment channels are obvious. The gallery is not stopping at Bitcoin; Ethereum, Ethereum Classic, Dash, Litecoin, and soon Monero will also be featured. "For me, the Blockchain is going to be the biggest thing since the Internet,” nonetheless hinting she intends to convert at least part of the payments to fiat currency as a matter of course.

Like Blockchain, meanwhile, the art industry itself is undergoing rapid change. Artsy, the online art marketplace seeing huge expansion, this week announced the closure of a $50 mln funding round, something already causing suspicion in a manner strikingly similar to some recent Ethereum-based ICOs. “The news has left many in the industry with two questions,” industry news resource Artnet reports describing the platform as a “gray market.” “First, since Artsy has chosen to keep its actual valuation pitch-black to the public, how much is the company really worth? Second, and just as important, how is that valuation justifiable?”

Chuck Reynolds

Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.

Alan Zibluk Markethive Founding Member

The governor of the US state best known as the home

to a majority of the country's incorporated businesses has officially signed a bill making it explicitly legal for those entities to use blockchain for stock trading and record-keeping. After weeks of anticipation, Delaware governor John C. Carney Jr. signed the bill on Friday, effectively bringing closure to an effort that began in May 2016 when his predecessor, Jack Markell, launched an initiative to promote blockchain efficiencies in government.

First publicized in March this year and introduced formally in May, the bill, which amends Delaware's General Corporation Law, saw a swift passage by state lawmakers. The move further comes weeks after it passed a key vote in the state legislature, a milestone advocates sought to label as "historic" given the state's history and the increase in experimentation that could result from legal certainty. Just how impactful could the law be? Industry analysts suggest that by giving the greenlight to experimentation, the law could make it possible for the custodianship, issuance, redemption and trading to take place on a distributed ledger.

Equity Markets on a Blockchain: Delaware's Potential Impact

Noelle Acheson is a 10-year veteran of company analysis and the author of CoinDesk Weekly, a custom-curated newsletter delivered every Sunday, exclusively to CoinDesk subscribers.Last week, Delaware passed amendments to state legislation that, once signed into law by the end of July, will give corporations registered in the state the right to issue and trade shares on a blockchain platform.While this may on the surface sound like a small modification, it is a big deal. Companies and exchanges around the world have been investigating how distributed ledgers could help with issuance, execution and settlement (some have even issued shares on a blockchain). However, they have been doing so under a cloud of regulatory uncertainty, unsure of whether the stakeholders — including the relevant governing bodies — would allow the innovations to take hold.

For the first time, businesses will be able to experiment with new processes knowing they have the protection of the law. This is likely to pave the way for the entire life cycle of a share — the issuance, custodianship, trading, shareholder communication and redemption — to be enacted on a blockchain. The result could be a reframing of the global securities network, one of the cornerstones of our modern capitalist economy. The equity infrastructure used in most markets today evolved around paper-based issuance, and essentially has the same conceptual backbone as in the 17th century. Processes are complex, involving several steps, each with fees. Centralized clearing creates systemic risk by presenting a single point of failure, and since in most jurisdictions legal ownership rests with the transfer agents, true ownership can be obfuscated — in turn, this can violate rules that limit shareholdings. Furthermore, a paper-based system — even a digitized one — is vulnerable to fraud, and centralized databases can suffer security breaches.

Settle for less

With a blockchain system, investors and issuers can interact directly with each other, in theory cutting out brokers, custodians and clearing houses, thus reducing transaction costs. Settlement can happen within hours instead of days, releasing funds and lowering carrying fees. Legal ownership would be restored to investors and companies, and would be more transparent. Dividends and stock splits could be automated, reducing cost and error.

Also, a distributed ledger platform would remove the single point of failure risk, help make proxy voting more transparent and accurate and make it easier to manage cap tables as well as collateralisation. There are disadvantages. Transparency, for one: not all investors want their positions to be visible. Error resolution is another: mistakes happen, and on an immutable ledger, how do you fix them? What’s more, counterparty risk doesn’t go away, it just shifts. But as work on services and solutions picks up in the light of regulatory approval, so will the development of solutions.

Share the benefits

That this milestone was reached in Delaware is significant. The state is 49th in the nation in terms of size and 45th in population, but it boasts two-thirds of US listed companies and 85% of IPOs. It has more registered legal entities than it has residents. This is due to its relatively flexible business legislation and tax framework, and to its reputation for being a standards bearer in corporate law. What’s more, the recent amendment is part of a larger initiative to streamline corporate and governmental processes. The Delaware Blockchain Initiative, launched over a year ago, commits the state’s government to incorporating blockchain technology in the handling of official documents such as land titles, birth and death certificates, professional licenses, collateral claims and company filings.

So, here we have the US state with the largest concentration of registered corporations, and a reputation for supporting innovation, offering businesses the chance to test a new form of financing and governance. While adoption will probably be slow, at least at first, the pace is likely to pick up as the benefits become even more apparent. Other jurisdictions could follow suit to avoid losing a chunk of their domiciled businesses. And the structure of financial markets could start to gradually, but fundamentally, change. While the Delaware amendment won’t create a market revolution overnight, it does raise a question which highlights the systemic importance of the move: Will traditional equity markets still exist 10 years from now?

Chuck Reynolds

Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.

Alan Zibluk Markethive Founding Member

Thousands of Japanese Retailers, Restaurants May Halt Accepting Bitcoin

 

More than 5,000 retail stores and restaurants in Japan may stop accepting Bitcoin

as a form of payment starting Aug. 1, 2017. This possibility could push through if Bitcoin payment processors will halt their services.

Bitcoin payment processors plans

The retailers and restaurants accept Bitcoin through payment processors bitFlyer and Coincheck. The latter is also partnering with Recruit Lifestyle in order to expand its operation and accept more than 260,000 additional stores across Japan as clients. BitFlyer, however, has announced that it could stop Bitcoin deposits and withdrawals, along with its payment services from July 31 to Aug. 2. Coincheck has separately announced that it will temporarily halt Bitcoin deposit and withdrawal starting Aug. 1.

The company says:

“On Aug. 1, 2017, we may temporarily suspend Bitcoin deposit and withdrawal for Coincheck exchange and payment services to protect users assets…The resume date is unspecified, but we expect several hours to several days. Also, if we decide that a Bitcoin fork will not take place on Aug. 1, 2017, 12 am, the suspension of services will not happen.”

Japanese companies likely to be affected

The move by the government of Japan to recognize the cryptocurrency Bitcoin as a legal tender in the country has led to the increase in the number of stores and retailers which use it in their operations. Among them are restaurant chain Heichinrou, eyeglass retail chain Meganesuper and the electronics retail group Bic Camera.

Post-split

The plans by the payment processors and the various Japanese establishments were triggered by impending developments in Bitcoin platform. These include the planned scaling for Segregated Witness (SegWit) and the possible split of the platform. The plans to temporarily halt Bitcoin payments, however, are expected to have limited effects on the operations of the retailers and restaurants as their businesses are mainly transacted in cash or credit cards.

Tim Draper Acquires 10% of Anti-Email Spam Blockchain Project Credo

 

Alan Zibluk Markethive Founding Member