- Net Element's stock rose as much as 300% on Tuesday following news it was launching a business unit focused on blockchain technology.
- The company said it was partnering with blockchain and crypto expert Bunker Capital.
- Net Element is the latest company to see its market cap rise following a pivot to cryptocurrencies or blockchain.
Shares of Net Element soared more than 300% on Wednesday after announcing the launch of a new blockchain-focused business unit. They have since pulled back and are up 254% at $18.60 apiece.
The company said its new business unit will become a "decentralized crypto-based ecosystem" that will help directly connect merchants and consumers using blockchain technology. The unit will also focus on identifying and investing in innovative payment-processing services through the use of blockchain technology and its own development teams.
Net Element is partnering with Bunker Capital, a firm that preps, promotes and markets initial coin offerings and offers blockchain and cryptocurrency expertise.
Net Element's move into blockchain comes on the heels of a number of companies announcing a pivot to cryptocurrencies or blockchain technology. Most recently, Future Fintech Group announced a pivot from selling juice to building financial technology for the agricultural products commodities market. Its shares rose as much as 221% on the news.
According to CoinMarketCap, the market capitalization of the entire cryptocurrency universe has reached over $600 billion in December. It was at just $17 billion in January.