Shares of On Track Innovations Ltd (USA) OTIV 9.61%, a developer of cashless payment solutions, soared higher by as much as 190 percent ahead of Monday’s market open.
What You Need To Know
On Track Innovations, an Israel-based global provider of near field communication, or NFC, and cashless payment solutions, announced Monday that it’s “developing capabilities to implement the use of bitcoins in its cashless payment solutions.
“At OTI we are working hard and intend to rapidly become bitcoin acceptable in transactions via NFC, Bluetooth or QR code,” CEO Shlomi Cohen said in a statement. “We also look forward to integrating bitcoin acceptance in our innovative ATM and secure cashless vending products.”
Why It’s Important
On Track’s announcement comes at a time when other companies with no prior exposure to bitcoin are rallying upon entry into the space.
For example, Riot Blockchain Inc RIOT 11% — formerly a biotech company called Bioptix — sold medical and biotechnology equipment, but made a $12 million acquisition to acquire a cryptocurrency mining company.
Shares of Riot are up 250 percent over the past month and 570 percent over the past six months as bitcoin mania hits Wall Street. The stock has experienced heavy volatility in both directions, and it would be prudent for On Track’s investors to expect similar large swings moving forward.