IBM Stock Gets a Pop From a New Blockchain Deal

IBM (NYSE:IBM) investors haven’t had all that much to complain about in 2019. After a precipitous drop over the final several months of 2018, IBM stock has grown in value 26% so far in 2019. It hasn’t been all smooth sailing — August was a rough month for investors — but it’s hard to argue with that kind of growth, especially in an information technology company that’s often seen as a dinosaur from another era.

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The company’s acquisition of Red Hat gets a lot of the credit for helping to goose the IBM stock price, but on Thursday it was another of IBM’s bets that gave its stock a pop: blockchain.

GMEX Technologies announced its latest GMEX Fusion suite (used to manage digital assets including cryptocurrency at an institutional level) will be powered by IBM’s Blockchain Platform. IBM stock popped as much as 1.8% on the news on Thursday, before closing at $142.97 for a more modest 0.53% gain.    

Could Blockchain Help Boost IBM Stock Price?

Blockchain is one of those tech terms that began floating around as a key part of the cryptocurrency market. It was developed just over a decade ago as a way to securely track transactions using the cryptocurrency bitcoin. The benefit of blockchain is that “blocks” of data representing every transaction (including the parties involved and the currency amounts) are timestamped, linked together, encrypted, and distributed. This provides a very secure record that can’t be easily modified.  

Note: there is also a cryptocurrency company called Blockchain, but it is separate from blockchain technology …

Blockchain was developed to track Bitcoin transactions, but it turns out the technology has very interesting enterprise applications. For example, the use of blockchain can speed up banking transaction times, it can be used to track patient health records and it’s already being used to track products through the supply chain. In other words, blockchain…

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