WISeKey International Holding AG (WKEY), a cybersecurity company, has surged 11.30% in aftermarket trading session. Consequently, WKEY stock is trading at $4.53 at the time of the writing. On Monday, WKEY gained an increase of 3.56% during the mid-day session and closed the day at $4.07. The increase in WKEY stock could potentially be attributed to the announcement of investment in Bitcoin mining.
Why WKEY Rising?
On Monday, WKEY announced that it intends to invest about $10 million over the next two years. The company would do this investment to perform Bitcoin mining. The investment is aimed to adopt cybersecurity technologies to aid the customers in defending themselves against the illegal mining activities of different cryptocurrencies. The company’s main objective while entering the crypto mining business is to help the clients protect against crypto-jacking.
FY2021 Revenue Guidance
On 22nd November, WKEY announced the full year 2021 revenue guidance. The company expected the full-year revenue for 2021 to stand at $20 million. That would be an increase of 32% when compared with the statistics of 2020. The increased revenue for the fiscal year 2021 is driven by the addition of new customers, favourable pricing, and most crucially, the higher revenue brought in by the AI sector. During fiscal 2021, the company also reinforced its product offering decentralization strategy via strengthening digital identity and NFT blockchain-based solutions.
While commenting on the above development, Carlos Moreira, founder and CEO of the WKEY said that the main focus of the company during the year was on the development and commercialization of the NFT platform. The company recovered from the effects of the COVID-19 pandemic. As a result of the subsiding effects of the pandemic, there existed a global slowdown in the semiconductor market, but with the subsiding effects of the pandemic; the industries around the globe are seeing higher semiconductor demand. As a result, the company has signed new agreements of semiconductors with some of the world’s leading companies.
Future Outlook for WKEY
The last three months have seen WKEY stock declined by more than 30%. Numerous market and company-related factors are perceived to cause this decline. However, the analysts are optimistic that the stock would provide better returns when an investor would invest for the longer term.