One of the biggest movers on the market today has been the iSignthis Ltd (ASX: ISX) share price.
Its shares were up as much as 16.5% to 17.5 cents in morning trade. At the time of writing they have given back some of these gains, but still sit over 13% higher at 17 cents.
Why did its shares rocket higher today?
This morning the provider of identification and payment authentication services announced that it has completed the integration of its services with cryptocurrency payment processor BuyCoinNow.
BuyCoinNow is an emerging cryptocurrency payment processor that enables the purchase of Bitcoin via credit cards and other payment sources.
According to the release, it is now processing live transactions for BuyCoinNow via its Paydentity service and expects it to contribute revenue during the current quarter.
Management believes that this latest agreement further strengthens the company’s position in the cryptocurrency compliance solutions market, building on previous agreements with Coinify.com and Blockchain.info.
Should you invest?
While the rise of cryptocurrencies has been explosive and there clearly is a need for its services, at this stage it is hard to gauge whether the company will live up to its market valuation.
With 631 million shares outstanding, iSignthis has market capitalisation of approximately $110 million.
Considering revenue came in at just under $1.4 million in FY 2017, the company will have to deliver significant growth in FY 2018 to justify such a premium.
Because of this, I would suggest investors keep iSignthis on their watchlist and consider investments in other fast-growing tech shares such as Appen Ltd (ASX: APX) or Altium Limited (ASX: ALU) instead.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium and Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.