Surge in Seagate stock as rumors of investment in Ripple emerge
Seagate, the computer drive manufacturer is rumored to be the latest entry to the crypto-tech league of companies. This is after details emerged from a 2016 report indicating the company participated in both rounds of funding for Ripple, the third largest cryptocurrency.
According to the report released by Ripple XRP, Seagate is listed as one of cryptocurrency’s initial investors with a 4 percent ownership of the cryptocurrency. However, it is still not clear whether Seagate still owns the said stake as the company has remained tight-lipped on the deal. The rumors had a positive reflection of Seagate’s stock, with its share price at its highest level since 2015. The price has now hit a high of $49, up from $42 at the close of the previous week. If still part of Ripple, Seagate’s investment could now be worth in excess of $7.8 billion at a market cap of $180 billion.
In the meantime, the cryptocurrency is facing market correction after a huge price surge that saw the value of each coin climb to $3.50 up from 25 cents a month ago. The proposed ban of anonymous cryptocurrency trading and raids on various cryptocurrency exchanges in South Korea also triggered a further dip in all major cryptocurrencies with Ripple dropping by 7 percent to its current price of $2.13. South Korea is one of the largest crypto markets with buyers and traders paying premiums of over 40 percent above the international cryptocurrency rates.
However, the reduced price shows little effect on the renewed investor confidence in the company.
The foray by traditional tech companies into cryptocurrency has sparked a renewed interest in these companies leading to a rise in the share prices. An example is unconfirmed reports of a meeting between Western Union and Ripple which is causing a price surge in the financial company’s shares.