DLTx - The banks cryptonite - Mangold Insight Analysis

Mangold inititates coverage of the technology company DLTx, with the Buy Recommendation and a price target of NOK 20,57 per share. The company has several different revenue streams within blockchain technology, and operates in a market with high growth. 
DLTx mines the cryptocurrencies Bitcoin and Filecoin, and invests in projects related to blockchain technology.

The company operates in the Distributed Ledger Technologies market, with an expected annual growth rate of 62 percent (CAGR) between 2019 and 2027. Growth is driven by an underlying demand for decentralised systems, where security is rewarded. The market for mining Bitcoin is expected to grow by 16 percent per year until 2025, and the prices of both Bitcoin and Filecoin have soared over the past years. Mangold believes that DLTx can benefit from the underlying demand for decentralised systems and increase its income through a continued high price of cryptocurrencies.

Mangold valuates DLTx with a Sum of the Parts model. Valuation is based on the estimated value of DLTx projects and their investments. The price target will be NOK 20,57 per share, corresponding to an upside of approximately 45 percent. Mangold assesses that DLTx is undervalued, in terms of the underlying value in its portfolio. Interest in decentralised transaction systems and cryptocurrencies is growing at a high rate, and Mangold believes that an investment in DLTx is timely. 

Tags: