Shares of disk drive company Seagate Technology (STX) were flying Monday, reportedly due to its investment in a cryptocurrency that has soared in value, though it was sinking on Monday.
In May 2015 a report from CoinDesk, described as a leader in blockchain news, said Seagate invested in digital payment network company Ripple Labs, in its desire to become an “active participant” in blockchain technology.
Ripple Labs, founded in 2012, uses the Ripple protocol and its own native digital currency, called XRP as a way to move money internationally.
Seagate shares were up 9.5%, near 47 during morning trading on the stock market today. The stock was initially up 16%. Ripple plunged 31%, however, according to CoinMarketCap.
According to Value Street Research, Seagate invested in the Series A and B of Ripple Labs, owner of 61% of XRP, a top-three cryptocurrency. Value Street says Ripple holdings of XRP are currently worth more than $180 billion on the market.
According to CoinMarketCap, there are currently 100 billion total XRP in existence, of which Ripple owns 61 billion. Value Street said.
The meteoric rise of cyrptocurrencies such as Bitcoin and Ripple has done more than make some investors rich overnight. It’s also put blockchain – the software technology enabling Bitcoin and other cryptocurrencies — on a trajectory of its own.