Public keys is a weekly roundup from Decrypt that tracks the key publicly traded crypto companies. This week: DraftKings officially enters the prediction market race, a Bitcoin miner makes a comeback, and payments giant Zelle gets into the stablecoin arena.
Predictable for DraftKings
It wasn’t exactly a surprise when DraftKings announced that it had acquired prediction market exchange Railbird. The rumor was first reported by Front Office Sports in July.
But sports betting giant DraftKings, which trades on the Nasdaq under the DKNG ticker, has a unique hurdle to clear. The company already offers its sportsbook in at least 25 states and its daily fantasy sports product in more than 40 states.
DraftKings Prediction Market App Will Focus on States Without Legal Sports Betting
The company doesn’t want to jeopardize its licenses in the states where it currently operates.
Paul Zilm, a sports betting operations expert and full-time trader at prediction market firm Mojo, said some states have already made their positions clear.
“Some states they already operate in have been vocal that launching prediction markets in their states may jeopardize their regulated gambling license,” he wrote on LinkedIn.
But DraftKings doesn’t seem keen to test those regulators’ resolve. A person familiar with the company’s plans told Decrypt its new prediction market app will focus on states without legal sports betting.
Although DraftKings shares saw gains the day of the announcements, they were short-lived. DKNG closed Friday at $33.00 per share, down 4.9% on the day and 3.2% for the week.
Canaan’s turnaround
Bitcoin mining rig manufacturer Canaan got a $4 price target and flagged as an “accelerating turnaround story” by Benchmark analyst Mark Palmer this week.
We’re talking about a very dramatic turn for the company. In May, it was warned that it would be delisted from the Nasdaq because it had been trading below $1. Last week, Canaan got a letter to confirm it was back in compliance with listing standards.
DraftKings Prediction Market App Will Focus on States Without Legal Sports Betting
Now it’s already halfway to Benchmark’s new price target. Canaan, which trades under the CAN ticker, finished the week at $1.89 after having gained 7.39% in the past day and 18.12% over the week.
Palmer highlighted that Canaan’s Avalon line of Bitcoin mining rigs has been gaining popularity.
“We believe the company’s ADRs are very inexpensive,” Palmer wrote, referring to the American Depositary Receipts that allow a foreign company to trade in the United States. Palmer added that the bank expected CAN “to appreciate as it executes on its strategy, with a potential tailwind coming from the rising price of Bitcoin.”
