| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Online Blockchain Plc (OBC.L) is a UK-based blockchain technology company listed on the London Stock Exchange. Operating in the Software - Application sector, the company focuses on blockchain development, cryptocurrency administration, and incubation of internet and information businesses. Formerly known as On-line plc, it rebranded in 2017 to reflect its pivot toward blockchain innovation. Online Blockchain Plc operates through two segments: Faucet Subscription, which provides cryptocurrency rewards, and Provision of Management Services, offering blockchain-related administrative support. The company serves as a developer, custodian, and investor in blockchain technologies, positioning itself at the forefront of decentralized digital solutions. With a market capitalization of approximately £2.2 million, Online Blockchain Plc is a niche player in the rapidly evolving blockchain industry, catering to both institutional and retail investors interested in emerging crypto and Web3 technologies.
Online Blockchain Plc presents a high-risk, high-reward investment opportunity due to its exposure to the volatile blockchain and cryptocurrency sectors. The company reported a net loss of £1.02 million in FY 2022, with negative operating cash flow (£833k), indicating financial instability. However, its zero debt and £765k in cash reserves provide some liquidity buffer. The stock's high beta (2.253) suggests extreme volatility, making it suitable only for speculative investors comfortable with blockchain industry risks. The lack of dividends and consistent losses may deter conservative investors, but its role as a blockchain incubator could offer long-term upside if the sector matures. Investors should closely monitor adoption trends in blockchain technology and the company's ability to monetize its services.
Online Blockchain Plc operates in a highly competitive and fragmented blockchain services market. Its competitive advantage lies in its early-mover status as a UK-listed blockchain pure-play, offering credibility in a sector rife with unregulated entities. The company’s dual focus on blockchain development and incubation allows it to diversify revenue streams, though its financials reveal scaling challenges. Compared to larger competitors, Online Blockchain lacks the R&D budgets and global reach of established tech firms entering blockchain. Its small market cap limits its ability to compete with well-funded startups or decentralized protocols. However, its UK regulatory standing and public listing provide transparency advantages over private crypto ventures. The company’s long-term viability hinges on its ability to incubate successful blockchain projects or secure partnerships, as organic growth in its Faucet Subscription segment appears limited. Its competitive positioning remains niche, with reliance on broader crypto market sentiment driving investor interest.