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Blackboxstocks, Inc. Stock Surges By 182% Since March, Short-Squeeze, Joint-Ventures, And Record Revenues Fuel The Rally ($BLBX)

Blackboxstocks, Inc. Stock Surges By 182% Since March, Short-Squeeze, Joint-Ventures, And Record Revenues Fuel The Rally ($BLBX)

Blackboxstocks Inc. (NASDAQ: BLBX, $BLBX) stock has been soaring. And the better news for investors on the long side of the trade, the upside momentum isn't slowing. Instead, the tailwind behind the rally is sending BLBX share prices 182% higher since March to levels not seen since November of 2021. Moreover, with the confluence of a short-squeeze, joint ventures, and record-setting revenues driving the move, 52-week highs of $8.00 are in the crosshairs. (*share price as of 4/26/22, 9:39am EST)

Reaching that mark will be well-deserved. BLBX recently reported best-ever revenues, a surge in user engagement, and a robust balance sheet supported by more than $10 million in cash at the end of Q4. Better still, guidance is decidedly bullish, with management leading investors to expect more record-setting performances to continue through the remainder of 2022. A deal announced Monday may have expedited that bullish forecast. 

Yesterday, $BLBX announced that it will enter into a joint venture with CoinRoutes to provide retail traders proprietary analytics and a trading execution platform for the cryptocurrency markets. It's an accretive deal that stays true to the Blackbox mission of leveling the playing field for retail traders by providing advanced analytics and proprietary real-time data once only accessible to the Wall Street elite. Its latest deal takes an already excellent platform and makes it better. 

Joint Venture With CoinRoutes

The joint-venture with CoinRoutes adds to a previously announced working partnership with TradeStation. That combination strengthened the BLBX platform to offer users a Quick-Click feature that loads proprietary automated alerts for options contracts through a simple two-click process. It also saves traders critical time on order entry and execution with lightning-fast execution speed. 

Further, users benefit from real-time Blackbox trading alerts and TradeStation's discounted trading rate with no ticket fee to Blackbox members using the Quick-Click feature. While the relationship with Tradestation is a testament to the BLBX platform, investors and platform users now have more to appreciate. And the value added from its CoinRoutes deal is likely to keep its bull run in high gear. Deservedly so. 

Its agreement with CoinRoutes will provide retail traders proprietary analytics and a trading execution platform for the cryptocurrency markets. It's a timely, accretive extension of the BLBX platform and likely to add considerable revenue-generating firepower. Moreover, it fits ideally into the BLBX mission to level the playing field for retail traders by providing advanced analytics and proprietary real-time data once only accessible to the Wall Street elite. CoinRoutes is a perfect addition to that intent.

Win-Win Deal

Since its launch in 2017, CoinRoutes has provided best-in-class order execution and blazing fast aggregated crypto market data to its institutional clients who trade thousands of different coins and crypto derivative products. The agreement is a win-win proposition. 

For BLBX, they partner with a company providing expedited entry into the booming cryptocurrency market. And CoinRoutes benefit from BLBX's ability to bring its patent-pending order execution system to the masses through the proprietary Blackbox platform. 

It's a natural fit that combines the power of BlackBoxStocks' innovative and industry-best social platform with CoinRoutes' proprietary crypto algorithms and helps people profit from the incredible opportunities in cryptocurrencies. And the opportunity is massive. 

Blackbox is expected to tap into CoinRoutes' position as a leading provider of proprietary algorithmic trading strategies and order execution for the unique market structure of cryptocurrency and related crypto-asset derivatives. And CoinRoutes is no small player. 

They currently provide an Execution Management System that consolidates market data to offer algorithmic trading for over a thousand spot and derivative instruments on over 50 major exchanges and liquidity providers. Not only that, 45 financial institutions that trade over $7 billion in monthly volume use CoinRoutes because they make more money trading crypto with its unique technology. Factor in CoinRoutes' patent-pending distributed architecture allowing clients to keep control over their digital wallets and keys; it's a deal that could deliver significant near and long-term rewards to BLBX investors and expand the CoinRoutes network exponentially. 

Of course, there are more reasons to like BLBX. And they all support a higher share price. 

Record-Setting Growth Across The Board

Although prior results become a historical reference, BLBX's best-ever Q4 quarterly and year-end 2021 results may be a tell for the future. In that period, results were, in a word- exceptional. Total Q4 revenue surged by 62% on a comparative basis, reaching a best-ever $1,687,237. And for the year, BLBX posted an 82% increase in YoY revenues, another record-setting performance that delivered $6,112,324. Margin growth was impressive as well. 

Gross margins in Q4 dollar terms surged by 105%, resulting in $1,110,834 in revenues compared to $542,538 in the fourth quarter of 2020. Better still, gross margin for all of 2021 delivered $4,260,969, an increase of 97%, compared to $2,166,243 scored in 2020. Margin expansion could be better this year, adding to an impressive 69.7% posted at the end of last year. The BLBX balance sheet is also at best-ever levels.

BLBX ended 2021 with cash and marketable securities totaling $10,442,379, compared to $972,825 at Y/E 2020. That 974% increase included proceeds from its initial public offering in November 2021. Thus, betting against BLBX may not be the most prudent course of action, especially when management is as bullish as investors. 

Commenting on its latest report, BLBX CEO Gust Kepler said, "2021 was a pivotal year for Blackbox. We nearly doubled our revenue from 2020, and we have set our sights on continuing this trajectory in 2022. Armed with the proceeds from our initial public offering last November, we are focused on growing our core business and continuing to introduce new and innovative products to the market."

Remember, too, BLBX announced a share buyback program, which could have enough firepower to cut the trading float in half. If they took advantage of prices at the $1.80 level, they certainly dent the O/S count. BLBX had only about 7.6 million shares in the float from its 13.19 million outstanding at the announcement. Utilizing up to $2.5 million to buy back shares could impact turning EPS sooner than later. 

Running With The Bulls

So, while the BLBX sum of its parts was impressive already, its latest deal makes them substantially more attractive as a company and as an investment consideration. In fact, despite the recent spike in price, the BLBX value proposition remains more than appealing; it's too good to ignore. 

And that's not an overly bullish presumption; it's based on a company doing the right things in the right markets at the right time. Record-setting results and potentially transformative deals prove that point.

 

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