This week in r/cryptocurrency , an article went viral with the clickbait title “You’ll never understand how incredibly freaking happy this makes me – Bank of America Admits Cryptocurrencies Are a Threat to Its Business Model”.
The title is self explanatory. I read the article and found that it was based on an inaccurate interpretation of Bank of America’s 10-K, recently filed with the SEC. As a professional equity investor, I commented on why this interpretation is inaccurate (i.e. Bank of America admitted no such thing), which was quickly voted to the number 1 spot in the comment section with 1,248 (and counting) up votes. (Yes, my Reddit username is “Keeppgoingg” so the first comment is me.) Thanks Reddit!
I thought it would an interesting exercise to see if there are ANY public companies that described cryptocurrencies as threat to their business model, in explicit terms.
I’m happy to report that I’ve found three public companies who actually described blockchain or cryptocurrencies as potentially disruptive to their business model!
With 2017’s book closed, I searched recent 10-Ks, which are filed annually, since they contain risk-factors. We are still in the middle of earnings season, and most public companies still have time to file their 2017 10-K, so we should expect more disclosures to come in the following weeks. Stay tuned for an update!
IBERIABANK Corp (NASDAQ:IBKC)
IBKC is a financial holdings company with a market cap of $4.6 billion.
2017 10-K, filed with the SEC on 2/23/2018: “Fintech developments, such as bitcoin, have the potential to disrupt the financial industry and change the way banks do business.”
Trustmark Corp (NASDAQ:TRMK)
Trustmark Corporation is a bank holding company with a market cap of $2.2 billion.
2017 10-K, filed with the SEC on 2/20/2018: “… fintech developments, such as blockchain and other distributed ledger technologies, have the potential to disrupt the financial industry and change the way banks do business.”
Carlyle Group (NASDAQ:CG)
Carlyle is an alternative asset management firm with a market cap of $7.8 billion.
2017 10-K, filed with the SEC on 2/15/2018: “… developments in financial technology (or fintech), such as a distributed ledger technology (or blockchain), have the potential to disrupt the financial industry and change the way financial institutions, as well as asset managers, do business.”
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