Last month, the Eastman Kodak Company (NYSE:KODK) made company history. Joining the blockchain industry, the Rochester, New York-based company revealed to the public its KODAKOne platform. This platform is entirely powered by blockchain technology. To no surprise, this announcement caused the stock to jump almost 100%.
While this was all very exciting, it seems now that not everyone was on board with the company’s decision to move into the blockchain sector. By everyone, I mean hedge fund Kerrisdale Capital and its CEO Sahm Adrangi. On Wednesday, a research report surfaced in which Kerrisdale Capital said they don’t think the Eastman Kodak Company’s move into blockchain is genuine. In fact, Kerrisdale Capital called it “a last-ditch stock promotion gambit for a company hurtling towards bankruptcy.”
According to the report that was released yesterday, the hedge fund forecasts that the Eastman Kodak Company won’t be able to develop a competitive edge against the other blockchain startups. Why? Because the Kerrisdale Capital doesn’t believe the company has the technological capacity.
Even though I might not agree with the latter statement, I wouldn’t be surprised if Kodak struggled a bit to compete with the other startups. I mean, there are a lot out there. Over the past two months, we have seen a massive amount of companies moving into blockchain, from Long Blockchain Corp. (used to be Long Island Iced Tea) to ChinaNet Online Holdings.
It’s worth mentioning Kerrisdale Capital didn’t say anything negative about blockchain itself. The hedge fund simply believes that Kodak’s plan to become a leader in the blockchain sector is “poorly thought out and will never work as promoted.” As of this writing, Kodak is trading at $5.65, which puts the stock down $0.20, or 3.45%.
Do you agree with Kerrisdale Capital? Personally, I’m not sure who to side with yet. I for one will just have to see what Kodak announces over the next couple of weeks in order to get a better sense on where it stands against its competitors.
Featured Image: brandingbusiness.com