GSTechologies (GST) Share Price Surged 28% Today. Here's Why.

Key points:
GSTechnologie share surged 28% on crypto exchange acquisition.
The company just acquired a Lithuanian-based crypto license holder.
GST expects to launch the new crypto exchange in Q4.
Should you buy GST shares? Read on to find out.

The GSTechnologies Ltd (LON: GST) share price surged 28% after revealing that it had completed the acquisition of UAB Glindala, which holds a Crypto Currency Exchange Licence registered in Lithuania.

The fintech company noted that the transaction was approved by the Lithuanian Financial Crime Investigation Service (FCIS). Hence, the firm can launch a cryptocurrency exchange offering crypto exchange services and crypto depository wallet services.

Also read: 12 Best Shares To Buy As a Beginner.

GSTechnologies has signed a contract with a provider of crypto exchange infrastructure to build out the exchange and provide the underlying operations technology. GST plans to launch the new crypto exchange in the fourth quarter of 2022.

The company noted that acquiring a European license for its crypto exchange is a significant milestone as part of its plans to expand the adoption of its Sablecoin across the region.

GSTechnlologies noted that its primary objective with all its fintech businesses was to roll out GS Money starting with three initial use-cases: a private stablecoin, borderless accounts and international money transfers.

The firm intends to use the upcoming crypto exchange to push for the broader adoption of its stablecoin and the use of its international money transfer service and its borderless accounts. GST will also integrate the crypto exchange with its Angra Business.

Tone Goh, Chairman of GST, commented: “With the acquisition of Glindala, our total addressable market is now much broader, and it creates a step change in our combined offerings to our clients. For example, instead of solely relying on costly wire transfers to conduct cross-border trading transactions, Angra’s clients will soon be able to pay out and get paid in crypto assets, including Bitcoin, Ethereum, stablecoins, and other digital assets.”

So, should you buy GST shares? Today’s move is a vital sign that GST shares could be headed since they came off a significant support level. However, I’d monitor the stock for the next few days to see if we will get a retest and a better entry.

*This is not investment advice. Always do your due diligence before making investment decisions.

GSTechnologies share price.