Blue Star Capital (AIM: BLU) is one of the top-listed stocks on AIM right now, but what drove all the buying activity in the second half of this year? As our AIM specialist Tony Cross noted at the end of last week, there is no news to support the big gains last weekend (+ 20% for the title).
Blue Star Capital is a specialist, AIM listed company focused on the tech / esports investment arena. We have already reported esports as a rapidly evolving and very interesting field for investors, both during the pandemic and even until 2022.
The company is run by a Vancouver-based company Derek lew, who is also President and CEO of venture capital firm GrowthWorks Capital. He was also president of Innovate BC.
Investors will remember the London-listed company in November 2019, with a portfolio of six esports companies to its name. Among these were Guild Esports, of which she is co-owner with David Beckham (yes, that David Beckham) and Dynasty Esports. Blue Star Capital has followed the investments in these companies since its IPO, as well as the acquisition of a 9% stake in Training.
Each of the companies that Blue Star Capital supports in the field of esports is active in building a game franchise that has the capacity to derive revenue from various sources, including tournament earnings, digital marketing opportunities. , sponsorship, membership, merchandise and promotional tours. . Each company was also selected because they have a presence in a different part of the world – for example, Guild Esports has a bent towards Europe while Dynasty Esports is strong in South East Asia.
Is Blue Star Capital a pure e-gaming investor?
It should be noted that Blue Star Capital is not a purely e-gaming company – it has also acquired stakes in other companies in the field of technology, including Sthaler (a developer of finger-touch consumer identification technology) and SatoshiPay, a specialist in blockchain-based digital payments.
The enthusiasm for the business is evident – there are few solid e-gaming games on AIM at the moment, which is why investors are looking to Blue Star Capital as a good bundled portfolio of fast-moving companies in the world. this domain.
Recent excitement was generated by Guild Esports recently when it announced the Argentinian FIFA specialist Nicolas Villalba to his list of FIFA players. He is one of the highest paid e-gamers in Argentina with more than $ 290,000 earned to date in his playing career.
Villalba currently plays for Switzerland-based FC Basel 1893 E-sports and has signed a one-year contract with Guild, with the option of a one-year extension.
The global electronic games market is growing rapidly
Insider Information estimates that there will be 26 million monthly eSports viewers in the United States this year. This figure is expected to exceed 31 million by 2023. Some of the growth in North America is attributed to sponsors like big celebrities (eg. Michael jordan) and the success of Fortnite.
The industry is already seeing growing interest from venture capital and private equity firms, and Statista also estimates that the industry’s global revenues will have exceeded $ 1.6 billion by 2024.
We believe that history has legs and that a good way to get your feet wet is through an investment firm that can take stakes in the rapidly growing market opportunities, many of which will not. listed and difficult to grasp otherwise.
Investors should note the high levels of volatility in the Blue Star Capital share price recently; the company has a market cap of £ 12million, so it is very easy for large trades to quickly move the price of this stock.