Daniel Acker | Bloomberg | Getty Images
Attendees talk to a company representative within the Eastman Kodak booth at an International Consumer Electronics Show.
What do you get when you cross the feverish world of crypto-currencies along having a faded industrial icon desperate for a brand-new lease on life? The answer, provided Tuesday by Eastman Kodak, can be KodakCoin.
The iconic company filed for bankruptcy protection in 2012 after fumbling the shift to digital images. at This particular point the item’s betting its future on digital currencies with an initial coin offering designed to help photographers sell their work. The crypto buzz more than doubled its stock, nevertheless the item’s unlikely to do anything like the same to the company’s sales or profit.
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The Rochester, brand-new York-based company emerged coming from bankruptcy in 2013 relieved of much of its debts along with patents. the item refocused around digital printing, packaging along having a legacy film business of which’s a shadow of the glory days when Paul Simon had a hit song rhapsodizing about Kodachrome. None of those has caught on. Sales fell by a third within the first three years after bankruptcy. They dropped another 8 percent within the first three quarters of 2017, to $1.1 billion, along with the bottom line dipped into the red. The company’s market cap, nearly $30 billion at its peak within the late 1990s, fell to just $135 million early This particular week.
The announcement of the planned blockchain platform along with initial coin offering changed the stock’s trajectory on the day. Kodak can be just the latest to see the potential halo effect of crypto-currencies after bitcoin soared some 14-fold in 2017. In December, stock in tiny Long Island Iced Tea tripled after the item renamed itself Long Blockchain.
Startups raised more than $3 billion with ICOs last year, led by Filecoin, a blockchain data-storage network of which raked in $257 million. Yet the field can be growing crowded. ICO Alert lists roughly 80 offerings currently within the market along having a similar number planning to launch within the next two months.
Kodak Chief Executive Jeffrey Clarke will take whatever he can get. The company has been looking for assets to sell to pay down some of its $845 million in debt, according to Eikon data. A blockchain platform could give photographers a better way to license their images along with receive payment. nevertheless the item’s hard to see how of which will reverse Kodak’s decades-long decline.
Commentary by Tom Buerkle, an associate editor for Reuters Breakingviews. Follow him on Twitter @tombuerkle.
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