Is Google's New Cryptocurrency Push a Reason to Buy Alphabet Stock?
Its newest service launch joins its ledger launched last year in its crypto product lineup.
Alphabet's (GOOGL +0.78%) (GOOG +0.78%) venture into cryptocurrencies via a new custody service for financial institutions raises the question of whether this could be a reason to buy Alphabet stock. The service, called Multi-Party Compute (MPC), aims to enhance security by splitting private keys into multiple fragments stored across isolated systems.
Alphabet's existing revenue base is so substantial that even if the MPC service generated $1 billion in revenue by 2027, it would only represent a minor fraction of the company's total earnings. While there are existing crypto custody businesses and numerous blockchain platforms vying for adoption, the Google brand may not be a significant advantage in the crypto product market.
Thus, while Alphabet remains a strong investment choice, the new cryptocurrency push is unlikely to substantially impact shareholders.
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