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Some people might classify Quantum Arqit (NASDAQ:ARQQ) as a cybersecurity company. However, there is a whole other angle here, because Arqit has a powerful product, QuantumCloud, which deploys quantum computing technology. It’s a very specific niche product, but Arqit is already successfully marketing QuantumCloud. Therefore, ARQQ stock could be a buy and hold with strong upside potential.
With a creed of “Stronger and easier encryption” you might be tempted to assume that Arqit Quantum is just another cybersecurity company. There are already many companies in this competitive field. So what makes Arqit special?
The answer is quantum computing, or more specifically, QuantumCloud. This quantum encryption technology product has already helped Arqit secure some notable customers, including one that will deploy QuantumCloud in space, believe it or not.
ARQQ Stock Offers Affordable Exposure to Quantum Computing
The good news is that you don’t have to be a scientist or a mathematician to invest in ARQQ stocks. Heck, you don’t even need a boatload of cash, because stocks are under $6 each at the time of writing.
However, it is important to know what you are investing in. Arqit Quantum has a product, but it’s a real game changer. It’s called QuantumCloud and “allows any device to download a lightweight software agent of less than 200 lines of code, which can create encryption in partnership with any other device”.
In other words, QuantumCloud harnesses ultra-powerful quantum computing to deliver speed and interoperability. Additionally, security is enhanced because “the keys are computationally secure, single-use, and trustless.”
The company introduced QuantumCloud Release 1.0 with full commercialization last year, and already has contracts and agreements with several companies. These include BT Group plc., Sumitomo, Northrop Grumman (NYSE:NOC) and Juniper Networks (NYSE:JNPR).
Arqit Quantum has a contract with Virgin Orbit
Yet another client is Richard Branson space launch company, pristine orbit (NASDAQ:VORB). Branson’s company licensed QuantumCloud from Arqit to protect Virgin Orbit’s launch and space solutions business.
In addition to this, Arqit Quantum has “an exclusive contract with Virgin Orbit for Arqit launch requirements which may arise from further expected government sales”. Virgin Orbit CEO Dan Hart said he’s delighted that QuantumCloud can help keep his company’s missions and customers safe.
Additionally, Virgin Orbit reportedly announced a $5 million investment in shares of Arqit Quantum. Clearly, Virgin Orbit is not just a partner, but a true supporter of Arqit Quantum.
What you can do now
You never know where you might see Arqit’s next quantum encryption technology, perhaps even beyond Earth orbit. Yet Virgin Orbit is just one of many customers who can provide Arqit Quantum with critical revenue streams.
So you might want to consider grabbing some ARQQ shares while they’re still affordable. You will be exposed to the field of cybersecurity, as well as quantum computing at the same time – and an intriguing technology niche leader with Arqit Quantum.
As of the date of publication, David Moadel had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.