Could First Internet Bancorp Be the Next Bitcoin Proponent?

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What if First Internet Bancorp (NASDAQ: INBK) decides to take the next major plunge — into Bitcoin? The bank holding company already provides online commercial and retail banking products and services. And it is tiny, with a $91 million market cap.

First Internet Bancorp was the first state-chartered, FDIC-insured Internet bank, and it offers a sort of financial supermarket model on a nationwide basis. It operates primarily over the Internet, with no branch offices.

So, is First Internet Bancorp tied to Bitcoin? No. Yet, it could be one of the facilitators if it chose to be.

What people need to consider is that Bitcoin has made a comeback of late. After going under $400 in April (for one day), it turns out that Bitcoin is back above $600. This seems to be the currency that just won’t give up.

For Bitcoin to take off, it will require real financial institutions to help it along. After all, Bitcoin has no central bank. It has no taxation authority or law-making powers, and it has no military to back up its interests. Is First Internet Bancorp the entity that can help Bitcoin? If not, it has a shot at trying to launch its own Bitcoin equivalent.

Now, before the Bitcoin endorsers get too excited, keep in mind that this stock has been thrown onto the trash heap. After peaking at $36 last summer, First Internet Bancorp shares are now at $20 but are up from a low of $17.60. There is no easy clear out here, but there seems to be an opportunity.

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