Dramatic Spikes in Share Price for Cryptocurrency Companies

Numerous companies involved in the cryptocurrency industries have seen dramatic increases in share price following the spectacular performances of bitcoin and many other cryptocurrencies during 2017.

Bitcoin Group’s Has Seen Its Share Price Increase by Approximately 1060% Since January This Year

Bitcoin Group was founded in 2014 and began as a mining company, however, expanded its operations after rebranding to Blockchain Global Limited in 2016. In addition to mining, the company now provides consulting and startup incubation services to companies in the blockchain and cryptocurrency sectors.

In July, Blockchain Global made a $4.35 million AUD investment into blockchain firm Digital X, including a payment of $300,000 AUD worth of bitcoin. The remaining $4.05 million AUD comprised $550,00 AUD in convertible notes and $3.8 million AUD in shares – seeing Blockchain Global own a 40 percent stake in the company. After the announcement, Digital X’s price moved by 74% at the close of trading. In 2014, DigitalX became Australia’s first listed bitcoin company following the reverse takeover of Macro Energy, however, in 2016, the original founder of Macro Energy was indictedfor fraud, resulting in a significant loss in share price at the time.

Many Companies Involved in the Cryptocurrency Industries Have Seen Recent Booms in Share Price

 

 

Hive Blockchain Technologies Ltd, a Canadian company that mines Ethereum, has seen year to date gains of 4089% as of this writing. At the end of October, Hive announced a “strategic partnership” with Genesis Mining Ltd., through which Hive “will finance the construction of… mining rigs… at [a] data centre in Sweden.” The deal was expected to double “the company’s cryptocurrency mining capacity… in Sweden.” When completed, will see “approximately 78%” of “Hive’s hashpower capacity is expected to be based… in Sweden,” with the remaining 22% being located in Iceland.

In late October, an Essex-based company saw a 394% spike in its share price after announcing that it would change its name from On-line Plc to Blockchain Plc. The jump in price comprised the “biggest one-day gain for the small-cap company since its December 1996 listing,” and was fuelled by “trading volume that… [was] equal to more than 16 times the entire year’s trading before the last two days.” The dramatic rally appeared to be driven by little more than hype associated with the word ‘blockchain’, as the company “caution[ed] investors that the development of its blockchain product is still at an early stage.”