[2017-12-18] More Firms Entering the Bitcoin Market See Stocks Soar

[moriskarlov]

It appears that public companies have found a new way to attract investors to their stocks, implying they are becoming a part of the booming bitcoin market.

Crypto Stocks?

A third company listed on the Tel Aviv Stock Exchange (TASE) has now announced a new connection to bitcoin, and in response it has seen the price of its stock skyrocket. This comes despite the best efforts of the Israeli regulator at preventing bitcoin-related firms affecting TASE trading.

This morning a solar energy technology company, Apollo Power (TASE: APLP), announced it carried out a “successful test” of mining cryptocurrency with the system it’s developing. By basically just mining an insignificant amount of ether for a few hours with solar power the company was able to push its stock value up 150% in early trading. The CEO even had the audacity to say that the technology will revolutionize the electricity market in comparison to bitcoin.

Yesterday an apps promotion company, Apply Advanced Mobile Technologies Ltd. (TASE:APLY), announced that it will launch a new bitcoin-related marketing platform. Its stock went up 170% immediately and ended the trading day 250% higher. The company only had to say it signed an agreement with an unnamed third party to “develop a platform for marketing, distributing, and referring customers to blockchain and digital currencies’ trading systems and platforms.”

Sparking the regional trend was Natural Resource Holdings, a precious metals company whose stock price jumped 3,750% earlier this month after it announced a switch to mining cryptocurrencies.

Another One

This trend of companies from completely different fields claiming a new found love for bitcoin is of course not limited just to Israeli public-traded firms. On Thursday Rich Cigars, Inc. (OTCMKTS: RCGR), a Texas-based cigar company promoted by D.J. Khaled, announced it is switching its name to Intercontinental Technology, Inc.

The company says this was done to reflect a strategic shift to a new direction including “aggressive” and immediate mining of bitcoin and other cryptocurrencies. The penny stock jumped in response from $0.31 to as high as $0.89 that same day.

https://news.bitcoin.com/more-firms-entering-the-bitcoin-market-see-stocks-soar/

[aso118]

This is a replay of the dot com mania. Unscrupulous people are jumping on to the crypto bandwagon and trying to push up valuations. This strategy might work initially, but people will soon go back to evaluating P/E multiples and these stocks will crash. You cannot fool people all the time.

[eyesopen]

i have been hearing a bit about this kind of affect.
that there may be something similar to the .com bubble lying ahead

[entrepmind23]

People who are doubtful of bitcoin would go to the regulated ones because they are feeling secured knowing that these companies are registered so in case they have problems with their investment, they would just go to the company and/or government to settle whatever issues they have and this is what the cryptocurrencies are lacking due to it being decentralized.

Bitcoin is an attractive investment but due to the fact that it is unregulated, people would just invest in stocks related to it and we can see the result of it making those stock prices sky rocket. These are good investments now because bitcoin is sky high but what if bitcoin starts its downtrend? Stock prices of these companies then would slowly go the floor.

[placergold]

Sounds like jokes to me these companies, cigar company start to mine Bitcoin?? Lol give me a break!

[iamTom123]

This is a replay of the dot com mania. Unscrupulous people are jumping on to the crypto bandwagon and trying to push up valuations. This strategy might work initially, but people will soon go back to evaluating P/E multiples and these stocks will crash. You cannot fool people all the time.

Yes, of course, the time for reckoning can be happening soon and then people will realize of their foolishness of getting into a company just because it announced something that has some connection to Bitcoin. I guess this trend is just passing but for companies who are really solid and can follow through on what they are saying this can be a good opportunity to be put on the limelight. What is clear here is that Bitcoin is now carrying some marketing prowess of its own that anyone who is even remotely connected (or claiming to be) with it can reap benefits never before experienced. Now, because of these benefits we should expect more and more companies to be doing the same thing until the intended market will realize that many are just taking a good ride. I am assuming that since no one really is owning the trademark for Bitcoin, we should expecting many who can be carrying that name in their products and services. All of these can be heralding that maybe Bitcoin is now really entering the mainstream consciousness of the global population. Will this be bring good tidings for Bitcoin or a signal of something gloomy instead?

[Harlot]

I'm surprised on how Bitcoin is now being used as a catalyst to drive stock prices up, obviously with  these news it certainly does not affect the financial performance of the company in the short term, but if you are holding that stock for the long term than Bitcoin will really help the company grow. Another thing that might be happening is the company's own board of directors are driving its stock prices up and then dumping it which is a common practice these days.