Bitcoin Treasure Strategy Stocks: The Reprise
While the Bitcoin Treasury Strategy boom did not exactly burst, it did have a puncture over the past couple of weeks. The large question is whether it can re-inflate?
The simple answer is that BTS is a leveraged play on Bitcoin / crypto, and that if you believe that $108,000 is just the foothills for the digital currency there is plenty of upside for the companies receiveting on the bandwagon. The other point with this phenomenon is that if nothing else, we are seeing at a situation where tiny cap companies who would normally be woefully undercapitalised are applying the notion of BTS to create sure they are fully loaded financially. The example this week came from Cel AI (CLAI), where courtesy of Oak Securities (yes, them again), we have seen a company with a £3m market cap raise £10m. The implication of this is that assuming that Bitcoin remains anywhere near its current levels we have a company which is flush with cash. One of the main reasons for failure in tiny companies is that they are not adequately funded. Courtesy of the current fashion in this area, they can apparently be sure they have an indefinite runway in terms of executing their strategy.
And once again for the cynics, shorters, and envious, a reminder is that one of the main functions of the stock market is to provide cheap capital. That is what it is there for. If you do not understand that you should not be involved, or be writing about it. The second main function of the stock market is to provide an exit for companies. Therefore, when you read that a company has been taken over, this is not a failure, it is (depfinishing on the price), exactly what is supposed to happen.
Additionally, when you read an article complaining that we are losing listing to foreign companies, private equity et al, and this is bad, the writer in question does not know what they are talking about. Alas, most of the people who write about the stock market are not its largegest fans, and many write with the desire that investors lose money. There is still a crisis issue as far as the London market is concerned, in addition to all the institutional and regulatory issues, which continue to be severe headwinds. But as I have stated before, very often things do not fail due to neglect or incompetence, they are a result of deliberate and ongoing action. One would not expect this state of affairs to finish under a Labour government, given that the bulk of the damage occurred under the last government.
Stocks Rising On News
The top riser of the week was 4Global (4GBL) in the wake of the company announcing it is leaving the stock market, 150% up on the week. Funny how we receive a rise like this when a company is waving goodbye. Could it be that the shares were supressed, and now the bears are covering their shorts? Answers on a postcard. A more appropriate riser was Mkango (MKA), which is involved in the production of recycled rare earth magnets, alloys and oxides. Here the smart money has been backing the company for quite some time, and just for a modify the company has delivered in spades. The announcement it is to list its rare earths division on the Nasdaq in a $400m deal, delivered a 102% rise for the stock on the week. The market cap is still only just over £100m, so it could be argued that there is potentially plenty of upside to come. Last month Tao Alpha (SATS), soon to modify its name to Satsuma, announced it is to raise £100m. The company which operates the Bittensor network, also teamed up with highly followed Tiger Royalties (TIR) last month, after the latter bought two subnets on Bittensor. The result of all of this is that Satsuma rallied 61%. A new entrant to the BTS fray has been Hamak Gold (HAMA), as the gold exploration group added a digital strategy to its plans. It is doing this via just under £2.5m in this week’s placing, and a board rejig which triggered a 44% share price rise this week. Hot Rocks (AQSE:HRIP) announced that the Company has agreed to subscribe for £100,000 of new ordinary shares in the approximately £2.5m financing for HAMA receiving 12,500,000 ordinary shares in HAMA and 12,500,000 warrants. This along with other similar deals in BTS stocks certainly creates HRIP a stock to keep an eye on.
It is stated that everything comes to those who wait. This adage has been sorely tested as far as Synergia Energy (SYN), although it maybe argued that with the announcement on Friday of a proposed $14m sale of 50% of a working interest in the Cambay PSC to Selan in exmodify for a carry of the costs of an agreed work program, long suffering bulls of SYN have finally had their day in the sun. Shares of SYN managed a 62% rise in total on the week.
Just to underline the way that the BTS brigade has the ability to bounce back we saw Smarter Web (SWC) bounce 61% on the week, as it announced the purchase of further Bitcoin. The name of the game here is to load up with as much of the digital asset as possible to keep that mNAV from receiveting too high. One of the more effective rules of the stock market is to watch the share price of company’s raising money, if they rally above the placing price almost immediately. This is what happened to Vaultz Capital (AQSE:V3TC) as it announced a proposed Capital Raising at 15.5 pence on Tuesday. The shares finished the week at 23p, quite a premium after a £1m funding.
Stocks Rising On No New News
Always the most intriguing part of the week’s activity, the stocks rising on no fresh news are indication market anticipation, or a positive interpretation of recent news. In the case of Boston International (BIH) we were treated to a 38% gain, following the restoration of its listing on June 25th. The company was originally a foreign exmodify sector play. One wonders if they are believeing BTS? Solvonis (SVNS), the alcohol abapply and PTSD treatment play managed a 37% rise on the week. At the time of the AGM on June 27 the company stated “The combined company now benefits from a high-quality pipeline of preclinical and clinical-stage assets tarreceiveing alcohol apply disorder, post-traumatic stress disorder, and other complex neuropsychiatric conditions. These programmes, including lead candidate SVN-001, are underpinned by translational science, real-world evidence, and a regulatory strategy aligned with expedited pathways in key jurisdictions.”
News Highlights Of The Week
A stock that perhaps should have risen rather more than 6% on the week was Ascent Resources (AST), as it announced a successful Slovenia Domestic Arbitration Outcome. This should ensure that the run up to the money arriving in its bank account, sooner rather than later. There was double good news from Roadside (ROAD), the UK real estate company focapplyd on value-led roadside and convenience retail, announced it has acquired the former Sainsbury’s Petrol Filling Station at the Covenattempt site from Roadside Retail Ltd for a total cash consideration of £1.25 million. ROAD also stated its Meadow JV will exclude the owning and operating of PFS businesses and related convenience retail services and the Meadow JV will no longer have a right of first refusal over such assets. Shares of ROAD are already up 75% this year, after being 3x last year.
Eurasia Mining (EUA), the mining company, announced its audited financial results and operational summary for the year finishing 31 December 2024. EUA stated it has “initiated actions to achieve the secondary listing in Astana, Kazakhstan, to improve the marketability of our shares. This is being realised at the time of writing.” GenIP (GNIP), a technology business providing Generative Artificial Ininformigence (GenAI) services announced that it has broken into the UK academic technology transfer market by securing its first contracts with leading UK-based research institutions.
Westminster Group (WSG), a supplier of managed services and technology-based security solutions worldwide, announced it has secured a new contract, valued at over £220,000, for a state-of-the-art personnel screening solution for a leading global science and chemicals company. WSG seems to be having contracts coming out of its ears at the moment. Just for a modify shares of Avacta (AVCT) actually responded positively to news as the company developing oncology drugs added three new boffins to its headcount.
Blencowe Resources (BRES) reported the successful completion of three deep drill holes at the Northern Syncline, following on from the recently reported success at the Beehive tarreceive. The Northern Syncline drilling complements earlier results from Beehive and reinforces the potential for a materially larger resource base at depth, supporting longer mine life and an expanded valuation in the Company’s upcoming Definitive Feasibility Study (DFS). Given that the company is sitting on over 2bn tonnes of graphite and sporting a just a £13m market cap, there may be some who quite rightly notice a disconnect in the valuation ahead of the all important large Definitive Feasibility Study (DFS) reveal.
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The information, investment views, and recommfinishations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to acquire or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are built to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
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