The share price of Bitcoin Shop’s stock jumped by over 45% after the company unveiled new investments into various segments of the Bitcoin economy.
Shares had spiked by as much as 100% to $0.22–their highest level in nearly nine months–during the opening half-hour of trade yesterday. The stock is traded on the OTC markets and is no stranger to large price swings, most of which were eclipsed by yesterday’s. It eventually settled at $0.159 per share, yielding a market cap of $22.33 million.
The traded volume of 6.45 million shares was nearly 15x higher than the recent 30-day average, and at higher prices.
Bitcoin Shop’s original project had been the creation of a bitcoin-based e-commerce solution finding shoppers the best prices on the web. The company has since diversified into other segments of the Bitcoin economy potentially offering higher returns, including ATMs, mining and a wallet service. The transformation is symbolized in their rebranding as “Blockchain Technology Consumer Solutions” (BTCS).
Three weeks ago, they announced future plans to expand mining capacity. Yesterday, the company announced that it had secured an 83,000 sq ft facility for its mining operations, which are being augmented by 100 S35 miners from Spondoolies-Tech. Total hashing power will increase to 550 TH/s. Spondoolies accepted 250,000 common shares of BTCS stock as partial compensation for the order.
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CEO Charles Allen indicated that he plans on adding more hashing power, saying, “We’re thrilled to be working with Spondoolies as we seek to increase our capacity beyond 10,000 TH/s and 10 mw.”
Speaking to DC Magnates, Allen expanded upon the rationale for his choice of hardware provider:
“Spondoolies has one of the best products on the market and we are very excited to see what they build next. They were also able to move very quickly and were willing to accept equity as partial consideration.”
Spondoolies-Tech CEO Guy Corem commented that the hardware was built anticipating “a full range of market scenarios such as the current bitcoin price decline and volatility.”
Bitcoin Shop also says that its wallet service employs multisignature technology provided by Gem, a startup in which Bitcoin Shop has recently invested. Gem recently announced the upgrading of its multisig wallet with Hardware Security Modules (HSMs) from payment security company Thales e-Security.