As with all hot trends, bitcoin has attracted its share of odd companies pivoting their businesses to try their luck as digital currency firms. Specifically the phenomenon has been seen among low value penny stocks that have attempted to use a pivot into becoming bitcoin related companies as a method to increase interest in their stocks. Heading the list of companies pivoting has been penny stocks from the mining sector, who appeared to be seeking a last opportunity as they neared insolvency amid little to no success in their precious metal and energy mining. The change in direction is reminiscent of what took place during the dot com bubble of the late 1990’s when many mining companies shifted to become internet companies, but ultimately very few had any lasting success with the endeavor.
Among the current batch of companies, there does appear to be some substance among the initiatives with BTX Trader acquired by WPCS International continuing to churn out new products, while the Amazon of digital currencies, Bitcoin Shop (formerly Touch It Technologies) has been not only expanding its offering but also investing funds in the sector via strategic partnerships.
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But is the hot trend fading? Probably not, as venture funds continue to pour into the sector. However, last week revealed indications that at least as a speculative play, bitcoin interest may be losing some of its momentum. Becoming the first penny stock to divest away from digital currencies, Bitcoin Collect announced that it was exiting the market to become a medical device maker. The announcement came as they disclosed the acquisition of Good Vibrations Shoes, owners of a patent pending therapeutic shoe that is expected to marketed towards individuals suffering from foot and leg related ailments.
Formerly, Bitcoin Collect was known as SolPower, but changed its name in March as it pivoted to align its fortunes in not one, but two fast growing sectors, as it became a bitcoin billing platform provider for the medical marijuana industry. About the exit former CEO, Charles Nienstedt (who is being replaced by Dr. Richard Koenig) explained, “With so much scrutiny from the federal government, banks, public markets and sanctioned governing agencies, we would have been doing the shareholders a disservice by continuing that business model as a public entity. It became very clear that it would have taken much longer and cost much more money than originally anticipated.”