Shares of BitGold, which went public on the TSX Venture Exchange yesterday, have soared by as much as 63% to $4.40.
The jump, taking place on a volume of over one million shares thus far, resembles the pop frequently seen following highly anticipated initial public offerings (IPO), only this time it was delayed, and it was not a typical IPO. The startup recently reverse merged with Loma Vista Capital Inc, a shell company traded on the exchange.
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Shares are traded under the symbol XAU. On their first day, they gained 8% to $2.70. After hitting $4.40 earlier, they have retreated back to $4.00. According to a filing, there are 36,619,885 common shares, implying a total valuation of $146 million, making it one of the highest valued companies in the crypto industry.
The startup, which has secured investment from Sprott Asset Management, uses Bitcoin technology to make it easier to transact in gold. There are several startups in the space with such offerings, but BitGold has by far received the greatest backing to date.