Undeniable Facts - don't get distracted9 Nov 2023 06:07
Approx 250m QBT shares transacted above 2.5p in October 2023
It's safe to assume that at least 50% of these were Buys; so, approx 125m QBT shares bought higher than 2.5p
(My calculations suggest that a similar number also bought between 2p and 2.5p)
What has changes since more than 10% of the company's shares were bought at a price above 2.5p?
133m new shares were issues - diluting existing shareholders by 10% (e.g. If you paid 2.5p, assuming no change to the value of the company, you share is now worth 2.25p)
The company is better funded - It now has an extra £2m in the bank (less expenses)
The value of Bitcoin has increase significantly since thos paid over 2.5p for a share. The price of Bitcoin has moved from $34k to a staggering $36,600 (That''s a +6% increase in 2 weeks)
And, we found a more about QBT from their CEO:
- We know that they believe the £2m placing should see them through t revenue
- We know that QBT are have the resource and intent to set-up a cloud infrastructure, probably in North America, whic will allow them to deploy their SAAS model to customers for Method A and/or Method B,
And one final comment which is not quite as FACTUAL, but is pretty much understood to be the case: The only reason the share price went sub 2p was because the majority of the 133m shares issued in the placing effectiely increased the supply of shares in the market. Most will have been sold for an instant profit creating downward pressure on the SP. That process is almost certainly complete now.
Everything points to a retest of 3-4p in the coming hours, days or weeks
GLA