Book Online or Call 1-855-SAUSALITO

Sign In  |  Register  |  About Sausalito  |  Contact Us

Sausalito, CA
September 01, 2020 1:41pm
7-Day Forecast | Traffic
  • Search Hotels in Sausalito

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Bit Brother: What is the future of BETS stock price?

By: Invezz
bitcoin mining

Bit Brother (NASDAQ: BETS) stock price has been in a freefall even as its popularity among day traders has risen. While the shares jumped by 13% on Monday, they remain near their record low. They were trading at $0.0088 on Monday, giving it a market cap of over $5.3 million. 

Bit Brother

BETS stock price chart

Bit Brother share price has been a major underperformer as concerns about the company have remained. For starters, Bit Brothers is a Chinese company focused on distributing specialty tea.

Recently, however, the company has changed its strategy to focus on Bitcoin mining, an industry now dominated by giants like Marathon Digital, Riot Platforms, Bitfarms, and Cipher Mining.

To achieve its goal, the company has acquired several machines in the past few months. In December, it signed a deal with Cruxforce as it seeks for additional mining farms with a maximum power supply of 40MW. It also acquired 3300 units of S19 miners.

Bitcoin mining is a difficult business to be in as evidenced by the financial results of big companies like Riot Platforms and Marathon. While these companies mine thousands of coins, they have not achieved consistent profitability. Some, like Argo Blockchain, have come close to bankruptcy.

This is partly because Bitcoin is a boom-and-burst industry. For example, Bitcoin price surged to $67,000 in 2021 and then plunged to below $15,000 in 2022. It has now rebounded to over $43,000.

Further, it is an industry that sees a lot of depreciation. In most cases, Bitcoin mining machines last for only a few months or years. This situation has worsened now that mining difficulty has gotten difficult. 

Meanwhile, Bit Brother’s finances are not all that good, which explains why it has continued to dilute its shareholders. In December, it raised $12 million through stock warrant offering. Before that, it raised $5 million in October through a registered direct offering. This raising came after it raised $7.1 million.

Therefore, all these issues mean that it is difficult for Bit Brother stock price to recover any time soon. Besides, the company will soon need to split its stock again to meet Nasdaq’s listing criteria.

The post Bit Brother: What is the future of BETS stock price? appeared first on Invezz

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Photos copyright by Jay Graham Photographer
Copyright © 2010-2020 Sausalito.com & California Media Partners, LLC. All rights reserved.