On January 5, ThreeD Capital (CNSX:IDK) (OTCMKTS:BWSOF), a Toronto-based company, announced that it had created a special purpose division in its 100% owned subsidiary, Blockamoto.io Corp. The division was to be used for engagement with cryptocurrencies, and to no surprise, because of the all of the hype in the CC sector, the announcement caused the stock to reach a new 52-week high and trade up nearly 40%.
Today, however, was different. ThreeD Capital, which specializes in the investment of junior tech, mining, and oil and gas opportunities, made yet another announcement, but the stock didn’t jump this time. As of right now, ThreeD Capital is trading at $0.65, putting the stock down $0.10, or $13.33% on the CNSX exchange.
It will be interesting to see if the stock goes down as much as 20% or if it makes a U-turn.
What Happened?
But what was the announcement? Well, ThreeD Capital announced that it had started a number of purchases in a portfolio strictly of cryptocurrencies. Further, the Canadian company announced that it had made a number of investments in Initial Coin Offerings – there are a lot planned for the next couple of months, such as Medicalchain – as well as investments in leading blockchain initiatives and cryptocurrency miners.
What I don’t understand about today’s decline is that in the announcement on January 5th, ThreeD Capital announced that it would be using the division to invest in ICO’s. At the time, investors seemed pleased with that, but when the company actually came forward and said it went through with the plans, the stock dropped pretty significantly.
Plus, there’s so much hype surrounding Bitcoin and the cryptocurrency sector in general, so one would think that this announcement would have caused the company to see green, instead of red. Not to mention there have been a number of companies announcing its involvement with the blockchain sector, like Recon Technology (NASDAQ:RCON) who is currently up more than 100% after announcing its move into blockchain, and yet, ThreeD Capital is paying the price for its investments in blockchain initiatives, rather than reaping the benefits.
That being said, things might turn around. Perhaps investors were a little taken back by the announcement, or maybe it’s just the circumstances of today’s trading session.
Featured Image: Depositphotos/© Jut_13
