HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. (OTCMKTS:PRELF) traded lower just days after bitcoin came under pressure after touching all-time highs of $7, 601. The stock was down by 15.50% in Monday’s trading session, after bitcoin shed more than $600 worth of market value.
Goldman Sachs Expectations
HIVE Blockchain Technologies Ltd. (OTCMKTS:PRELF)’s drop from a 52-week high of $3.85 does not come as a surprise. The stock has been falling for the better part of a year before the recent, brief rebound. Over the past two months, the stock has gained more than 70% in market value as it continues to trade in an uptrend.
Monday’s pullback could be because of investors taking profits given that it follows a similar pullback by bitcoin. Analysts at Goldman Sachs, in a research note to investors, say they expect bitcoin to hit new records of $7,941, despite the massive $600 recent pullback.
The largest cryptocurrency hit a record high of $7,601 before briefly retreating. According to Goldman Sachs, a surge to $7,941 would mark the third of five upward waves for the cryptocurrency. Any run to the upside is expected to have a ripple effect on cryptocurrency stocks that have continued to generally trade in parallel.
HIVE Blockchain Technologies Ltd. (OTCMKTS:PRELF) is one of the stocks that has benefited a great deal from the impressive bitcoin rally. Investor confidence in the stock has strengthened in the recent past due to the continued rise in cryptocurrency prices.
The growth-oriented blockchain focused company has already put plans in place to enhance cryptocurrency mining capacity.
Bolstering Mining Capacity
HIVE Blockchain Technologies Ltd. (OTCMKTS:PRELF) has already engaged the services of Genesis Mining Ltd as it looks to construct a new mining facility in Sweden. Once complete, the facility will increase the company’s mining capacity by approximately 175%.
“HIVE is acquiring a facility in a politically stable country with access to excellent infrastructure and complements our existing facilities in Iceland. We will continue to evaluate other opportunities to ensure we provide our shareholders the best exposure to the blockchain and cryptocurrency,” said CEO Harry Pokrandt.
The company has also completed the purchase of additional cryptocurrency mining equipment in Iceland for C$5 million consideration. HIVE Blockchain Technologies Ltd. (OTCMKTS:PRELF) mining capacity is set to increase by over 70% with the addition of the second data center.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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