This Crypto Stock Is a Laggard, Climbing Just 200% in DecemberBy
Shares of Digital Power Corp. have almost tripled in December. In the world of crypto stocks, it’s a real laggard.
UBI Blockchain Internet Ltd. has increased almost eight-fold in the past two weeks, while Crypto Co. climbed more than 2,400 percent. Interest in these companies, among the few publicly traded entities that say they’re targeting digital currencies, has surged along with the value of bitcoin and other crypto-money. The S&P 500 has returned a mere 0.2 percent in that span.
Digital Power said Wednesday that it struck a deal with closely held IMG Networks to create a network of more than 10,000 mining machines. It plans to harvest the top 10 virtual coins, including bitcoin, ether and bitcoin cash.
The run-up has made the three penny stocks worth a combined $12.4 billion, which is more than the individual market values of 125 companies in the S&P 500. It has also made billionaires of the founders of Crypto and UBI -- at least on paper.
The gains may not be sustainable. Crypto, which invests in and trades digital assets, and develops source code for managing them, sold shares to accredited investors at $7 apiece, a 97 percent discount to Tuesday’s close, according to a regulatory filing Wednesday.
The stock surge drew the attention of market operator OTC Markets Group, which added a skull-and-crossbones icon next to Crypto’s stock symbol last week to signal to investors that they should be cautious before buying the stock.
Crypto shares more than doubled to $508.10 since the $7 share sale was disclosed.