Q: Quick turn around in this stock, from a Private Placement to potentially tripling the Bitcoin rewards in the purchase of new machines. Volume seems incredible. Normally 8M shares on NasDaq, today 46M. Normally 1.5M shares on TSX, today 6.5M. I assume when high volume and a positive day is almost always a good thing? Maybe a hedge fund or ETF building a position?
5i Research Answer:
Volume certainly was impressive, and the stock (US version) is now up 241% YTD. High volume on a big move up is usually very positive. There are no guarantees, of course, but massive volume on a 37% two-day gain we see as certainly positive. Certainly the move means more than if volume was anemic on the same move up. Average trade size was 1,247 shares, which to us implies a retail investor 'pile on' after institutions financed the company for $60M. We think an institution would have bought on the deal rather than in the market, but it is also possible some players did not get the allotment they wanted and filled their order in the market.