From a $0.30 financing to a $0.90 listing to $2.25 four days later?

The comparisons between HIVE Blockchain (HIVE.V) and Lithium-X (LIX.V) don’t stop at the stock chart. Both companies have the same team behind them, and they’re both in sectors that were going crazy when the debuted. Both made big acquisitions immediately upon going public.

And they both leveled off a bit after a ridiculous opening run.

HIVE dropped news into it’s run today, presumably to combat the likelihood of any sort of short seller attack. That news announced the purchasing of a second crypto mining facility in Iceland, and a bought deal financing that will bring $30 million into the company at $1.50 per share.

HIVE is also pleased to announce that it has entered into a legally binding letter of intent dated September 21, 2017, with its 30% shareholder Genesis Mining Ltd. under which the Company and Genesis intend to move forward with the purchase, sale and maintenance of an additional cryptocurrency mining data centre located in Reykjanes, Iceland. HIVE’s cryptocurrency mining capacity or hashpower is expected to grow by over 70% with the Second Data Centre. [..] The Second Data Centre will be acquired from Genesis for consideration of C$5,000,000 and 2,000,000 common shares of the Company, as well as a revision of the monthly fees pursuant to the MSA to support the Second Data Centre.

With the stock touching $2.25 when the news was dropped, it was no surprise to see a bit of selling following the $1.50 PP announcement. That selling continued through Wednesday, bringing HIVE back to $1.89; still up on the day, but a definite sobering from what had been a heavily bought stock since its inception a few days ago.

At the Cambridge House Extraordinary Future conference Wednesday, crypto deals were the belles of the ball, with the upcoming DMG Blockchain receiving most of the love on site. DMG’s plan is comparable to HIVE’s, though while HIVE is acquiring masses of mining capacity for itself, DMG plans to lease masses of mining capacity out to others, in container boxes, generating consistent earnings that aren’t tied to the elastic ups and downs of the currencies themselves.

DMG will be moving into the Aim Explorations (AXN.H:NEX) shell in the weeks ahead.

As DMG isn’t public yet, and HIVE was leveling off, all that money that wants in on crypto apparently needed somewhere to go, with several other public companies in Canada benefiting as a result.

BTL Group (BTL.V) jumped 13% on the day. Netcents Technology (NC.V) ran 16%. Fintech Select (FTEC.V) had a blinder with a 38% leap, and little Calyx Bio-Ventures (CYX.V), the cheapest crypto player on the block with their platform to run a crypto-weed industry commerce set-up, jumped a whopping 140%.

Calyx released no news to start such a run, and when I called the CEO, Roger Forde, he had no idea why someone had decided to park their Ferrari in his garage.

“All I can imagine is, we’re in a hot sector and we’re inexpensive,” he said, adding, “But it was certainly a surprise to us to see such a late day move.”

Late day it was. The stock didn’t budge off $0.05 until 1PM eastern, when it suddenly started to get vacuumed up by what appears to be one buyer. The buying remained consistent, taking down each level of asks until the last five minutes of the day, when the buy rate picked up markedly. All told, 6 million shares traded, of a company that usually trades at a 100k share daily volume.

Forde did tell me his team has been negotiating with a potential hire from the US who would run their crypto side, and that his team is moving their office somewhere they can anchor a crypto mining setup efficiently. But that’s not ‘double your value’ news.

My thinking is, HIVE money is parking while that bought deal plays out, and will be right back in there if it looks like the stock will go back to lifting. For now, smaller players are getting a lift as insurance plays.

And a 140% profit on an insurance pick? That’s not too foul.

— Chris Parry

FULL DISCLOSURE: The author owns stock in HIVE, and Calyx has been an Equity.Guru marketing client previously.



NB: Pursuant to a resolution passed by the directors dated Nov. 27, 2017, Calyx Bio-Ventures Inc. changed its name to Calyx Ventures Inc. effective as at Feb. 5, 2018. The ticker symbol CYX is unchanged.