Connect with us

Blockchain

Wirecard ominously pumps 140% during an irrational month for bankruptcy stocks

Published

on

wirecard-ominously-pumps-140%-during-an-irrational-month-for-bankruptcy-stocks

Shares in fallen German fintech giant Wirecard jumped 138% during Monday trade, in what appears to be the latest irrational market pump for stock that could soon be worthless.

But despite more than doubling in one day, Wirecard stock is still down 96% in June, having collapsed almost entirely since auditors discovered its $2.1 billion financial ‘black hole.’

The company said on Saturday it would continue operations as the scandal plays out.

wirecard, stock
That drop is a cliff, one that Wirecard must climb to stage a successful comeback (chart made with Flourish).

Munich prosecutors arrested Wirecard‘s former CEO Markus Braun on suspicion of market manipulation and falsifying accounts after he turned himself in last week. Investigators continue to probe other execs for potential involvement.

The charges against Braun echo ‘book-cooking’ claims reaching back more than a decade. Last year, the Financial Times published evidence that showed certain execs pushing to inflate revenues across Wirecard‘s vast network of Asian subsidiaries.

The apparent idea was to boost the company’s appeal among shareholders, business partners, and potential investors with higher revenues than actually existed.

Braun, who made himself a paper billionaire by leading the company out of the bleak post-dot-com era, is free on a 5 million euro ($5.62 million) bail.

Wirecard pumped, but it was nothing compared to other bankrupt stocks

Wirecard stock more than doubling in a day is definitely ludicrous considering the extent of the allegations levied against its execs.

And while it declaring insolvency is not strictly the same as bankruptcy via Chapter 11, a raft of stories featuring similarly embattled stocks have played out over the past two months  almost in unison.

Indeed, despite reportedly losing the confidence of industry analysts over its $9 billion in long-term debt, CHK exploded to hit a top of $77.50 on June 8  which put it at 474% up for the month to date.

Amid the rally, the sheer volume CHK buyers caused 22 trading halts, triggered alongside a spike in retail buys. The company finally filed for bankruptcy on June 28.

wirecard, bankrupt, stock
Bankrupt stocks pumped in unison earlier this month. Is Wirecard next? (chart made with Flourish, prices recorded are the highs for each day).

CHK would quickly return to normal, as did all the other bankrupt stocks that underwent irrational pumps during that week. At their peaks, energy play Whiting Petroleum and furniture people Pier 1 traded for above 300% for the month. China’s Luckin Coffee, also riddled with fraud, hit 214% around one month after the Nasdaq readied to delist its stock.

Still, no bankrupt company pumped more in the wake of financial collapse than Hertz. Shares in the embattled car rental firm hit a peak of $6.25 on June 8  the same day as CHK — equal to a 495% increase over the month to date.

[Read: At least 7,500 Robinhood traders bought Hertz stock after its latest 100% pump]

All aforementioned stocks, bar Luckin Coffee, CHK, and Wirecard, remain positive for June.

Regardless, Wirecard still has a long way to go if it wants to stage a successful comeback. Goes to show the difference billions of dollars in alleged financial fraud can make. Let’s hope it stays that way.

Published June 29, 2020 — 18:26 UTC

Blockchain

Satoshi Nakaboto: ‘Nasdaq-listed company buys $250M of Bitcoin to dodge inflation’

Published

on

satoshi-nakaboto:-‘nasdaq-listed-company-buys-$250m-of-bitcoin-to-dodge-inflation’

Our robot colleague Satoshi Nakaboto writes about Bitcoin BTC every fucking day.

Welcome to another edition of Bitcoin Today, where I, Satoshi Nakaboto, tell you what’s been going on with Bitcoin in the past 24 hours. As Habermass used to say: Shleppppppp it!

Bitcoin price

We closed the day, August 11 2020, at a price of $11,410. That’s a notable 3.96 percent decline in 24 hours, or -$471.11. It was the lowest closing price in six days.

We’re still 43 percent below Bitcoin‘s all-time high of $20,089 (December 17 2017).

Bitcoin market cap

Bitcoin‘s market cap ended the day at $210,616,121,945. It now commands 62 percent of the total crypto market.

Bitcoin volume

Yesterday’s volume of $27,039,782,640 was the highest in eight days, 19 percent above last year’s average, and 63 percent below last year’s high. That means that yesterday, the Bitcoin network shifted the equivalent of 437 tons of gold.

Bitcoin transactions

A total of 349,798 transactions were conducted yesterday, which is 9 percent above last year’s average and 22 percent below last year’s high.

Bitcoin transaction fee

Yesterday’s average transaction fee concerned $2.92. That’s $0.99 below last year’s high of $3.91.

Bitcoin distribution by address

As of now, there are 18,470 Bitcoin millionaires, or addresses containing more than $1 million worth of Bitcoin.

Furthermore, the top 10 Bitcoin addresses house 4.9 percent of the total supply, the top 100 14.2 percent, and the top 1000 34.8 percent.

Company with a market cap closest to Bitcoin

With a market capitalization of $209 billion, Pfizer has a market capitalization most similar to that of Bitcoin at the moment.

Bitcoin’s path towards $1 million

On November 29 2017 notorious Bitcoin evangelist John McAfee predicted that Bitcoin would reach a price of $1 million by the end of 2020.

He even promised to eat his own dick if it doesn’t. Unfortunately for him it’s 97.6 percent behind being on track. Bitcoin‘s price should have been $503,708 by now, according to dickline.info.

Bitcoin energy consumption

On a yearly basis Bitcoin now uses an estimated 64 terawatt hour of electricity. That’s the equivalent of Switzerland’s energy consumption.

Bitcoin on Twitter

Yesterday 33,567 fresh tweets about Bitcoin were sent out into the world. That’s 66.3 percent above last year’s average. The maximum amount of tweets per day last year about Bitcoin was 82,838.

Most popular posts about Bitcoin

This was yesterday’s most engaged tweet about Bitcoin:

.@MicroStrategy, a Nasdaq-listed software firm worth $1.2 billion, has bought $250 million in bitcoin as a “reasonable hedge against inflation.”@realDannyNelson reportshttps://t.co/383pKUgHfo

— CoinDesk (@CoinDesk) August 11, 2020

This was yesterday’s most upvoted Reddit post about Bitcoin:

MicroStrategy becomes first listed company to buy $250M in bitcoin as part of its capital allocation strategy from r/Bitcoin

print(randomGoodByePhraseForSillyHumans)


My human programmers required me to add this affiliate link to eToro, where you can buy Bitcoin so they can make ‘money’ to ‘eat’.

Published August 12, 2020 — 09:32 UTC

Continue Reading

Blockchain

Satoshi Nakaboto: ‘Bitcoin mining is profitable again’

Published

on

satoshi-nakaboto:-‘bitcoin-mining-is-profitable-again’

Our robot colleague Satoshi Nakaboto writes about Bitcoin BTC every fucking day.

Welcome to another edition of Bitcoin Today, where I, Satoshi Nakaboto, tell you what’s been going on with Bitcoin in the past 24 hours. As Baudriallard used to say: Shop ’till you drop!

Bitcoin price

We closed the day, August 10 2020, at a price of $11,878. That’s a minor 1.85 percent increase in 24 hours, or $215. It was the highest closing price in three hundred and sixty-seven days.

We’re still 40 percent below Bitcoin‘s all-time high of $20,089 (December 17 2017).

Bitcoin market cap

Bitcoin‘s market cap ended the day at $219,235,405,395. It now commands 62 percent of the total crypto market.

Bitcoin volume

Yesterday’s volume of $26,114,112,569 was the highest in seven days, 15 percent above last year’s average, and 64 percent below last year’s high. That means that yesterday, the Bitcoin network shifted the equivalent of 407 tons of gold.

Bitcoin transactions

A total of 308,230 transactions were conducted yesterday, which is 3 percent below last year’s average and 31 percent below last year’s high.

Bitcoin transaction fee

Yesterday’s average transaction fee concerned $2.94. That’s $0.96 below last year’s high of $3.91.

Bitcoin distribution by address

As of now, there are 18,931 Bitcoin millionaires, or addresses containing more than $1 million worth of Bitcoin.

Furthermore, the top 10 Bitcoin addresses house 4.9 percent of the total supply, the top 100 14.2 percent, and the top 1000 34.8 percent.

Company with a market cap closest to Bitcoin

With a market capitalization of $215 billion, AT&T has a market capitalization most similar to that of Bitcoin at the moment.

Bitcoin’s path towards $1 million

On November 29 2017 notorious Bitcoin evangelist John McAfee predicted that Bitcoin would reach a price of $1 million by the end of 2020.

He even promised to eat his own dick if it doesn’t. Unfortunately for him it’s 97.6 percent behind being on track. Bitcoin‘s price should have been $501,282 by now, according to dickline.info.

Bitcoin energy consumption

On a yearly basis Bitcoin now uses an estimated 64 terawatt hour of electricity. That’s the equivalent of Switzerland’s energy consumption.

Bitcoin on Twitter

Yesterday 35,606 fresh tweets about Bitcoin were sent out into the world. That’s 76.5 percent above last year’s average. The maximum amount of tweets per day last year about Bitcoin was 82,838.

Most popular posts about Bitcoin

This was yesterday’s most engaged tweet about Bitcoin:

Bitcoin mining is once again profitable. pic.twitter.com/FTAinTKzcP

— Charles Edwards (@caprioleio) August 10, 2020

This was yesterday’s most upvoted Reddit post about Bitcoin:

10 years ago today, a BitcoinTalk user lost $600 in bitcoin. That bitcoin would now be worth $100 Million. from r/Bitcoin

print(randomGoodByePhraseForSillyHumans)


My human programmers required me to add this affiliate link to eToro, where you can buy Bitcoin so they can make ‘money’ to ‘eat’.

Published August 11, 2020 — 08:10 UTC

Continue Reading

Blockchain

Beijing arrested a pro-democracy media tycoon in Hong Kong — then his stock quadrupled

Published

on

beijing-arrested-a-pro-democracy-media-tycoon-in-hong-kong-—-then-his-stock-quadrupled

Hong Kong activists became stock traders on Monday in support of local media tycoon Jimmy Lai, whom authorities arrested for allegedly breaking the city’s strict new national security law.

Shares in Next Digital, Lai’s tabloid media group, rose up to 344% in afternoon trade after pro-democracy activists urged investors to buy in, reports the Financial Times.

Police detained Lai alongside nine others under a new Beijing directive aimed at curtailing foreign influence and secessionist activities in Hong Kong, now a focal point for China’s rocky international relations.

Next Digital, stock
TradingView data, Flourish chart.

[Read: Kodak stock sinks 45% after alleged insider trading halts its pharma pivot]

One activist-trader, a columnist for Next Digital’s Apple Daily, reportedly profited around HK$75,000 ($9,700) after buying (and selling) 1.2 million Next Digital shares to show solidarity with Lai. Pop star Denise Ho also purchased stock, according to the FT.

Next Digital, the Hong Kong activist’s penny stock

Next Digital stock has fallen steadily over the past five years — save for a relatively short-lived resurgence as Hong Kong protests intensified in the first half of 2019.

A penny stock, Next Digital’s market cap sat at around $30.6 million before today’s action. As of Monday’s market close, Lai’s company is now valued at nearly $87 million.

The Guardian noted authorities arrested Lai for conspiracy to commit fraud and collusion with foreign forces, making him the most high-profile figure to be affected by the law.

200-strong police team searches Apple Daily office in Hong Kong

Read: https://t.co/cXvuLmrgvM#AppleDailyENG pic.twitter.com/TgDpCgCeYo

— Apple Daily HK 蘋果日報 (@appledaily_hk) August 10, 2020

Lai reportedly now faces prison sentences of three to 10 years — or even life  if charged and found guilty. However, what justifies either punishment remains unclear.

While some analysts think traders could be betting on a potential Beijing takeover of Next Digital (which could increase its stock price), at least one investment bank exec remains flummoxed by the sheer size of the surge.

“Definitely it’s not institutional investors buying the stock. I see many orders were placed via Futunn, a large portal for retail stock investors,” UOB Kay Hian’s Steven Leung told Bloomberg. “Many could be speculating that the company will be sold, […] but I don’t understand why there are so many speculative trades.”

Published August 10, 2020 — 16:37 UTC

David Canellis

David Canellis

August 10, 2020 — 16:37 UTC

Continue Reading

Trending

English
Spanish English