Quantum Blockchain Technologies shares have resumed their rally after management jumped on the opportunity to raise £2m at 1.5p following a strong rally culminating in 52-week intraday highs around 3.5p.
The company is developing Bitcoin mining technologies that enhance the efficiency of Bitcoin mining while reducing the amount of electricity used to mine Bitcoin.
Quantum Blockchain Technologies rally coincides with resurgent interest in Bitcoin amid regulatory approvals for crypto ETFs in the US.
The company’s success hinges on its ability to commercialise two formats of their software known as Method A and Method B.
Each Method possesses individual attributes, but essentially, the software can be applied to existing Bitcoin mining rigs to enhance their mining activities.
Representing a clear path to revenue generation, Quantum Blockchain Technologies’ offering is available as a SaaS (Software as a Service) client-server cloud application that can be uploaded to mining rigs.
The SaaS offering overcomes issues with the company not wanting sharing source code with its partners and should open up the door to wider adoption of the technology.
Investors will await news of commercial agreements to gauge long-term value creation capabilities of the technology.
Whether Quantum Blockchain Technologies can retest will depend on additional news related to engagement with potential customers, and the performance of Bitcoin.
Should the Bitcoin price continue towards $50,000, expect Quantum Blockchain Technologies shares to jump on its tailcoats. It goes without saying interest in the stock will fall with a drop in Bitcoin.
Quantum Blockchain Technologies is a high-risk play but a solid option for a prolonged rally in Bitcoin.
