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Quantum Blockchain Technologies shares lose their shine

Quantum Blockchain Technologies shares showed an awful lot of promise last year as they perked up with Bitcoin prices.

An announcement alluding to commercial negotiations with potential customers for their SaaS Bitcoin mining solutions raised the prospect of meaningful revenues, which would represent a step change for the company’s future.

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At the time, we questioned whether the shares could retest 3.5p and said it would rely heavily on the price of Bitcoin and if they are able to secure revenue-generating relationships with customers.

Bitcoin has rallied but we have heard nothing of commercial relevance.

Indeed, all investors have learned since this company showed a glimmer of promise last October is they are renegotiating debt terms. 

The lack of news on commercial progress should be a concern for investors. If Quantum’s solutions have the potential to deliver on what they claim they can do for Bitcoin miners in terms of improving mining activities, one would have expected some form of update on how talks with potential customers were going.

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Yet, the company has said nothing through official channels. This leads to the conclusion that either talks have not gained any traction or the company’s communication strategy requires drastic improvement.

The Bitcoin price has dipped in a ‘buy the rumour, sell the fact’ trade on the approval of Bitcoin ETFs. Bitcoin may well recover and retest all-time highs. However, it isn’t easy to see how QBT shares retests 3.5p in the medium-term.

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