In early trading Tuesday morning, the Quantum Blockchain Technologies (LSE: QBT) share price spiked 25% to 2.7p. At the time of writing, the shares are back a bit to 2.5p. But that’s still a gain of 15% on the day so far.
I note that the bid/ask spread is around 2.4p to 2.6p, so investors need an additional 8% price rise to break even (on top of trading charges and stamp duty). That’s a larger cost investors typically have to swallow when we invest in penny shares.
I guess it’s small compared to the ups and downs of a stock like this, though. Over the past 12 months up until yesterday’s closing price, we’re looking at a 900% gain for the Quantum Blockchain share price. That’s perhaps not quite as impressive as the Argo Blockchain share price performance over the same period, up 1,700%.
But it does show the same kind of pattern. The shares climbed early in 2021, and since March they’ve started to fall back. But in the past couple of weeks, Quantum Blockchain has been rising again. So what does the company do? According to its website, it’s pursuing “a new and disruptive approach to blockchain technology“.
Quantum Blockchain technology
To be more specific, the company says: “Our investment programme is focused on selecting the most innovative and out-of-the-box start-ups in the Blockchain and cryptocurrencies sector, with whom we will work alongside to develop exciting synergies.”
The most recent news, on 30 September, involved the filing of “the company’s first breakthrough patent application on Bitcoin mining algorithm optimisation“. The announcement covers the technical details, but, in short, the development apparently makes for “a faster and more efficient mining process.”
Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of investment advice. Bitcoin and other cryptocurrencies are highly speculative and volatile assets, which carry several risks, including the total loss of any monies invested. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
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