Global Blockchain Mining Ord (CNSX:FORK) is yet to receive the response it had hoped for, even on reiterating its intentions to become a powerhouse when it comes to Bitcoin mining. The stock remains subdued in the market, after a steep decline from highs of $0.080 a share.
The stock is currently trading in a range after a 50% pullback. Until the company serves the market with groundbreaking catalysts, the stock look set to continue trading in a range while at risk of edging lower given the underlying long-term bear run.
For the stock to be considered a pullback play after the steep pullback, it needs to rise and stabilize above the $0.05 mark, which appears to be the immediate support level. On the downside, a breach followed by a close below the $0.04 mark could open the door for the stock to continue edging lower after recent weeks consolidation.
A closer look at the recent price action activity, it goes without saying that Global Blockchain Mining is trading in a precarious position and in need of a new catalyst, to avert a further slide in the stock.
Global Blockchain Mining Business Overview
Global Blockchain Mining casts itself as a technology company engaged in the business mining blue-chip cryptocurrencies through the deployment of hardware and associated infrastructure. The company strives to provide investors with exposure to the cryptocurrency sector when it comes to mining operations.
Global Blockchain Mining is the latest entrant in the burgeoning cryptocurrency space, which explains the subdued trading activity in the stock. However, the company boasts of a vast portfolio of mining equipment that it can make good use and generate substantial revenues as well as shareholders value in the cryptocurrency space.
Currently, Global Blockchain Mining owns 9,666 Bitcoin mining rigs of which only 1,040 are currently in operations. The company has also confirmed that it is in the process of installing an additional 3,960 Bitcoin Mining Rigs as it looks to ramp up its mining operations.
The company intends to purchase an additional 10,000 Bitcoin Mining rigs that will take its mining operations to a total capacity of 20,666 mining rigs.
In addition to the Bitcoin mining operations, the company also owns a 25% stake in Distributed Consensus Platform. The company is currently working on a blockchain software that will be used to power devices so that they can also be used for cryptocurrency mining operations as well.
The platform once unveiled will allow anyone to connect their devices, be it mobile phones or gaming consoles so that their processing power can be leveraged for mining operations.
A lack of substantial news that investors can use to gauge the company’s long-term prospects is another reason, why investors are yet to take a keen interest in the company. Global Blockchain Mining is fresh from unveiling a new website which it plans to use, to display information about business activities as well as current operations and plans.
“There is a sizeable niche of investors who desire the relatively straightforward nature of cryptocurrency mining, and how it is similar to investing in utilities or resources. Now that FORK is listed on OTC and CSE, we’re pleased to have the website and slide deck publicly available for everyone to become familiar with what FORK does,” said Shidan Gouran – President and CEO.
Until the company makes good use of the website and show how it intends to differentiate itself from the rest of the competition, the stock is likely to continue trading under pressure in the market.
What Next For Global Blockchain Mining
It does not come as a surprise that Global Blockchain Mining remains under pressure in the market. The company is yet to make an impact as a cryptocurrency mining company, despite the vast portfolio of mining equipment.
As it stands, the company will have to achieve critical milestones especially on the installation of the Bitcoin mining rigs and mining operations for investors to take a keen interest in the stock. Until then, the stock is likely to continue trading in a downtrend or a range given the uncertainty surrounding the company’s long-term plans.
For investors looking to gain some exposure in the cryptocurrency space, Global Blockchain Mining may not be a perfect fit for now, as it is still putting its house in order. That said, it might be wise to maintain a cautious approach until the company launches its cryptocurrency mining operations as the same will help shed more on light on its growth prospects.
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Disclosure: We have no position in FORK and have not been compensated for this article.