Shares of Mode Global Holdings PLC (LON: MODE) fell 8.12% today despite the lack of major releases from the UK fintech group that recently reported record-breaking figures for December based on its Bitcoin investments.
The fintech company used up to 10% of its IPO proceeds to purchase Bitcoin in October 2020 and benefited from the cryptocurrency’s massive rally in December being up 100% on its position as of last week.
Mode Global also reported that trading volumes in December were up 1500%, while user numbers were up 500% as compared to August figures. The company started trading on London’s AIM on October 5, 2020 following an IPO that raised $10 million.
The company also revealed that user numbers were up 40% in the first few days of January resulting in a major rally that ended on Friday having formed a parabolic shape that is typically followed by a significant selloff.
The fact that there were no negative fundamental triggers behind the 2-day selloff that started on Friday indicates that buyers are taking profits on their positions following the rally that started on January 5 after the company’s announcement.
Investors interested in the company may find that the latest downtrend presents an excellent opportunity to create new positions or add to existing ones.*
*This is not investment advice.
Mode share price
Mode Global shares fell 8.12% to trade at 61.10p having fallen from Friday’s closing price of 66.5p.