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Quantum Blockchain (QBT) Share Price Has Fallen 15% in One Week. Is It a Buy?

Simon Mugo trader
Updated 3 Dec 2021

Quantum Blockchain Technologies PLC (LON: QBT) share price has fallen 15% in the past week. This is despite announcing that it is now focused on developing a 5nm chip for its Bitcoin mining activities instead of a 7nm chip as it had initially announced.

Investors seemed unimpressed with the announcement since QBT shares kept falling, keeping a downtrend that has been in place since the start of November firmly in place.

The company has emerged as a leading player in developing new Bitcoin mining technologies after hiring an anonymous expert and recently filing a patent application for Application-Specific Integrated Circuit (ASIC) chip.

QBT recently announced that it had completed the first phase of developing its proprietary ASIC Bitcoin mining chip, which is the development of a logic gate architecture for use in the final ASIC chip.

The company was ready to start manufacturing the prototype of the chip. In the latest announcement, QBT revealed that it had signed a contract with a global foundry where it could test and manufacture its chip using 5nm manufacturing processes.

Francesco Gardin, Quantum Blockchain’s CEO and Executive Chairman, commented: “Access to the 5nm technology for our ASIC Bitcoin mining chip is, after careful consideration, the natural choice for QBT in 2022. While the 12nm prototype is still an easy and relatively low-cost option, which we may still use for strategic ‘time-to-mine’ testing and early mining, the 5nm ASIC is now definitely our target.

Adding:

“We have quickly identified a major international supplier, which will give us access to the 5nm technology and support our design team, given the very specific features and know-how involved when designing a 5nm ASIC.”

QBT shares have broken below the crucial 2.70p support level and are headed towards the next support at 2.00p. If they reverse course, I would love to buy the shares at 2.00p, or above the 2.70p level.

*This is not investment advice. Always do your due diligence before making investment decisions.

Quantum Blockchain share price.

IG chart of Quantum Blockchain share price 03-12-2021
Source: IG

Despite making significant progress, the Quantum Blockchain share price has fallen 15% in the past week.

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading