Shares of Quantum Blockchain Technologies PLC (LON: QBT) are down 66.8% from their early May highs of 3.10p after rebranding into a crypto-focused company from a real estate company.
The company saw a massive opportunity in the crypto markets as more people started to embrace cryptocurrencies driven by Bitcoin’s impressive rally to $64,000.
Quantum Blockchain, previously known as Clear Leisure, rebranded into a crypto firm and announced hiring an unnamed crypto mining optimisation expert earlier this month to help it develop more energy-efficient crypto mining processes.
The company’s announcement couldn’t have come at a better time, given that regulators are now focusing on the high amounts of energy used in crypto mining activities.
China recently announced a massive crackdown on cryptocurrency mining with the move extending to cryptocurrency trading and speculation after China’s government summoned the top bank CEOs to remind them of the rules against crypto transactions.
Governments in western countries have also raised concerns about the high amounts of electricity used by Bitcoin miners, with crypto miners taking measures towards using greener energy sources.
The cryptocurrency industry is going through turbulent times as many fear that other governments may take measures to stifle the adoption of crypto payments as they introduce Central Bank-issued Digital Currencies (CBDC).
Quantum Blockchain hopes to capitalise on the need for more energy-efficient crypto mining methods after it announced a very tight deadline on its efforts to develop new proprietary technologies with its unnamed crypto mining optimisation expert.
The company’s legacy real estate business is currently in several legal cases in Italy, with claims worth over €30 million. Still, these cases are likely to drag on, given the slow-moving nature of Italy’s legal system.
*This is not investment advice.
Quantum Blockchain share price.
Quantum Blockchain shares are down 66.77% from their May high of 3.10p to their current price of 1.03p. Can they recover and rally higher?