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Quantum Blockchain (QBT) Shares Fell 11.4% on FY Losses. Is It a Buy?

Trade Quantum Blockchain Shares Your capital is at risk
Updated 30 Jun 2022

Key points:

  • The Quantum Blockchain shares plunged 11.4% on FY2021 losses.
  • Investors ignored QBT’s multiple positive milestones to focus on losses.
  • So should you buy QBT shares? Read on to find out.

The Quantum Blockchain Technologies PLC (LON: QBT) share price plunged 11.4% after releasing its annual report and financial statements for the year to 31 December 2021. Investors focused on the company’s higher losses while ignoring the significant milestones achieved by the company last year.

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Firstly, the company changed its name from Clear Leisure (a real-estate investment company) to Quantum Blockchain Technologies, attracting many questions from different quarters as to how the company could succeed in the highly-competitive cryptocurrency mining industry.

Also read: The Best UK Tech Stocks To Buy Right Now.

However, the company divided right in and hired a mysterious blockchain expert after rebranding on 6 May 2021. A few months later, in September 2021, the company unveiled its first breakthrough via a patent application for the ASIC UltraBoost chip, which improves the Bitcoin mining process by eliminating redundant computations.

Quantum Blockchain made significant progress in developing Bitcoin algorithm core architectures for an FPGA chip and has already performed initial tests to keep testing costs low. In addition, the company has hired 20 experts that make up its Research & Development (R&D) team, including university professors and experts in machine learning, quantum computing, algorithm optimisation and cryptography.

QBT is currently working on experimental AI techniques that could multiple the computation speed of its FPGA chip several times, reducing the time taken to solve the Bitcoin mining algorithm and making the mining process much faster. Furthermore, the exact process could easily be applied to the ASIC chip if successful.

The above are just a few of the crucial milestones achieved by QBT last year, yet investors chose to focus on its losses, which ballooned to €5,396,000 at the end of 2021 compared to the €1,208,000 loss recorded in 2020.

Quantum Blockchain has also made significant progress this year after receiving £700,00 after the exercise of options to purchase 35 million new ordinary shares and another £350,00 due to the exercise of share purchase options in January, among other crucial milestones.

Still, investors ignored the positive milestones while focusing solely on the firm’s losses. Quantum Blockchain’s current market capitalisation is a mere £18.46 million, yet the company could be worth much more if its technologies reach commercialisation.

QBT shares just hit a long-term support level, and I would buy the shares if the level holds and we get a bounce. However, a break below the level would bring the 1.00p round level into play, and I would be looking to buy at these lower prices.

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

Quantum Blockchain share price.

Quantum Blockchain share price 30-06-2022
Source: IG

The Quantum Blockchain share price crashed 11.42% to trade at 1.55p, falling from Wednesday’s closing price of 1.75p.