The Quantum Blockchain Technologies PLC (LON: QBT) share price plunged 24.6% after releasing an update regarding the progress made by its research and development (R&D) team working on its Bitcoin mining chips and technology.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The company revealed that one of its Bitcoin mining algorithms could speed up the mining speeds of existing ASIC Bitcoin miners by up to 30% by overriding the native software, which the mining machine was equipped with by its manufacturer.
QBT reminded investors that it was still working on its advanced quantum computing chips that could significantly transform the Bitcoin mining space but that it would take several years for the technology to be thoroughly tested due to the lack of quantum computing machines with enough cubits to run its programs.
Today’s announcement came at the wrong time, as the crypto world is reeling from the collapse of FTX, with the sector suffering from negative investor sentiment. Bitcoin is trading at $16,800 after touching the $15,000 level following the FTX collapse and the ensuing market contagion.
Investors reacted harshly to QBT’s positive announcement as its share plunged lower despite the positive nature of today’s news. Furthermore, the company announced that it had appointed Dr Rita Pizzi as its Chief Research Officer (CRO).
The appointment left some wondering whether she could be the mysterious cryptography expert working with Quantum Blockchain over the past 18 months, given her experience as a former senior researcher and professor of Artificial Intelligence and Data Analysis at Milan University’s Department of Computer Science.
Quantum Blockchain Technologies further noted that it had a shortcut to generating revenues by licensing its proprietary machine-learning algorithms to Bitcoin miners, who can use it to speed up the mining process and mine more Bitcoin.
The algorithm known as ‘Method B’ improves the Bitcoin mining speed using the same power it used when operating with the manufacturer’s software. Herefore, it uses the same costs to mine more Bitcoin resulting in higher profits for miners.
However, the market was in no mood for the excellent news, as evidenced by the decline in QBT shares.
*This is not investment advice.
Quantum blockchain (QBT) share price.
The Quantum Blockchain share price plunged 24.64% to trade at 0.954p, falling from Monday’s closing price of 1.266p.