Skip to content

The Quantum Blockchain (QBT) Share Price Soared 32.9%. Is It a Buy?

Simon Mugo trader
Updated 23 May 2022

Trade Quantum Blockchain Shares Your capital is at risk

Key points:

  • Quantum Blockchain shares soared 32.9% on the latest progress update.
  • The company has made significant strides in developing a bitcoin mining chip.
  • Investors were reminded of the firm’s significant potential if successful.

The Quantum Blockchain Technologies PLC (LON: QBT) share price soared 32.9% after announcing that it had started live tests of its bitcoin mining technologies, having moved from simulation testing.

Also read: Five Best Starter Stocks For Beginners.

The company is looking to gather real-time data from live testing using the standard version of its SHA-256 algorithm. The firm has already deployed two algorithms that govern the SHA-256 computation based on the massive amounts of data collected by its R&D team in the past year.

The latest milestone is the final stage of work done by one of the company’s two machine learning teams over the past year. The company's third team has delivered encouraging results despite starting work just a few months ago.

Quantum Blockchain is working on two mining approaches with both probabilistic elements that could lead to significantly improved mining results. The second approach requires a special ASIC chip that could lead to drastically improved mining results compared to the current commercial ASIC chips that use deterministic approaches.

The company’s investment in quantum computing capabilities seems to be paying off as it expects to file for a patent application once they have a theoretical confirmation of the technology.

Quantum blockchain is set up to become a producer of Bitcoin mining chips that are highly efficient and represent a significant change for the entire industry if successful.

Francesco Gardin, QBT’s Executive Chairman and CEO, commented: “QBT is addressing an opportunity which represents a step-change for the Bitcoin mining industry, and where our competitors have invested several years, hundreds of researchers and engineers, as well as tens of millions of pounds. After just one year, QBT is already in a position to start its knowledge-based Bitcoin mining, using what we believe to be a unique and novel approach. The results of our Bitcoin mining endeavours during the next few months will determine the real value of our approach.”

Adding:

“At the same time, we continue to improve the chip design of ASIC based traditional mining by optimising the SHA-256 algorithm and its silicon implementation. Our Quantum Computing team has now successfully achieved its first correct quantum computation of a reduced size version SHA-256 and is now scaling up to the full SHA-256.”

QBT has a current market capitalisation of just over 18 million. Hence, it could be an excellent investment if the firm is successful, given that many of its peers are valued over 10X more.

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

Quantum blockchain share price.

Quantum blockchain share price 23-05-2022
Source: IG

The Quantum Blockchain share price soared 32.9% to trade at 2.46p, rising from Friday’s closing price of 1.85p.

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