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BitNile Metaverse (BNMV) Stock Rallied 33% Despite Lack of News

Analyst Team trader
Updated 15 Jun 2023

The BitNile Metaverse Inc (NASDAQ: BNMV) stock price rallied 33% despite the lack of recent news releases. Over 4.02 million BitNile shares had changed hands at the time of writing, indicating that investor interest in the company’s shares was relatively high.


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The lack of news releases forces us to look at the company’s previous releases to understand whether they could be the triggers behind the current rally. The last significant news from BitNile was the filing of an 8-K report with the SEC revealing that it had signed a purchase agreement with Arena Business Results, LLC.

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The purchase agreement, also known as the “ELOC Purchase Agreement”, stipulates that Arena Business Results, LLC, can purchase up to an aggregate of $100,000,000 of shares of our common stock over the 36-month term of the ELOC Purchase Agreement.  

The agreement with Arena Business could be lucrative for BitNile, given its market capitalisation of a mere $2.11 million. Yet, Arena has agreed to purchase BitNile stock worth up to $100 million, which is 50 times its current market cap and could trigger a more significant rally. 

Other crucial releases from BitNile include the company regaining compliance with the Nasdaq Capital Market’s listing rule of a minimum trading price of $1.00 for all companies listed on the exchange. 

BitNile regained compliance with the Nasdaq’s listing rules by conducting a 1-for-30 reverse stock split that significantly reduced the number of its outstanding shares from 100 million to 3,333,333 shares.

The company could increase its outstanding shares if Arena Business executes its purchase agreement and decides to buy shares worth the millions stipulated in the deal, forcing it to issue new shares and expand its share count.  

Meanwhile, it remains to be seen whether BitNile’s share price can keep rising despite the lack of relevant fundamental triggers apart from those discussed above. 

*This is not investment advice. 

BitNile stock price. 

The BitNile stock price rallied 33.08% to trade at $1.73, from Wednesday’s closing price of $1.30.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.