Soon, everyone will be a bitcoin miner
If you want shares of your company to go higher in December 2017, all you have to do is say the magic word: Bitcoin.
You probably haven't heard of Rich Cigars Inc. It's a lightly TOC-traded company that was basically a worthless Florida company that would "distribute, brand and market tobacco products."
No longer, it announced yesterday that it was changing directions into two new lines:
"The acquisition, development and marketing of proprietary patented products that are readily marketable internationally, and at the same time, its entry into the business of cryptocurrency mining by our ownership and operation of multiple cryptocurrency mining machines."
Here's what happened.
That's right, shares rose from 3-cents to a high of $1.05, or a 3500% return before falling back today to a mere 1600% return.
That sounds grandiose but the market cap is now only around $2 million.
Still, it's alchemy to turn a worthless company into two million dollars overnight.
It makes me wonder if it's a viable strategy to simply buy near-worthless shares of companies, call up management and ask them to switch into a Bitcoin mining company. Heck, you can even write the press release for them. And the good news is that it won't cost them any money at all. They can simply use whatever computer they have lying around. Of course, that old Dell laptop won't mine much bitcoin, but the market doesn't care at the moment.
h/t Matt Levine
