After announcing the purchase of bitcoin just three weeks ago, Nextech AR Solutions (CSE: NTAR) is already walking away from the decision. The company this morning announced the sale of its entire holdings in bitcoin following the fall from grace the cryptocurrency has seen over the course of the last week.
The company reportedly sold a total of 130.187 bitcoins, while claiming a profit of $200,000 from the trade. The numbers provided result in a gain of approximately $1,536.25 on each bitcoin acquired by the company.
Despite CEO Evan Gappelberg previously referring to the digital currency as a “long-term store of value and an attractive investment asset with more long-term appreciation potential than holding cash,” the CEO has now seemingly walked back that statement. He justified that sale of this “long term store of value” asset after just three weeks by pointing to a rumour related to “double spend”, whereby some users have reportedly been able to spend the same bitcoin twice following a flaw. Numerous sources have since debunked this rumour however, indicating that it is a misunderstanding of how the currency works.
The reality, is that like most retail shareholders, the recent plunge in valuation for the currency from highs of US$42,000 to today’s low of $28,800 likely shook Gappelberg, whom realized that the digital currency is too volatile presently to be a responsible store of value for a public operator in an unrelated sector.
Nextech AR Solutions last traded at $5.08.
Information for this briefing was found via Sedar and Nextech AR. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.