“We will be listing on NASDAQ” are the words almost every investor in bitcoin miners wants to hear at some point during the course of the period they’re invested in. It’s the holy grail when it comes to both attention and liquidity for the companies stock but it might be becoming a bit of a problem.
There is absolutely no doubting the fact that if a miner were able to list on NASDAQ then they and their investors would benefit hugely from the exposure. It’s why so many investors push for it. However, when companies are so close to being listed on such an exchange, it might be possible that it has a negative effect and it really wouldn’t surprise me if it was the reason for some of the downturn in the stock market in recent weeks.
Think about it like this, when a company like HUT or Argo Blockchain were trading a relatively lower amounts and there investor base was full of people across the world that fundamentally believed in the future of the company then the investor base could be considered strong, helpful and constructive in many ways. I think of the times where people on twitter have actively promoted companies in a positive way as if they were the businesses PR team.
Yet when that same business starts to gain traction like we have seen in recent months, the new investors who got in under different pretences and with different expectations now require something big to make them the money that the previous patient (emphasis on patient here) was able to achieve.
NASDAQ has very much become that thing. It’s the battle cry of the shareholder who want’s to get in and out quickly. It’s the song the investor sings when they don’t understand the company they put money into. Why does this matter even though its a perfectly fair strategy? Well you get results like we have been seeing recently. No knowledge of the company mixed with a strong desire for an event to occur that can only occur if the stock remains high creates a mixture of carnage so strong that it drives the stock lower.
If the small miners (by market cap that is) had the same investor base they had in December 2020 as they do now, would companies like HUT, Argo and HIVE have fallen as much as they have? A lot of this downward pressure in recent days is caused by fear. How can you be fearful of bitcoin going from 62 to 55 when you invested in the company at 10.
Don’t get me wrong, I still want NASDAQ to be at the forefront of businesses minds as it’s ultimately a good thing but investors must also understand the significant fall in the quality of investor that the increased exposure comes with.
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