Following a general decline of 11.7% yesterday, BitNile Holdings, Inc. (NYSEAMERICAN: NILE) saw explosive growth in the after-hours. In a mere 20 minutes following the close of trade for the day, NILE jumped up by 32.1%. As the penny stock continues to exchange hands in the after-hours, NILE stabilized at a 17% growth. As social media chatter continues to build up a frenzy around the stock, traders are increasingly looking to identify drivers behind this market response.
Tweet by BitNile CEO & MULN Ownership
The timing of the NILE growth spurt strongly coincides with a tweet put up yesterday, addressing the financial market. A revelation, regarding BitNile’s investment in Mullen Automotive Inc (NASDAQ: MULN), was made, while still a private limited entity. SEC filing of schedule 13G/A further confirms a 9.33% stake in the company, indicating significant interest in the company. The news spurred the market into action given MULN’s almost legendary performance, near doubling in price during the prior weeks. Evidently, BitNile hit a jackpot with the investment, whilst positioning itself to the growing exposure of MULN.
Capacity Enhancement of NILE’s Blockchain Facilities
On Monday, the company announced the launch of a new division, focusing on the realm of blockchain and cryptocurrency mining. As per reports, BitNile’s strategic aim would be to provide solutions, whilst enhancing market share in this emerging domain. The company stands to see the substantial benefit, by capitalizing on its strategic partnerships in the industry, as with Bitmain Technologies. The growth potential of the initiative is substantial, with BitNile announcing its intentions to serve various players and sectors. Potential clients would include startups, as well as industrial units looking to integrate blockchain functions or cryptocurrency mining into operations. The news is further paired with an announcement of enhanced capacity at BitNile’s Michigan Data Center. The company announced plans to up total power to 300MW, thereby increasing blockchain mining potential.
Conclusion
NILE has seen explosive growth in the after-hours, following a tweet by the company’s CEO. Revelations of a 9.33% stake in the high-growth MULN have evidently spurred the market into positive action. Furthermore, BitNile’s enhancement of its blockchain mining, through an increase in capacity further drives optimism regarding NILE. There is a clear indication that further growth is yet to see sustainable realization into the long term.
