Shares of the Future FinTech Group Inc. (FTFT) stock were rising in the current market today on December 30, 2021. FTFT stock price saw an uptrend of 19.67% to reach $1.47 a share at the time of this writing. The stock was gloomy in the previous trading session and went down by 12.77% at closing. Let’s understand the reason behind this bull.
What’s Happening?
Future FinTech Group recently announced that it has established a new blockchain division in order to manage the company’s existing blockchain business sector. This step will help the company in the formulation as well as execution of a strategic growth plan. Investors after hearing this news responded positively to the FTFT stock which led to the increase in per-share price in the current market.
Mr. Zhi Yan will serve as the President of the new division to direct the operations of the blockchain business of the company. The core purpose of the division is to develop, operate and manage the anticipated bitcoin mining farms in the United States and Paraguay. The company previously showed intentions about these farms. Moreover, the division will also coordinate Dubai-based digital currency trading service and crypto asset management business which the company previously announced, through FTFT Capital Investments LLC subsidiary.
FTFT appointed Mr. Kai Xu as the vice president of the new division. He will be responsible for optimizing blockchain computing hash power assets of the company and the development of Metaverse-related business. Mr. Xu previously served as the manager of FT Commercial Group Ltd, a wholly-owned subsidiary of FTFT stock.
Previous News of FTFT stock
On Dec. 17, 2021, FTFT announced that it had entered into a cooperation agreement with APC Service Ltd. The purpose of this agreement is to build a cryptocurrency mining farm by establishing a joint venture in Ohio. In connection with the proposed mining farm, the first phase of the project will be 50MW of processing power. Upon success, the project size will be expanded to 300MW. The 50MW will deploy 12,000 S19 Antminers with 1.3 EH/s of hash power. Both parties have divided this project into six stages and estimated $10 million for each stage. The project upon successful completion will have a positive long-term effect on FTFT stock.
Conclusion
The recent announcement has made FTFT stock green in the premarket. It would be interesting to see how long this trend will persist as the stock market is highly unpredictable. The stock has lost almost 29% year to date.
