Bit Brother stock price has moved from bad to worse this year as concerns about the company’s future remains. BETS stock has crashed by more than 70% this year and by more than 99% in the past 12 months. This plunge has brought its total market cap to just $1.34 million, according to SeekingAlpha.

Lags other Bitcoin mining stocks

Bit Brother share price has crashed this year as its traction among day traders has waned. Data compiled by Yahoo Finance shows that the daily volume of Bit Brother stock has crashed in the past few weeks. On Friday, only 644k shares exchanged hands. For the whole of last week, the volume stood at less than 5.5 million.

This is a sharp reversal from what used to happen a few months ago when more than 5 million shares used to change hand in the market as the company became highly popular among day traders. These days, BETS stock is no longer trending in key social media platforms like StockTwits and Reddit. 

This performance is mostly because many day traders have been burned as the stock has crashed from the split-adjusted high of almost $100 to less than $3. Instead, traders have moved to other popular stocks like Asia Broadband and Digital World Acquisition Corporation (DWAC).

Notably, Bit Brother has underperformed other Bitcoin mining stocks like Marathon Digital, Riot Platforms, Hut 8 Mining, and Bitfarms that have surged this year. This performance is likely because it is unclear whether the company is mining Bitcoins. 

Further, there are concerns that the company will get delisted from Nasdaq soon. It received a notice to delist recently because of the recent warrants and offerings. For example, the company filed to raise over $500 million in January, a ridiculous figure considering that the company has a market cap of less than $2 million.

BETS has survived delisting threats in the past by mostly doing reverse splits. This time, however, this will likely not happen since the company’s market cap has fallen very sharply in the past few months such that a reverse split will likely not help.

BETS stock price forecast

Bit Brother stock

Bit Brother shares chart

A lot has happened since I wrote about BETS stock in January. The shares have continued falling while the daily volume has crashed hard in the same period. They have remained below all moving averages.

Therefore, I suspect that the stock will likely continue falling as fears of delisting rise. I see no reason why the stock will not be delisted this time. The only solution is where the stock goes parabolic due to a short squeeze. Such a move will only give it time since the company is in serious trouble.

Alternatives to Bit Brother stock

Bit Brother investors should consider investing in Bitcoin mining stocks that have strong balance sheets and those that have demonstrated that they can survive prolonged winter seasons. Some of the most notable of these companies are Marathon Digital, Riot Platforms, Hut 8 Mining, and Bitfarms.

These companies are expected to benefit now that Bitcoin is in a strong bull run. It jumped to a high of $52,000, which was much higher than last year’s low of near $20,000. In most cases, these socks jump when Bitcoin is in an uptrend and I suspect that it will retest the important resistance at $67,000.

These firms have also invested their funds to expand their mining capacity in anticipation of halving, which will lead to lower mining rewards. The only way that these firms will benefit is when the price rises after halving, which will happen in April. Bit Brother does not have this capacity.

By Crispus Kanyaru

With a keen eye for market trends and a knack for translating complex financial concepts into engaging narratives, Crispus has established himself as a trusted voice in the world of finance. His work has graced the pages of esteemed publications like Benzinga, Forbes, Invezz, and Banklesstimes, reaching a diverse audience eager to navigate the ever-evolving financial landscape. Crispus's journey began with a deep curiosity about the forces shaping the global economy. This natural inquisitiveness led them to pursue a degree in finance and CPIA, equipping them with a solid foundation in financial theory and analysis. But Crispus knew that knowledge alone wasn't enough. He craved to bridge the gap between dry data and real-world experiences, to make finance accessible and relatable to everyone.

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