(MENAFN- Asia Times) HONG KONG – Several Hong Kong-listed Stocks with blockchain businesses or concepts jumped significantly on the first trading day of the Year of the Ox after Bitcoin hit a new high in the past two days.
On Sunday, Bitcoin reached $49,375 for the first time, almost meeting the forecast made by Nicholas Pelecanos, the head of trading at cryptocurrency firm NEM, who said on January 2 that the cryptocurrency could rise to $50,000 by Valentine's Day.
The recent surge in Bitcoin, together with US-listed Bitcoin miners such as Bit Digital and Riot Blockchain, came after Tesla announced on February 8 that it bought $1.5 billion in Bitcoin and would accept customer payments in the cryptocurrency.
Although Bitcoin declined sharply by $3,000 to $45,926 on Monday, it gradually climbed up back to above $49,000 on Tuesday.
In Hong Kong, stocks with blockchain businesses or concepts also gained support in the Bitcoin frenzy. BC Technology Group rose 15.6% to HK$20.3 on Tuesday. The shares have grown 174% from a year ago.
In the six months ended June 30, 2020, the company's revenue from digital assets and blockchain platform business increased 47% to 61.09 million yuan ($9.46 million) from 41.62 million yuan a year earlier. The company also generated revenue from the traditional advertising business and the provisions of business park area management services.
Huobi Technology Holdings, an electrical and electronic product maker, increased 37.4% to HK$18.88 on Tuesday. It has surged 205% from HK$6.19 at the end of last year.
The company has dive r sified to provide customized services to global customers in blockchain, virtual assets, fintech, big data as well as other innovative technology sectors after it acquired Win Techno Inc, a company providing data center and cloud-based services, in July 2019.
In the year ended September 30, 2020, Huobi Technology recorded revenue of HK$34.2 million from its technology solution business.
OKG Technology Holdings, a money lender, skyrocketed 51.9% to 21 HK cents on Tuesday. Last September, it launched the Tracker, a new function of its website oklink.com , to provide users with transaction graphs, address analysis and blockchain monitoring functions.
PC Partner Group, a manufacturer of VGA cards for computers, jumped 23% to HK$5.19.
Grandshores Technology Group gained 20.69% to 70 HK cents. In the six months ended September 30, 2020, Grandshores' revenue from blockchain technology development and its application business jumped 76% to S$5.65 million (US$4.27 million) from a year ago.
Hong Kong-based analysts have mixed views on whether these Hong Kong-listed blockchain stocks and cryptocurrencies will continue to rise in the coming few months.
Jimmy Lim, an individual investor and a YouTuber, said 2021 would be a 'year of Bitcoin' as the cryptocurrency would hit $50,000 very soon. He made the forecast on February 7 when Bitcoin was about $39,000.
Lim said he had allocated a majority of his portfolio in buying Bitcoin with an average price of US$15,000. Citing an analysis on the chart, he said he believed Bitcoin would reach $60,000 this year. He said he also bought alternative crypto coins Ethereum and Dogecoin.
Steven Wong, an analyst at Harris Fraser (International) Limited, warned people should be wary of investing in Bitcoin as the cryptocurrency was not backed by any hard asset and would probably disappear within 20 years. Wong said cryptocurrency and related stocks would also face rising regulatory risks over the long run.
Louie Shum, chief executive of Sincere Securities Ltd, said his followers should never buy any cryptocurrencies or related stocks, which he said were manipulated by a few speculators with a large amount of capital.
He said most of his followers were retired people, who should not take risks but invest in high-dividend blue chips or gold.
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