Bitcoin-Related Stocks Have A Wild Day

Among the most active stocks in trading Monday (Nov. 27), three out of four were either increasing in value thanks to cryptocurrency or declining because of it.

According to a report in Reuters, telecom power supply solutions provider Digital Power Corp. surged in trading after announcing it would provide an update on Coolisys Technologies, its cryptocurrency project, next week. The company’s stock jumped from $12.8 million as of the close of trading last week to approximately $40 million during Monday’s trading.

Another stock seeing an increase was that of patent asset acquirer Marathon Patent Group, the prices for which rose by nearly one-third after quadrupling in value late last week, despite thin trading volumes. The stock has a market value close to $50 million and is now the third most traded stock in America. Earlier in November, Marathon Patent Group announced it would buy cryptocurrency mining company Global Bit Ventures and said last week it would give an update on the deal during an investor conference call held after trading on Monday.

Meanwhile, following a stark rise earlier in the month, mobile payments company Square saw its stock fall on news it will allow purchases via Bitcoin. Riot Blockchain stock also decreased after surging 240 percent since the beginning of November. The decrease came after the company disclosed it would purchase 1,200 Bitcoin mining machines.

The frenzied trading up and down in Bitcoin-related stocks comes as the volatile digital currency has been making its investors scores of money. After trading at approximately $1,000 at the beginning of the year, the cryptocurrency’s value has surged beyond $9,000 per coin. Proponents of Bitcoin expect the value to increase even more.

The volatility associated with Bitcoin and other digital currencies has prompted regulators around the globe to warn about trading in them. China has gone so far as to ban Bitcoin exchanges and initial coin offerings (ICOs) in the country.