Crypto Co. (CRCW), engaged in the digital currencies and blockchain sector, announced its plans to execute a 10-for-1 stock split, citing the significant growth in the value and demand for its shares amid the ongoing digital currency market boost.
Crypto CEO Mike Poutre said, "We are aware of the recent fluctuation in our stock, and want to see orderly market activity surrounding the trading of our stock. Splitting the stock will increase our float of free trading shares and is the responsible thing to do."
On Wednesday alone, Crypto stock surged around 40.8 percent to $314.
According to the company, the 10-for-1 stock split will automatically convert each current share of Crypto's stock into ten new shares.
The value of bitcoin, the virtual currency, has been soaring day-by-day, despite increased warnings of a price bubble. On CoinDesk, bitcoin's last traded price stands at $16,744.63.
Crypto Co. is one of the first publicly traded technology companies in the digital currencies and blockchain sector. It offers a portfolio of digital assets, technologies, and consulting services to the blockchain and cryptocurrency markets.
In a statement, Poutre urged all investors to be cautious when they see volatile markets such as this and asked them to be cautious and judicious when considering the purchase of the company stock.
SEC warning on Cryptocurrencies
"We hope that an increased float will contribute to a more orderly and safer market for our stock and corresponding investors.... There are a lot of companies taking advantage of the euphoria associated with this space, and we do not want be associated with them. We want people to pay attention to the business we are building, not the hype of a stock or the cryptocurrency world," he added.
With the extraordinary surge in Bitcoin prices, there are fears that it can lead to e-ponzi schemes. The digital currency had hit another all-time peak on Tuesday, two days after the launch of the first-ever bitcoin futures on a US exchange.
The Chicago Board Options Exchange's (CBOE) website was jammed in the initial hours due to heavy traffic on its website with potential traders looking for the trading data. Read more
Meanwhile, Bitcoin futures will launch on Chicago Mercantile Exchange, the world's largest futures exchange, on December 18. Bitcoin futures are considered a major milestone that shows the digital currency is being accepted by major financial exchanges.
Meanwhile, regulators, banks and clearing houses are expressing concerns over the currency frenzy.
US Securities and Exchange Commission had issued a warning against the risks involved in cryptocurrencies and "initial coin offerings". Wall Street's biggest banks and clearing houses have expressed concerns over federal regulators granting approval for bitcoin futures trading without adequate dialogue and precaution.
Recently, Reserve Bank of Australia Governor Philip Lowe also has commented that the current fascination with cryptocurrencies feels more like a speculative mania.
by RTT Staff Writer
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