Following a key announcement from the company yesterday, the Bullet Blockchain Inc (OTCMKTS:BULT) stock got a significant boost and ended up with gains of as much as 14% amidst considerable interest.
Market Reaction
On Monday, BULT stock surged 14.27% to $0.0800 with 8.9K shares, compared to its average volume of 15.3K shares. The stock moved within a range of $0.0700 – 0.1170 after opening trade at $0.1170.
Bullet Blockchain And AQ Group Limited Enter Into Mutual Agreement To Unwind Infrastructure Partnership
Yesterday, the company announced that as it had been previously mentioned in the 2021 Year End Financial Disclosures of the company, Bullet Blockchain and AQ Group Limited, had mutually agreed to wind down their working relationship. It was also noted that the move was going to be beneficial for the companies. The whole thing had actually been resolved in March this year when the two parties signed a Deed of Mutual Contract Rescission.
It is also necessary to note that the move had also led to a joint return of assets for both the companies. Bullet got back as many as 112,195,122 shares from AQ as part of the deal and in turn, Bullet had to return a total of 3500 ASIC miners to AQ. It has also been suggested that the move is also going to come as a boost for the Bullet Blockchain investors. Following this move, the company is expected to move its mining operations to Kazakhstan and that could lead to much lower costs.
Key Quote
Imran Ellis, the CEO of Bullet Blockchain, Inc., stated, “While this was not an easy decision for either Bullet or AQ to make, to preserve Bullet’s broader financial vision, unwinding what was otherwise a positive relationship, was essential. Fortunately, going forward with all our financial relationships intact, we have been able to align with additional infrastructure partners in the U.S. and the Middle East. We intend to begin with a buildout of 10 megawatts of capacity and expand from there.”
Traders Review
BULT stock is trading above the 20-Day and 50-Day Moving averages of $0.1025 and $0.1626 respectively. However, the stock is trading below the 200-Day moving average of $0.2918.
