NCTY Stock Price Increases Over 30% Intraday: Why It Happened

By Amit Chowdhry ● March 1, 2021
  • The stock price of The9 Limited (NASDAQ: NCTY) is trading at over 30% during intraday trading. This is why it happened.

The stock price of The9 Limited (NASDAQ: NCTY) is trading at over 30% during intraday trading. Investors appear to be responding to the company recently announcing the appointment of Cai Zhifang as the Chief Executive Officer of NBTC Limited, a wholly-owned subsidiary of The9, to lead the development of blockchain and cryptocurrency business in NBTC. 

Cai is an early pioneer in the blockchain industry. In 2013, Cai had co-founded YiBit Digital Technology Company Limited, one of the earliest integrated platforms in blockchain industry in China. And In 2015, Cai served as the general manager of WeiTui Technology Limited Company — which self-operated Bitcoin mining by the purchase of AvalonMiners from Canaan. The peak hash rate managed by Cai at that time accounted for nearly 4% of the global hash rate of Bitcoin. Afterward, Cai established a strategic partnership with Canaan, responsible for assisting its customers in establishing, operating and maintaining AvalonMiners. At that time Cai managed and operated more than 300,000 AvalonMiners, with an accumulative hash rate exceeding 5,000 PH/S, which accounted for nearly 5% of the global hash rate of Bitcoin at that time.

After joining the NBTC team, Cai will be responsible for leading the expansion of NBTC blockchain and cryptocurrency business, making full use of his industry experience and resources to formulate and execute NBTC’s business strategy and to implement the cooperation between NBTC and worldwide cryptocurrency ecosystem partners with the goal to accelerate the establishment of The9’s global leadership in the cryptocurrency industry.

The price of the cryptocurrency Bitcoin is up over 4% today, which is providing a sympathy play catalyst for NCTY as well.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.