Interestingly, Delta Technology Holdings is trading down nearly 20% today. Why is that interesting? Well, considering it was only 4 days that the China-based company announced that it would be pivoting into the blockchain sector, thus causing the stock to surge nearly 200%, it’s likely that Tuesday’s decline was caused by investors who feel a little uneasy about the recent fluctuation in stock price.
Delta Technology Holdings (NASDAQ:DELT)
Last week, an eTradeWire report surfaced, stating that Delta Technology Holdings was going to enter the blockchain industry and create a framework composed only of blockchain for the IoT industry. On the news, the stock was trading at $3.32 at one point during the trading day.
However, on Tuesday, January 9, Delta Technologies is seeing red, trading at $1.92, which puts the stock down $0.42, or 17.95%.
Delta Technology, which creates chemical products and looks to invest in green innovation, has not released any new information today, therefore there is no direct explanation for the plunge today. However, it might have to do with the company’s announcement yesterday in which the company disclosed that it, due to company policy, is not eligible to talk about the market activity or rumors that are deemed unusual.
That said, we have seen this before with companies venturing into the world of blockchain. Remember Long Island Iced Tea? Well, that US company now goes by the name ‘Long Blockchain Corp.’ (NASDAQ:LBCC), and it announced back in late December that it was going to be entering the world of blockchain. Initially, the stock increased around 200%, but then dropped considerably only a few short days later. Sound familiar?
If this is the case, Delta Technology Holdings decline on Tuesday might be temporary, and like Long Blockchain Corp, the stock could start to rise again within the next couple days.
Check back in at the end of this week and we’ll talk a look to see if Delta Technology Holdings is in the early stages of a slump, or if it is just a minor setback early in the trading week.
Featured Image: twitter
