Microcap AirNet Stock Nearly Doubles On Kazakhstan Bitcoin Mining Deal, Retail Buzz Explodes

Shares of Beijing-based AirNet Technology, Inc. (ANTE) jumped nearly 100% on Monday after the company that operates out-of-home advertising networks in China announced plans to diversify further into blockchain technology and data center business.

The company said it has signed a non-binding letter of intent (LOI) with Kazakhstan-based LLP STP Corp. to invest in the 130-megawatt (MW) liquid-cooled Bitcoin (BTC.X) mining project.

The planned project envisages the construction of a 70 MW national grid facility and a 60 MW natural gas self-generation facility, using liquid-cooling to enhance operational efficiency and extend equipment lifespan. 

AirNet said the technology will also help to reduce operating costs significantly.

The company said the two parties have yet to finalize the terms, structure, and timing of the investment. It said, “The LOI is non-binding and the parties are not obligated to any transaction.”

AirNet sees the proposed plan as a means to further its strategic expansion in blockchain technology applications and the data center sector.

Last May, the company announced the purchase of cryptocurrency mining machines for 177.2 million yuan ($24.5 million).

Retail chatter on the AirNet stock stream on Stocktwits spiked by 23,600% amid the news. 

The sentiment toward AirNet stock, however, was mixed. 

A watcher saw the announcement as an effort to pump the stock, and they anticipated heavy shorting.

However, another user expected follow-through gains.

AirNet stock gap opened Monday’s session up at $1.26 compared to the previous session’s closing price of $0.8134. It traded in a range of $0.9713 to $1.78 before settling at $1.61.

Monday’s rally has helped the stock clock a whopping 235% gain for the year-to-date period. 

AirNet’s stock tumbled more than 26% in Monday’s after-hours trading, likely driven by profit-taking.

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