Future FinTech Stock Falls Despite Cryptocurrency Miner Acquisition
Shares of blockchain company Future FinTech (NASDAQ: FTFT) fell on Wednesday after the company announced it's taking a stake in a cryptocurrency mining company. Considering cryptocurrencies and cryptocurrency stocks have generally been on a hot run during this past week, one might have expected Future FinTech stock to rise on this news. But as of 12:45 p.m. EDT, it was down 9%.
Future FinTech has entered an agreement with Mingtang Network Technology for a 51% equity stake. While the price could change by the closing date, the 51% stake is only expected to cost $7 million. However, Mingtang Network is needing a $91.7 million investment to significantly upgrade its cryptocurrency mining capabilities. With its 51% stake, Future FinTech will provide 51% of the funding -- almost $47 million. Perhaps its this added cost that has investors second-guessing this acquisition today.
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Source Fool.com
