Northern Data AG sees its shares surge 40 percent as COVID-19 drastically increases demand for computational power
The shares of Northern Data AG recently skyrocketed by almost 40 percent.
This massive price pump was preceded by the announcement that the Xetra-listed company plans to expand the computational capability of its Texas site to 3.6 gigawatts and open new facilities in Canada and Scandinavia on top of that.
COVID-19 drives demand for computational power
While the coronavirus pandemic continues to ravage businesses around the world, Northern Data’s press release states that it has led to a massive uptick in computing capacity demand. It comes from both pharmaceutical companies and all of the businesses that are working remotely.
However, @BTCKING555, an anonymous Twitter user who is famous for leaking information about major mining companies, wasn’t amused by the noble effort to fight the deadly virus, accusing the company of ‘pumping’ its stock.
The company was formerly known as ‘Northern Bitcoin AG’ before changed its name back in January 2020 because of the merger with Whinstone US.
For some reason, Northern Data is now listed as a biopharmaceutical company on Business Insider.
Last week, the U.S. Securities and Exchange Commission (SEC) suspended trade for Beijing-based holding firm Zoom Technologies. Apparently, investors confused it with conferencing service Zoom due to the massive work-from-home experiment.
The situation with the coronavirus is reminiscent of to Riot appearing in the SEC’s crosshairs after pumping its stock by changing its name to ‘Riot Blockchain’ despite not dealing with the technology.