How Long Can The Ninth City Survive On Bitcoin

The ninth city (NCTY. NASDAQ) rose again on February 19, US Eastern time.

On February 19, the ninth city opened at US $65.57, and rose to US $88.43. At the end of the day, the ninth city rose 31.22% to close at $82.89.

This is the ninth city to rise for 13 consecutive days. On February 1 this year, its closing price was only $13.9. Since then, it has risen 496.33%. What's more, the ninth city has risen more than 22 times this year.

Once known as the agent of "world of Warcraft", the ninth city of online game giant is no longer a traditional game agent. In recent years, it has entered the blockchain and set foot in new energy vehicles, and now it has become a hot spot of digital currency.

This is also the biggest reason for the rapid increase of its stock price recently. On the news, bitcoin has recently hit record highs, with a total market value of more than $1 trillion. By midday on the 20th, bitcoin broke the $56000 mark, with a 24-hour increase of more than 10%, and its market value exceeded $1040 billion.

In the face of the soaring share price of the ninth city, some investors expressed their heart to 21tech, "I can't help watching its share price rise several times.".

However, several people said that they were "too crazy to buy". As a matter of fact, with the stock price soaring, the ninth city is facing serious insolvency. According to its latest financial report, by the end of June 2020, the total assets of the ninth city was 94.6967 million yuan, while the total liabilities were as high as 493 million yuan.

In addition to the ninth city, the share prices of Jianan Yunzhi, which specializes in mining machinery, and 500 lottery network, which has entered the mining pool field, have also experienced a sharp rise in the past month. At the beginning of 2021, how long can the hot "mining concept stocks" last?

Bitcoin effect

In 2021, the ninth city "mining" action is frequent.

On January 4, 9th city announced that Kong Jianping, the former chairman of Jianan Yunzhi co chairman, signed a letter of agreement on cooperation and investment terms with legal liability. Jiucheng will grant shares and warrants to the partners in an agreed phased manner, obtain cash investment from the partners, and provide exclusive assistance to Jiucheng in digital currency related business.

This marks the ninth city officially opened the digital currency mining machine business. Just the day before, bitcoin prices rose to $340 million, a record high.

For the ninth city, "bitcoin effect" is immediate. On the night of the official announcement, the stock price of the ninth city rose in response to the announcement, rising 87.01% to $6.62 at $5.71 after the opening of the U.S. stock market.

The rally continued for three trading days. From January 5 to 7, the shares of the ninth city rose 29.31%, 73.95% and 14.84% respectively, and closed at $17.1 on January 7.

The ninth city, which first tasted the sweetness of digital currency, has since accelerated the speed of official propaganda. On January 25, the ninth city announced that it had signed a legal memorandum with five mining machine owners, and would purchase digital currency mining machines by issuing new shares.

On February 8, the ninth city announced again that it had signed legal memoranda with six mining machine owners to purchase a batch of bitcoin digital currency mining machines by issuing new shares. This batch of equipment will include bitcoin mining machines of different brands, such as bitland, Avalon and Shenma, with a total number of 10489, and the total computing power is about 251ph / s. The mining machines have been deployed in Xinjiang, Qinghai, Inner Mongolia and other places.

At the same time, the ninth city said that it had signed formal purchase agreements with five mining machine owners who signed the purchase memorandum on January 25, and 26007 bitcoin mining machines will be officially delivered to Jiucheng, which will be included in the bitcoin mining amount of Jiucheng. After the completion of the two purchases, Jiucheng will complete the deployment of 36496 bitcoin mining machines, and upgrade the total computing power to about 800ph / s.

On February 9, the ninth city rose 38.12% to $34.24.

This is not over. Since then, the ninth city has continued to increase its purchasing efforts. On February 17, the ninth city announced that it had signed a US $11 million cooperation framework agreement with a filecoin mining machine service provider to purchase filecoin mining machine server cluster and technical services in cash.

The ninth city said that based on the advanced technology of filecoin, long-term tracking of the price trend of filecoin and analysis of its economic incentive mode, the ninth city decided to sign another $10 million procurement agreement on the basis of the original procurement, and will continue to invest in the filecoin project.

No doubt, the capital market has paid a lot of money behind the recent official propaganda actions of the ninth city. This is closely related to the recent craze for bitcoin. Since February 6, bitcoin has broken through $40000, US $50000 / piece in a short period of time, and even exceeded the "sky high price" of $56000.

Its rapid rise has also triggered comments from technology giants such as Bill Gates and musk. Even Bill Gates, who was once adamant about bitcoin, even said he had "no bitcoin and no short bitcoin. So, I take a neutral view. "

Ten years of transformation

JPMorgan summed up bitcoin's hot speculation as "an emotional manifestation of making quick money.". Epitomized to the ninth city, it is a simple and direct "hot spot".

In fact, since 2018, the ninth city has announced the establishment of a wholly-owned subsidiary to promote the blockchain technology service business. Today, the ninth city has set up services including blockchain consulting, technology development, digital asset issuance, etc., and has invested in a number of overseas blockchain projects including telegram.

Now, the ninth city announced its entry into the digital currency mining business, which is the most directly related business layout of bitcoin.

Now open the official website of the ninth city, which is full of news about purchasing bitcoin mining machines. Only in the "nine cities Chronicle", can we have a glimpse of the traces of this once online game giant. Back 20 years ago, the ninth city launched its first online game "miracle" in 2002, which became the second largest online game in China that year, and helped the ninth city to become an online game oligarch.

In 2004, the ninth city obtained the domestic agency right of "world of Warcraft" with us $13 million. The game contributed most of the profits of the ninth city, and helped it successfully land on NASDAQ and complete the listing on December 16, 2004.

According to the financial report, in the fourth quarter of 2007, the net income of the ninth city was 36.2 million US dollars, and the net profit increased by 33% year on year. However, 99% of the profits came from world of Warcraft. This means that if you lose world of Warcraft, you will lose the only cash cow.

Sure enough, the contract between the ninth city and Blizzard expired in 2008, and the agency right was transferred to NetEase. In 2009, the revenue of the ninth city was 802.6 million yuan, a year-on-year decrease of 55.6%, and a net loss of 410 million yuan.

Since then, the ninth city has been in a slump. For more than ten years, it has not established and strong development direction, and has received many delisting warnings. By 2019, the revenue of the ninth city is only 341500 yuan, and the net loss is 178 million yuan.

In the past ten years, the ninth city has tried many times to transform itself. Xu was forced to open the "hot spot" mode. In early 2018, under the background of blockchain craze, the ninth city began to lay out blockchain services.

Interest in blockchains has only lasted a year. From 2019, the company began to enter the new energy vehicle industry. In March of that year, ninth city signed a joint venture agreement with Faraday in the future; in May, it established a joint venture with en + technology, an electric vehicle charging equipment supplier; in June, Jiucheng invested in battery management system suppliers to lay out the ecological chain of new energy electric vehicles.

However, these movements did not turn into water since then. Until this time, the ninth city won the hot speculation in the capital market.

At the same time, the performance report of the ninth city is mediocre. According to its latest financial report, by the end of June 2020, the total assets of the ninth city was 94.6967 million yuan, while the total liabilities were as high as 493 million yuan.

The annual income of 2019 is only more than 300000 yuan, and no strong main business direction has been found for ten years. The stock price of the ninth city has soared, and the logic behind it is not driven by investment idea, but full speculation. "This is a company with negative equity and various hot spots. Investors should be careful not to be wary." Some analysts are so blunt to 21tech.