Bitcoin Treasure Strategy Stocks
If you have been told last month that there was a stock which would go from 2.5p to 600p, or another that would go from 3p to 89p by the end of June, would you have bought them? Apparently, there are some people who would not have done so. They argue that Bitcoin Treasury Strategy stocks (BTS) are not a proper concept, and that the rally we had seen until this week was merely a bubble.
However, the opportunity to buy the aforementioned stocks, Smarter Web (AQSE:SWC) and Coinsilium (AQSE:COIN) was there last month, and both were highlighted here on Zakstraderscafe.com on a technical basis, first at 10p and then at 3p respectively. Of course, no one had to buy them, and fewer still would have expected them to multi-bag as much as they have.
Nevertheless, there have been life changing gains for those who did buy the shares, and hopefully those who are still in them higher up will prevail. But not to have bought them, also seems wrong. Those who invest in the stock market are there allegedly doing so to make money. Until last month the small cap end of the London stock market had been in one of the most brutal bear markets, with opportunities to make decent gains being few and far between. This is over and above the companies who chose to delist during the period. Rather than throwing stones at the companies that have gone for BTS and those who have invested in them, would it not be more appropriate to congratulate those who have finally made some gains after such a long time, rather than just say it is all a bubble. One would also like to congratulate the management of BTS companies who have given investors the chance of making money. The most likely scenario from here is that there will be a divergence between those companies who have expertise / management who are skilled in the space, and those who are just “me too” merchants.
The wheat will be sorted out from the chaff, and who knows, we may have a decent British version of MicroStrategy (MSTR) over coming months. The race is on, and it is compelling viewing. But merely to say that this is a bubble, normally said from those who have either missed out, are jealous of other people doing well, or wishing them to lose money, is clearly not constructive. There is currently a lot of noise, with stories of those who got out at the top laughing at those left offside, or a rumour that one crackpot blogger has been caught short of a BTS stock and is subsequently calling it down. Presumably, it will all come out in the wash by the end of the summer. In the meantime, it really is a matter of keeping a close eye on the Bitcoin price, and looking to see which play turns out to be the winning horse. We are yet to find out what the difference is between a bull run and a bubble. And to suggest you should not invest because you might lose money, is rather like saying you should not getting married because you might get divorced.
BP / Shell
One of the things apart from some small cap opportunities that the London stock market really needs is a blockbuster deal. Therefore, for a few hours this week it was very exciting that there was a report in the Wall Street Journal that BP / Shell could be engaging in a merger. Rather disappointingly, it did not take long for Shell to vehemently deny the rumours, and from all the updates I received on my phone, kept on doing so. There are a couple of points here. It is an existing rule in M&A that if talks are leaked the deal is off / denied. So it still could have been the case that a marriage was being discussed. The second point is that judging by the positive reaction to the rumour, BP/Shell is something that the two oil giants should be working on, if only on the basis of the light it would shine on the London stock market.
Save Our Stock Market
I write quite frequently about what is wrong with the stock market. Given the fact I have absolutely no voice at any level in the market it is unclear why I continue to do this. It is also apparently the case that the more I write about it, the more the people who could change matters will ensure that there will be no much needed overhaul. One of the things that people do not appreciate that in most cases in life the way things are is not due to omission, neglect, it is deliberate and ongoing.
For instance, the first year of the Labour party is not incompetence, it has been a perfectly delivery of the government’s credo. For example, the pensioners, farmers, private school parents, national insurance, entrepreneur exodus, small boats all designed to create dependency on the State, or increase the pool of people voting Labour, or having to vote Labour. There is no regard for generating wealth or even getting cash for the exchequer. Indeed, the greater the borrowing bill the more impoverished we all become, and therefore more likely to vote Labour. At the same time in the stock market, stamp duty on shares, the tax policy for pension funds on shares, red tape, and how much they can invest in the stock market, were all and are all ways to deliver a Labour policy, to destroy sources of wealth that independent of the state. Those who wish to delve deeper can ready the City SOS article in CityAM from last Thursday.
This Week’s Stock Risers On News
The quick ones to cover in this respect are those companies who went for BTS. They include TruSpine (AQSE:TRU), Catenai (CTAI) and Amazing AI (AQSE:AAI). Gedhow (AQSE:GDH) announced that it had a chunky gain in Coinsilium (AQSE:GDH), seeing its shares soar 135% on the week. Autins Group (AUTG), the UK and European based manufacturer thermal insulation solutions, rose 78% on a promise to reach profitability next year, despite potential tariff impacts. Energy transition company Technologies New Energy (TNE) was up 70% as it announced that former director Julio Perez was to be appointed CEO. Gem Resources (GEMR) rallied 58% in the wake of its approved AGM, with Mast Energy (MAST) jumping almost the same amount after its AGM. Another AGM winner (up 23%) was Solvonis Therapeutics (SVNS), a clinical-stage biopharmaceutical company. There was added sizzle from its associated strategic update in which it said, “With the acquisition of Awakn now complete, we are strategically positioned to lead in transforming the treatment landscape for substance use and treatment-resistant mental health disorders across Europe and beyond.”
LED lighting specialist Dialight (DIA) jumped 50% on the week, as it boasted a return to profitability. Bezant (BZT), the copper-gold exploration and development company, as it revealed Blackstone have on 27 June 2025 released two announcements i) a confirmation of the completion of its merger with IDM and ii) a corporate update on board and management changes that will follow completion of its merger with IDM. AIM-listed mineral exploration and development company Ariana (AAU) announced a significant enhancement within its updated economic model and Strategic Options Study for the 100% owned Dokwe Gold Project in Zimbabwe. AAU shares rose 39% on the week. Also well received was Bluebird Mining Ventures (BMV), a pan Asian gold project development company, following a new “digital” gold + physical gold married strategy. BMV has now commenced the drafting process of a new prospectus with a view to raising a minimum of £10 million at what we anticipate to be a premium to the current share price. Investing company Gunsynd (GUN) was up 28% on the week, as it announced that it has entered into a legally binding Term Sheet with Critical Discoveries in Canada which sets out the indicative commercial terms through which it will enter into a farm-in agreement. Eurasia Mining (EUA), was up 22% as the mining company announced the appointment of SPARK Advisory Partners Limited as its Nominated Adviser with immediate effect. Our friends at OAK Securities replace SP Angel as brokers to the Company. EUA said that in relation to the dual listing on the Astana International Exchange (“AIX”), there are no remaining compliance conditions for Eurasia to satisfy and the process is progressing towards completion.
This Week’s Stock Risers On No New News
Always the most exciting part of the Week In Small Caps, there was plenty to chew on as far as those companies rising without the need of a RNS. Top of the list was Australia focused explorer Wishbone Gold (WSBN), up 82%. The best story that fits here is that some (broad minded people) were regarding the company as the next Greatland Gold (GGP). If this is the case, there is a billion or two of market cap to catch up on for WSBN. Associated British Engineering (ASBE) soared 75%, without news this week, although it had revealed its half year results the week before, with a narrowed loss. Also a hangover from last week was Tungsten West (TUN), after the Hemerdon, Devon focused mining company revealed a corporate presentation on June 16, as had been classed a strategic project earlier in the month. CloudCoCo (CLCO), a growth-focused technology business specialising in IT procurement solutions has been silent since the end of April, but still managed a 48% rise this week. There was a 23% rise for CAP-XX (CPX), presumably on reflection of the new contracts and “strong” cash position announced at the beginning of June.
Hydrogen Utopia
It has not exactly been a smooth ride for waste energy to hydrogen group Hydrogen Utopia (HUI), even though things started well. Indeed, within a year of being listed the company upgraded from Aquis to the main market of the LSE, as the market cap swelled to over £30m. This was off the back of prospects for a roll out of waste energy plants over the EU, off the back of the idea that the bloc was keen on addressing the carbon and plastics crisis we have. However, it would appear that like many things originating across the Channel, all of this was in the virtue signalling mode, and not something which would be easy to get over the line. Everything changed however, with the announcement of a MENA waste to hydrogen deal earlier this month. This killed two birds with one stone: firstly an area of the world that has both the will and the money to deliver a roll out of environment saving initiatives. Second, and perhaps more importantly, a proven technology to deliver it, something which has been a bug bear until now. Indeed, licensing InEnTec’s Plasma Enhanced Melter system is the game changer for HUI, both in terms of its business model, and hence for shareholders. Even better, HUI does not need capital for the initiative. Instead, it will get a management fee per customer, and an equity stake in each project. All we have to do now is wait for the first customer to sign the first license to prove the model. Given the clear appetite in the Middle East for the waste solution, confirmation by HUI of a signing could and should be transformational not only for the company, but its share price which initially soared on news of the InEnTec deal, and could do so again given the right news, confirmation of the first deal.
Boku
During the week I wrote a Stock Focus on Boku (BOKU), the payments group, one that I happened to interview a couple of years ago. Even then the company seemed very impressive. Arguably, it is now even more so, given its technology and customers from the Magnificent Seven tech companies. As I noted, recent results from the company show it is going great guns, and it beggars belief that it has not been approached – probably by one of its key customers, on the M&A front. Even if this is not the case, the shares have jumped to 4 year highs above 200p, and from a technical perspective could stretch to 230p by the end of next month, deal or no deal.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
