Louis Navellier’s #1 Stock for 2022

On October 20, the man who recommended Google before anyone else will reveal his #1 stock pick for 2022 — for FREE — ticker symbol and all — in a special presentation.

Wed, October 20 at 4:00PM ET

IKNX Stock: The Huge Bitcoin Mining News Sending Ikonics Skyrocketing

Today, investors in Ikonics (NASDAQ:IKNX) and IKNX stock are seeing absolutely impressive gains. Indeed, shares of IKNX stock are up more than 90% at the time of writing on very heavy volume.

A Bitcoin (BTC) coin sitting on a mossy piece of wood.

Source: Shutterstock

Now, for various cryptocurrency-related stocks, such volatility may be expected from time to time. However, as investors may guess, there’s a big catalyst today that’s sending shares of this imaging technology company higher.

Let’s take a look at the big catalyst which is propelling IKNX stock toward a record high today.

IKNX Stock Soaring on Deal with Bitcoin Mining Company

ESG-focused Bitcoin (CCC:BTC-USD) mining company TeraWulf announced today that it is merging with Ikonics. This deal is one the market is cheering, with Ikonics nearly doubling as a result.

Indeed, the merger appears to be bullish for investors in IKNX stock in terms of its structure. Investors in IKNX will receive $5 in cash for each share, plus one contingent value right per the agreement. The combined company is expected to be listed on the Nasdaq under the ticker WULF following the deal.

Given the fact that IKNX stock was trading at only $11.30 per share yesterday, today’s $5 cash component — plus the upside provided with the merger — has resulted in massive buying pressure for this stock today. Investors appear to like the synergy potential of the deal, along with TeraWulf’s business model. As an ESG-focused Bitcoin miner, TeraWulf generates its Bitcoin revenue using 90% zero-carbon energy. With over 60,000 miners on order, the potential growth this stock can provide moving forward is huge. That is, should Bitcoin prices once again move higher.

Right now, IKNX stock fits the niche of a high-risk, high-reward play investors like right now. Accordingly, I’d expect to see more volatility on the horizon for this stock.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks. 

Read More: Penny Stocks — How to Profit Without Getting Scammed 

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2021/06/iknx-stock-the-huge-bitcoin-mining-news-sending-ikonics-skyrocketing/.

©2021 InvestorPlace Media, LLC