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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.

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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/.

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