It has not been an easy run for Future FinTech Group (NYSE:FTFT) this year, but bulls are basking in the sun on Thursday. Indeed, FTFT stock is popping more than 17% on the day.
At one point near market open, shares were up almost 23%. That said, the stock is retaining a bulk of its gains thus far. The rally comes after the company formed a new blockchain division. While investors’ favorite buzzword seems to have changed to “metaverse,” plenty of investors are still interested in blockchain.
The new division “will manage its existing blockchain sector business which will include the further formulation and execution of its strategic growth plan.” Further, its “primary mission will be to develop, operate and manage the company’s previously announced bitcoin mining farm plans in the United States and Paraguay.”
Earlier this month, the company also formed a cooperation agreement “with APC Service to form a joint venture in Ohio, U.S., to build a cryptocurrency mining farm over the course of six expansion phases.”
Additionally, Future FinTech Group expects the new unit to coordinate its Dubai-based digital currency trading service, as well as its crypto asset management service.
Heading the unit will be Mr Kai Xu, the deputy general manager of FT Commercial Group (the company’s cloud business). Further, he previously served as Future FinTech Group’s COO.
A Look at FTFT Stock
Despite today’s rally, shares of FTFT stock are still well below the high from earlier this week. On Monday, shares rocketed up to $1.84, but ran into some key weekly moving averages that prevented a further advancement.
Still, the stock is trading pretty well today and doing so on plenty of volume.
FTFT stock has a trailing 20-day average of 3.28 million shares coming into the session. Before this week, that average sat at just 1.3 million shares. Already, the stock has changed hands 20.2 million times, and it’s less than two hours after the open at the time of writing.
For reference, Monday’s massive rally — in which the stock climbed 67.3% at the highs and settled higher by 36.3% — saw volume of 36.1 million.
With the current rally, FTFT stock now sports a $108 million market capitalization.
On the date of publication, Bret Kenwell 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.