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Bluesky ‘unaware’ of reason for 140% share price gain

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Bluesky Digital Assets Corp. says that it is unaware of any material change to its operations that would explain a jump in its stock price Thursday.

Shares of Bluesky Digital Assets rose by over 140 per cent during afternoon trading Thursday, rising to just under $0.65. The Toronto-based company trades under the symbol BTC:CF on the Canadian Securities Exchange, similar to the symbol for Bitcoin, though the reason for the rally remains unclear.

In a press release Thursday, the company said that at the request of the Canadian Investment Regulatory Organization (CIRO), it “wishes to confirm that the Corporation’s management is unaware of any material change in the Corporation’s operations that would account for the recent increase in market activity.”

The price of Bitcoin has gained following Donald Trump’s victory in the U.S. presidential election, with Bloomberg News reporting Wednesday that the price of the digital currency briefly rose above US$93,000 for a short period amid further expectations of interest rate cuts by the U.S. Federal Reserve.

According to the release, Bluesky operates a web platform that offers support for businesses to adopt and utilize emerging technologies like blockchain, artificial intelligence and Web3 business solutions.

The Toronto-based tech company also shares a similar name to Bluesky, the social media platform, which according to Bloomberg News was started in late 2019 by Jack Dorsey, Twitter’s CEO at the time.

Bluesky, the social media platform, has around 15 million users, adding more than 1.25 million new users since the Nov. 5 U.S. election, reported Bloomberg News. In September, the platform had about 10 million users. Additionally, one week after the U.S. election it was ranked as the top free app in Apple’s App Store.

On Monday, Bloomberg News reported that rival social media networks to Elon Musk’s X, including Threads and Bluesky, have seen a growth in new users post U.S. election.