Shares of The9 Limited (NASDAQ: NCTY) got crushed on Friday. The company told investors that it found someone to head up its new cryptocurrency division. And given how much this stock has run up on cryptocurrency hype, you'd think that would send this stock higher. But as of 3:30 p.m. EST, The9 stock was down 17%.
Keep in mind that while The9 stock is down 17% today and down roughly 60% from highs earlier this month, it's still up almost 900% year to date. The surge started when the company announced it was going to start mining cryptocurrency in early January. Since then, it's announced the purchase of mining equipment for Bitcoin (CRYPTO: BTC) and Filecoin (CRYPTO: FIL) . (Different cryptocurrencies often require different kinds of mining equipment, which is the case for Bitcoin and Filecoin.)
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Why The9 Limited Stock Got Crushed Today