BC Technology Group Shares Drop 30%, Company Clarifies OSL Sale Rumor
BC Technology Group Limited, a leading digital asset and fintech firm listed on the Stock Exchange of Hong Kong (SEHK), issued a clarification announcement regarding unusual share price movements and misinformation circulating about the sale of its virtual asset trading platform, OSL.
On 17 October 2023, BC Technology Group observed a drastic dip in its share prices, plummeting close to HK$3, marking a daily decline of about 30%. The company swiftly responded with a public announcement stating the board had conducted reasonable inquiries concerning the abnormal price and trading volume fluctuations, finding no apparent reason for such market behavior.
A report surfaced on 16 October 2023 from Bloomberg, suggesting BC Technology Group was contemplating the sale of its cryptocurrency trading platform, OSL, with an alleged valuation of HK$1 billion (US$128 million). This news was based on anonymous insider sources claiming that potential buyers had expressed interest and that the firm might only sell part of the OSL business, not the entire operation.
The board of BC Technology Group categorically denied the allegations, labeling the Bloomberg article as “factually inaccurate and highly misleading.” They emphasized that no such considerations were being made, urging shareholders and potential investors to exercise caution when dealing in the company’s shares.
The mid-year financial report of BC Technology Group demonstrated a narrowing net loss of HK$95 million for the six months ending June 2023, significantly down from over HK$300 million during the same period in the previous year. The company highlighted that OSL’s digital asset and blockchain platform operations remain its primary revenue source, albeit with a nearly 50% reduction in digital asset trading volume on OSL to HK$112.6 billion in the first half of 2023 compared to the same timeframe in 2022.
Despite the market’s reaction, BC Technology Group maintains a transparent communication stance, dispelling rumors swiftly to uphold its market integrity. The misinformation surrounding the OSL sale, as per the board, has no basis in reality and aims to provide clarity to its stakeholders amidst turbulent market conditions.
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