Gartman Loses Big On Biotech-Turned-Blockchain Stoc

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Dennis Gartman, the longtime publisher of an investment newsletter and television commentator known as the “commodities king” famous for touting blockchain technology while dissing bitcoin, might be having second thoughts about placing retirement funds in Riot Blockchain Inc.

Riot Blockchain lost a third of its value on Feb. 16 following a CNBC report about the biotech-company-turned-blockchain-startup.

One Of His Worst Days

On Tuesday, Gartman wrote that it was one of the worst days he has experienced in a long time, according to Bloomberg News. He was long of a sizeable position in the blockchain focused company when it fell victim to the CNBC expose that sent the shares down more than 20 percent. The fall sent Gartman down for the year after having been up 6%.

In October, the Bioptix Inc. announced it was rebranding itself as Riot Blockchain following years of weak stock performance and revenue growth. In response, shares more than quadrupled, but the gains didn’t last.

Shares of Bioptix, which manufactured diagnostic machinery for the biotechnical industry, had traded between $4 and $4.50 for the majority of September 2017, but they soared above immediately following the October announcement that the Colorado firm would make the leap into the burgeoning cryptocurrency industry.

Bioptix said it would shutter its operations and liquidate its biotech patents as it transitions into Riot Blockchain. It cited its first foray in the blockchain industry as a multi-million dollar investment in Coinsquare, a Canadian cryptocurrency exchange.

Gartman, who is 67, said lessons need to be continually relearned.

Consistent Bitcoin Critic

Gartman has been high on blockchain technology while he has consistently criticized bitcoin.

He said in January he expects the bitcoin market will fall when its value drops to $5,000. He has criticized bitcoin for having no intrinsic value, and he recently said it makes the tulip bubble in 17th century Holland that sent the Dutch into a frenzy look almost like a “quiet, well demeanored market.”

Featured image from Shutterstock.

Kevin Shawe

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Kevin Shawe
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