- Stablecoin Development Corp surged tenfold in two weeks with no identifiable catalyst, hitting a $500 million market cap despite holding less than $500 million in assets.
- Tether, a major investor, holds warrants exercisable in mid-October that have suddenly become far more valuable after the unexplained price spike.
- The company filed with the SEC stating it had no idea why the unusual trading occurred and that it does not believe corrective actions are appropriate.
- Short sellers have been unable to find affordable shares to short, and the stock has since fallen to roughly $4.50 per share on no news.
Stablecoin Development Corp, a company that had traded around a minimal $50 million market cap for months, saw its price jump tenfold in just two weeks for absolutely no reason whatsoever. Tether is a major investor in the company, whose primary business appears to be earning interest off of USDS.
The $50 million market cap was perhaps low for a company with over $150 million in assets and little debt, yet the stock briefly hit nearly $10 per share — a $500 million market cap for a stablecoin treasury company with far less than $500 million in assets. The stock has since fallen to roughly $4.50 per share, also on no news.
While short sellers have been unable to find affordable shares for shorting, the value of the company has continued to rocket upward since September 25, with no identifiable reason for the rapid increase. Four days after the unusual trading activity, the company filed with the SEC to say that it had no idea why it was occurring or who was behind the trades.
The company also stated that it “does not believe corrective actions are appropriate.” Meanwhile, Tether has warrants related to Stablecoin Development Corp that will be available to exercise in mid-October, and these warrants — which had more or less been a write-off up until this point — suddenly appear far more valuable.
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