Looks like Dennis Gartman, widely known as “Commodities King”, has an investing in a dubious blockchain company. Gartman has previosly described Bitcoin as being nothing more than a scam. According to an investigation made by CNBC, he owns the 30% of Riot Blockchain Inc.
Dennis Gartman appears to have göne against his own advice by owning the 30% of a blockchain company. Gartman has been involved in the markets since 70s. In ’87, he began producing The Gartman Letter which goes out to leading banks, brokerages, mutual funds and hedge funds. On Tuesday he was forced to deliver bad news to the letter’s subscribers:
“Friday was one of the worst days we have suffered through in a very long while. We were long of a sizeable position in a blockchain focused company that was the victim of a CNBC expose, which sent the shares down more than 20 percent and which sent us ‘down’ for the year to date, having been up about 6 percent previously.”
The company originally was named Bioptix. Then it’s name changed to Riot Blockchain. After the change, by December 19, the companies price had shot up to $38,60 from around $5 in October.
After the investigation of CNBC, the firm shaved 33% off its stock in a single day and now it’s trading for under $11. The CNBC article quotes SEC chairman Jay Clayton as saying: “Nobody should think it is OK to change your name to something that involves blockchain when you have no real underlying blockchain business plan and try to sell securities based on the hype around blockchain.”