BitNile(NILE) , a holding company with exposure to Bitcoin mining, and Mullen Automotive(MULN) , an electric car maker under Wall Street's radar, have been catching the attention of investors.
Gaining in popularity on social media, especially Reddit, these stocks have recently soared.
Let's take a deeper look into NILE and MULN and what they have in common.
(Read more from Wall Street Memes: GameStop Stock: Ryan Cohen Is The Biggest "Ape" Of All)
Two Reddit Crowd Favorites
Recently, BitNile and Mullen have been among the top 10 most discussed stocks on Reddit.
A combination of positive news related to the companies' fundamentals and their skyrocketing stock performances has generated the buzz.
Both companies operate in super-hyped segments. BitNile is involved primarily in Bitcoin mining (among other businesses), and Mullen is an electric vehicle (EV) maker.
There's a lot of speculation about the potential futures of these companies. They're still in their early stages and under Wall Street's radar. Therefore, there's a lot of appeal for retail investors who are willing to bet these stocks will appreciate.
BitNile: Crypto Mining and Much More
Bitcoin mining operations currently account for 63% of BitNile's revenues. But the company, which has a current market cap of $63 million, also has data center and decentralized finance (DeFi) technology operations.
In addition, BitNile's chairman and founder, Milton Ault III, is the CEO of Ault Alliance, a company owned by BitNile that together manages five subsidiaries. On the Ault Alliance side, the company owns Gresham Worldwide in the military and defense segment, Digital Power and TurnOnGreen in the power supply and EV charging business, and AGREE in the real estate segment.
On BitNile's side, the company owns Alliance Cloud Services, a subsidiary that drives 70% of its crypto mining service.
Recently, NILE shares soared 64% after the company announced that one of its subsidiaries, TurnOnGreen, had entered into a security purchase agreement with Imperialis Holding Corp. The announcement excited investors because they will receive a dividend on TurnOnGreen's securities.
Mullen Automotive: An Electric Vehicle Promise
At the end of February, investors became aware of Mullen Automotive thanks to an article in CarBuzz magazine that praised the Mullen FIVE compact SUV. The article referred to the company as the “real deal” and said that Mullen could become a major competitor to Tesla(TSLA) - Get Tesla Inc Report, Lucid(LCID) - Get Lucid Group, Inc. Report, and Rivian(RIVN) - Get Rivian Automotive, Inc. Class A Report.
More recently, the focus on Mullen's stock intensified when the company announced that it will switch from lithium batteries to next-generation solid-state polymer batteries. These batteries are safer and more efficient.
A massive increase in MULN's trading volume has caused the share price to skyrocket. It's already up more than 78% since the end of February.
BitNile Owns a Chunk of Mullen
Investors who buy BitNile shares also get a stake in Mullen.
The holding company acquired 2,406.77 shares of Mullen at the end of last year. That's roughly 9.33% of the company's total shares.
BitNile's founder is moving further into the EV space, which he expects to be a lucrative investment. The company also owns an EV charging supply company, Digital Power, as well as TurnOnGreen, which is expected to go public.
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting Wall Street Memes)
