Investors Appear to Think Bluesky Crypto Firm Is the Bluesky Social Network

Bluesky is having a moment. No, not that Bluesky, the other one.

The Canadian crypto company Bluesky Digital Assets Corp has seen its stock take off, in a manner of speaking, over the past week as investors buy up what they almost certainly think are shares of the other Bluesky, the social media platform that has been scooping up X-iles and recently hit 20 million users. First spotted by Bloomberg, Bluesky Digital Assets Corp’s stock value has increased eightfold since the beginning of November.

On November 1, it was trading at 5 cents a share. As of Wednesday, it was going for 41 cents a share, having come down from a peak of 49 cents last week. Given that it’s a penny stock, it’s unlikely anyone is getting rich off the misunderstanding, unless some intrepid meme stock junkies made a big bet that their fellow investors wouldn’t do an iota of homework.

What exactly does Bluesky Digital Assets Corp do? Vague crypto things. It offers a “complete ecosystem of value creation” with a nice helping of “advanced development of proprietary based technology inclusive of advanced Artificial Intelligence (“AI”) based methods for the creation of cutting edge intelligent solutions.”

Bloomberg reported that Bluesky Digital Assets Corp released a press release stating that it “wishes to confirm that the Corporation’s management is unaware of any material change in the Corporation’s operations that would account for the recent increase in market activity.” That press release appears to have been removed from the company’s website.

The social media platform Bluesky is not publicly traded. Created by Twitter founder Jack Dorsey, Bluesky began growing in popularity after Elon Musk bought Twitter, renamed it X, unceremoniously gutted its staff, and made a series of terrible decisions that drove users to seek out other social media platforms.

Bluesky enjoyed sporadic growth spurts over the past two years, reaching 12 million users as of October 18. But the platform has really taken off in the weeks following Donald Trump’s victory in the U.S. presidential election which, new research suggests, was preceded by months of X’s algorithm heavily promoting Musk and conservative viewpoints.

For now, Bluesky relies on investor capital to keep the lights on and hasn’t publicly announced a plan for how it intends to make a profit.

Since Musk bought Twitter for $44 billion in 2022, the company’s value has tanked to around $9.4 billion, according to a recent estimate from the investment firm Fidelity.