It is not uncommon for bankrupt companies to see their stock prices rise unexpectedly, as investors speculate on the potential for a turnaround or other favorable outcome. This can happen in any industry, including the cryptocurrency mining sector.
Cryptocurrency mining involves using specialized computer hardware to verify transactions on a blockchain and earn rewards in the form of cryptocurrency. The profitability of mining can fluctuate based on a number of factors, including the price of the cryptocurrency being mined and the cost of electricity and other resources needed to run the mining operation.
In the case of Hertz, the car rental company's stock price soared in the months following its bankruptcy filing in May 2020, despite the fact that the company was facing significant financial challenges. Some investors saw the bankruptcy as an opportunity to buy shares at a discounted price, while others hoped that the company would be able to reorganize and emerge from bankruptcy in a stronger financial position.
It is important to note that investing in bankrupt companies carries a high level of risk, as there is no guarantee that the company will be able to successfully restructure and emerge from bankruptcy. Investors should carefully consider the potential risks and uncertainties before making any investment decisions.