Takung Art soars 712% in 4 days as digital-art trading booms following landmark NFT auction

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  • Shares of Takung Art have soared 712% in the past four days, before paring some gains.
  • On Wednesday alone shares rose 277% as the buzz around non-fungible tokens, or NFTs, continues to grow.
  • Takung Art turned in revenues of just $US685,465 ($883,129) for the three months that ended in Sept. 2020.
  • See more stories on Insider’s business page.

Shares of the Hong Kong-based digital-art trading platform Takung Art have soared as much as 712% in the past four days from Friday’s closing price of $US4.09 ($5) per share after a landmark non-fungible token (NFT) auction brought attention to the sector.

Takung Art’s stock climbed 277% on Wednesday alone.

Shares of the Hong Kong-based firm started their historic run after the digital artist Beeple sold a digital painting titled “Everydays: The First 5000 Days” for nearly $US70 ($90) million in a Christie’s auction last week.

The sale brought a wave of new attention to the world of NFTs, where investors can trade digital certificates of ownership of everything from fine art to trading cars. Sotheby’s auction house is now also getting in on the NFT action following Christie’s watershed Beeple auction.

Takung Art is a holding company that was formerly known as Cardigant Medical. These days it operates an on-line listing and trading service that allows artists, art dealers, and art owners to trade their holdings in an open market with investors.

The company is focused on the Chinese market and operates through it’s main website TakungOnline.com. As one of the only public companies with exposure to the NFT space, Takung has attracted a lot of investor attention.

Still, according to the company’s recent SEC filings, Takung turned in revenues of just $US685,465 ($883,129) for the three months that ended on September 30, 2020.

The company did manage to turn a small profit, but that was only due to other income which came from “rising from the appreciation of the Renminbi against the US dollar.”

The lack of consistent revenue or earnings hasn’t stopped investors from trying to take advantage of the NFT boom through Takung, however. Shares of the digital art platform continue to rise.

The stock traded up 16.05% as of 11:10 a.m ET on Thursday.

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