What happened

Shares of the China-based cloud-computing company Xunlei (NASDAQ:XNET) jumped as much as 12.6% on Friday -- but the stock is up about 5% at the time of this writing. Bullishness toward the stock follows Bloomberg's look at Xunlei's cryptocurrency project.

As Bloomberg states, Xunlei's cryptocurrency ambitions seem to be getting attention amid bitcoin hype. Calling Xunlei the "hottest stock on the Nasdaq," the report may have shed some fresh light on Xunlei's "Wanke coin mining" project.

A stock price showing a stock moving higher

Image source: Getty Images.

So what

If Xunlei's cryptocurrency project really does represent the reason for the stock's move higher recently, investors should be raising eyebrows. Even Xunlei admitted in its recent earnings release that it's just "exploring" emerging blockchain technology. Its business is primarily based on internet service-provider and cloud-computing services. 

To its credit, Xunlei's revenue is increasing rapidly, up 15.6% year over year in its most recent quarter. 

Xunlei stock is up more than 300% in the past month.

Now what

Xunlei's vice president of marketing told Bloomberg the company hopes its investors are interested in its company "because of the future of 'shared computing' and their trust in our new management team, rather than for speculation."

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.