Shares of Xunlei (NASDAQ:XNET) rocketed higher on Monday following comments by President Xi Jinping of China that were supportive of blockchain technology. The stock was up 30.7% at 12:15 p.m. EDT today.
Late Friday, China's state-owned Xinhua News Agency reported that Xi said China will boost investment in blockchain technology. Those comments came after he chaired a study session last week focused on developing the blockchain industry.
Shares of Xunlei, which describes itself as "a leading innovator in shared cloud computing and blockchain technology in China," benefited on Monday from Xi's comments. It derives most of its revenue from cloud computing services, other internet services like streaming, and subscriptions. The company does not break out blockchain-related revenue.
Xunlei has been riding the hype surrounding bitcoin and blockchain for years. The stock exploded higher in late 2017, right along with the price of bitcoin. That rally was quickly undone, with shares tumbling along with the digital currency. Even after Monday's surge, the stock is down 75% from that bitcoin-fueled high.
The hype appears to be back, but it's unlikely to end any differently this time around for investors.