HashingSpace Corp (OTCBB:HSHS) Can’t Get a Grip

HashingSpace Corp (OTCBB:HSHS)’s stock performance is not exactly stable. This sentence can easily be nominated for the “Understatement of the Century” award and it stands a pretty good chance of winning it.

At the end of last month, the ticker briefly touched the $6 per share mark. That’s a rather lofty price for a penny stock, but unfortunately, nobody could really explain why HSHS reached it. Furthermore, the volumes were all but non-existent which should have served as a warning of what was about to come. HSHS took a few massive blows and after four consecutive red sessions last week, it stopped at just $0.07. All this, despite an almost unbelievable amount of press releases coming out of the company headquarters.

The PR’s did manage to attract some interest, though. Along with a 49% drop, HSHS also logged a dollar volume of almost $140 thousand at the end of Friday’s session which means that people are putting their money on the line. And that means that some more investigation is in order.

The thing is, there isn’t a whole lot to investigate. HSHS as we know it is the product of a reverse merger that took place just two weeks ago. The shareholders of HashingSpace Corporation, a Delaware company working in the Bitcoin business, acquired control over Milestone International Corp, an OTC entity based in this lovely Russian block of flats, and thus, HSHS was born. HashingSpace, however, was established less than six months ago and it wants to enter a highly competitive and somewhat overcrowded market which means that estimating its chances of success is extremely difficult.

That, of course, doesn’t mean that the people behind it can’t be ambitious. As we mentioned already, Timothy Roberts, HSHS‘ CEO, and his colleagues have been pretty active on the PR front lately and a couple of days ago, they also published a video dedicated to their 5MW data center which, if everything goes according to plan, should be operational before the end of 2016. Some people will probably see the video and they’ll think: “It looks rather brilliant!”.

The same thing, by the way, was said by the investors who were receiving junk faxes about a penny stock company called Infinium Labs some years ago. The fax messages in questions claimed that the stock could go up by as much as 3,000%, but, surprisingly or not, this never really happened. The common thing between HSHS and Infinium is that both companies are run by one and the same person – Timothy Roberts.

A lot of people suffered the dire consequences of the pump for Infinium and the SEC decided to look for the person responsible for it. Apparently, the regulatory organs reckoned that Mr. Roberts himself is to blame and they filed some charges against him. Everything was eventually settled, but the legal proceedings did have their effect on Mr. Roberts’ reputation and when he tried to lure investors in with the ground-breaking idea behind Savtira several years later, there was no shortage of critics. Mr. Roberts said that he’ll sue the naysayers, but just a few short days later, his company filed for bankruptcy.

We have yet to find out whether HSHS will be surrounded by as much controversy as Mr. Roberts’ previous business endeavors. What we do know for sure is that at the moment, the stock is an extremely dangerous proposition. Back in May and June 2014, some investors bought a total of 1,090,000 shares of what was Milestone International at a price of $0.02 a piece. Thanks to the recent reverse merger and the accompanying 30 for 1 forward split, those investors could now be holding on to as much as 32,700,000 shares of HSHS common stock. And all of these were acquired for just $21,800.