“What’s in a name? That which we call a rose by any other name would smell just as sweet.”
A beverage company might be wishing it didn’t share a name with a cryptocurrency platform after being mistakenly linked.
What Happened: Shares of Celsius Holdings, Inc. (NASDAQ:CELH) were down double digits Monday as the price of Bitcoin (CRYPTO: BTC) and other cryptocurrencies fell related to the pausing of withdrawals and transfers between accounts by cryptocurrency lending firm Celsius.
The problem is of course that Celsius Holdings doesn’t offer Bitcoin trading or anything to do with cryptocurrency. Instead, the company sells calorie-burning beverages and was likely the victim of mistaken identity by investors.
Crypto lending firm Celsius said it was taking steps necessary to protect users.
“We are announcing that Celsius is pausing all withdrawals, swap, and transfers between accounts. We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations,” crypto company Celsius said.
Beverage company Celsius released no news or earnings on Monday. Shares fell double-digits Monday as peer companies Monster Beverage Corp (NASDAQ:MNST), Coca-Cola Co (NYSE:KO) and PepsiCo, Inc. (NYSE:PEP) all saw small moves and nothing drastic happened in the beverage sector.
The last news from Celsius was the company’s first quarter, which saw revenue growth of 167% to $133.4 million. An increase of 395% year-over-year in the direct store delivery network was among the contributing factors to the strong quarterly growth. Celsius products are available in more than 140,000 stores in the U.S.
Volume for Celsius Holdings also topped 1.15 million shares on Monday, ahead of the company’s average daily trading volume for the last 100 days.
Related Link: Why Is Celsius Token Crashing? Ethereum's DeFi Vs. CeFi Lending, Explained
Why It’s Important: Confusing company names with another can often result in large movements as investors try to get a piece of a company moving on news.
Penny stock Luminar Media Group Inc (OTC:LMGR) rocketed higher in confusion to lidar company Luminar Technologies Inc (NASDAQ:LAZR) after the latter completed its SPAC merger and began trading under its new name in late 2020.
Shares of Auris Medical Holding and Oculus VisionTech Inc (OTC:OVTZ) also traded higher in two separate occasions when private companies with similar names were announced as acquisitions by Johnson & Johnson (NYSE:JNJ) and Meta Platforms Inc (NASDAQ:META), respectively.
CELH Price Action: Celsius Holdings shares closed down 10% Monday to $55.34. Shares are rebounding on Tuesday, up 4.90% to $57.29.
