Last week, shares of Chinese cloud computing provider Xunlei Limited (NASDAQ:$XNET) soared 20% after the company posted its earnings. This week, Xunlei is at it again.

In early trade Tuesday, Xunlei Limited shares jumped another 25%.

So What Happened?

The majority of the market is unsure of where this boost came from seeing as Xunlei has not reported any news since last week’s earnings report – which was not that good to start with.

It’s very likely that the company’s stock strength comes from Xunlei’s decision to transform itself into a company that focuses primarily on “exploring emerging blockchain technology.”

Now What is Going to Happen?

Investors seem to be pretty excited that Xunlei is interested in blockchain technology, but what they have not realized is that no one knows what kinds of “blockchain technology” the company is interested in and whether or not “exploring” it will ever turn into an actual (and profitable) business.

As of right now, based on Tuesday’s trading, we know for certain that Xunlei Limited is a company that sees growth in revenue but continues to have terrible margins.

Featured Image: twitter