Mode Global (MODE) shares plunge over 16%: Should you buy it now?

Highlights

  • Fintech company Mode Global’s shares plunged over 16 per cent on Friday after it backtracked on its recent affiliate product announcement.
  • The company had said over 40 companies, including Boots and other retailers, were part of its new bitcoin cashback program, which is a standalone affiliate product
  • Boots, Ocado and Homebase denied the claims which led Mode to issue a clarification statement today

London listed fintech company Mode Global Holdings PLC (LON: MODE) shares dropped sharply by over 16 per cent on Friday after the company backtracked on its partnership with several retail companies.

Some of those retail companies included health and beauty retailers like Boots and online grocery solutions company Ocado (LON: OCDO) over its new bitcoin cashback affiliate product.

Mode Global Holdings PLC share price performance

Main market listed Mode’s shares were trading at GBX 33.50, down by 16.25 per cent on 19 November at 12:58 PM BST. Comparatively, the financial services sectoral index was at 11,057.52, down by 0.10 per cent.

MODE share price and volume

(Image source: Refinitiv)

The company’s market cap stands at £36.58 million as of 19 November.

Mode Global’s clarification

The company had previously made an announcement on 18 November that about 40 retailers or more, which included Boots and Ocado were part of its new program. It shares jumped by over 15 per cent following the announcement.

However, Boots, Ocado and Homebase, a DIY retail company, all denied their involvement in the scheme, later that day.

The fintech company subsequently issued a clarification statement on 19 November, stating certain companies had withdrawn from its standalone affiliate product. The company still stated that over 40 retail companies had accepted Mode onto their affiliate programme. The standalone product is expected to launch in Q2 2022.

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