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Elon Musk tweet praising techno song sparks brief 55% spike in obscure gold miner with similar name

Feb 4, 2021, 23:30 IST
Business Insider
SpaceX CEO Elon MuskHannibal Hanschke-Pool/Getty Images
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Elon Musk's tweets are continuing to move obscure stocks as traders pile in.

This time on Thursday, the stock in question was Sandstorm Gold, a $1.3 billion gold miner that trades on the New York Stock Exchange and is based in Canada.

Sandstorm Gold surged as much as 55% in pre-market trades on Thursday after Elon Musk tweeted, "Sandstorm is a masterpiece."

Musk was likely referring to the 2000 hit techno song "Sandstorm" by Darude. But traders didn't seem to care, as they pushed shares of Sandstorm Gold to a high of $10.06.

The gains were short lived, with the stock trading down 1% by the time the market opened for regular trading hours at 9:30 AM.

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In response to Musk's tweet, Darude tweeted, "Man, IF this was a reference to my track, THANK YOU! If not, I'll just get my coat..."

The frenzy in shares of Sandstorm Gold is similar to last month's advance in Signal Advance, which surged nearly 12,000% after Musk tweeted his support for the similarly named private messaging service, Signal.

Musk's Thursday tweets also moved a cryptocurrency after he tweeted his support for Dogecoin, which surged 59% in Thursday trades.

Musk posted an edited image from the movie "Lion King" that showed himself holding up the Doge meme. He followed up the photo with the simple message "Dogecoin is the people's crypto."

With 45 million Twitter followers, Musk's power to move markets is clear.

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Read more: Investors are flocking to trade Dogecoin and other hot digital tokens with no Robinhood-style restrictions on Voyager. The CEO tells us why Bitcoin will hit $100,000 this year - and 3 other cryptocurrencies to watch

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