Innovation Beverage Group Limited Ordinary Shares (NASDAQ:IBG) shares are up on Wednesday as the company provided an update on its merger with BlockFuel Energy.
Per a press release dated September 23, Innovation Beverage signed a non-binding LOI to acquire BlockFuel Energy in a reverse triangular merger, shifting IBG into an oil-and-gas-powered bitcoin mining/data center play, with BlockFuel owners set to control about 90% of the post-deal company.
A fairness analysis pegged the combined entity's equity value at roughly $220 million–$343 million, with closing contingent on financing, due diligence, shareholder/regulatory approvals, and Nasdaq clearance.
Today, Innovation Beverage said that the companies are on track to complete their merger in the first quarter of 2026, pending customary approvals.
Integration planning is underway, focusing on building a vertically integrated platform that monetizes hydrocarbons through both conventional sales channels and potential digital energy applications.
In addition, ten wells are currently back in production, with seven more expected to resume operations by the end of the month, significantly increasing active production.
BlockFuel Energy anticipates completing its first oil and gas sales in February 2026, with initial revenues expected before the end of the first quarter.
Technical Analysis
The stock is currently trading 25.3% below its 20-day simple moving average (SMA) and 64.9% below its 100-day SMA, indicating a bearish trend in the short to medium term. Over the past 12 months, shares have decreased by 80.87%, and they are currently positioned closer to their 52-week lows than highs.
The RSI is at 33.35, which is considered neutral territory, while the MACD is above its signal line, indicating bullish momentum. The combination of neutral RSI and bullish MACD suggests mixed momentum for the stock.
- Key Resistance: $5.00
- Key Support: $3.50
The recent merger news with BlockFuel Energy is significant as it positions Innovation Beverage Group to enhance its operational capabilities and revenue streams, particularly in the energy sector. This strategic move could provide the company with a competitive edge in both beverage and energy markets.
Earnings & Analyst Outlook
The countdown is on: Innovation Beverage is set to report earnings on February 24, 2026.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Innovation Beverage Group Limited Ordinary Shares, highlighting its strengths and weaknesses compared to the broader market:
– Momentum Rank: 0.42 — Stock is underperforming the broader market.
The Verdict: Innovation Beverage Group Limited Ordinary Shares's Benzinga Edge signal reveals a classic ‘High-Flyer' setup. While the momentum (0.42) confirms the weak trend, the lack of other rankings indicates that the stock may be struggling to gain traction in the current market environment.
IBG Price Action: Innovation Beverage Group shares were up 3.36% at $4.00 at the time of publication on Wednesday. The stock is trading near its 52-week low of $3.26, according to Benzinga Pro data.
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