Eurasia Mining PLC's SP Crash

Alexei Churakov submitted the sale of 27,400,000 ordinary shares worth £0.29 each, valued at a grand total of £7,946,00.00, on 26th January 2021. At 16:02 on 27th January 2021, an RNS confirmed the sale had been processed.

Alexei is still in possession of 12,282,774 ordinary shares. 

Why did Alexei Churakov sell 27,400,00 ordinary shares?
Alexei Churakov owns a company called Venus Garden Holdings. 20th November 2017, Venus Garden Holdings subscribed £76,336 for 27,262,814 ordinary shares in Eurasia Mining PLC.
Coincidently, this number is almost identical to the volume of shares sold. 
The reason for this may be that the potential buyer of Eurasia does not want another company or subsidiary having any ownership in Eurasia. 
Alexei has been able to retain 12,282,774 as these are directly ties with Eurasia and not purchased as a subsidiary.

What caused the share price to drop so quickly?

By Mr Churakov selling a proportion of his holding caused the sale price to drop accordingly. Due to the large volume of shares sold, this triggered a quantity of  investors' stop losses. The share price fell from £0.293 at an alarming rate nearly 50%.

Stop losses are automatic triggers to sell a set volume of shares if the sale price was to match or drop less than a stated price. It is an effective way to ensure that you do not lose any more money than you are willing to stake, but it has limitations and as we have seen today, a detrimental effect to the stock market.

With a snow ball effect of stop losses being triggered, the sale price dropped at a lighting speed until finally resting at £0.15.

At 16:25, the share price finally started to crawl upwards from the traumatic dive, but the trading day ceased after two price monitoring extensions at £0.18. Many investors saw the opportunity to purchase in-demand shares at a cheaper than expected price and this has aided the share price from falling any lower. 

What do we expect to happen now?

Quite simply, nobody knows. 

One opportunity is for the shares to be bought up by those still believing in Eurasia. This is how the share price increased on the final stretch of the trading day. 

However, as the news travels of the near 50% loss, many additional sells are expected upon open on 28th January 2021 which has the potential to drive the share price lower.

We do expect Eurasia to be releasing an RNS in response to the sudden drop to ease investors. We all hope that this RNS is released in response to news regarding the sale of Eurasia. The process has been discussed behind closed doors due to a non-disclosure agreement so we know very little about the sale or the parties involved at this time.

We have to remember, that when selling shares, there needs to be a buyer. For any transaction to occur, both parties must exist. What we may be seeing is the first of many transactions to aid the sale process. If this is the situation, then the share price will raise upon the completion of the transaction.