Shares in Eightco Holdings, an e-commerce inventory management platform, surged dramatically by nearly 3,009% on Monday, following the announcement of a strategic move to acquire and hold Worldcoin, the cryptocurrency associated with Sam Altman’s innovative eye-scanning digital identity initiative. The stock closed at $45.08, a remarkable increase from its previous close of $1.45 on Friday, although it later dipped nearly 6% in after-hours trading to $42.40.
The company disclosed plans for a share sale aimed at raising approximately $250 million to implement what it described as a “first-of-its-kind Worldcoin treasury strategy.” This offering involves a private placement of 171.23 million common shares at a price of $1.46 each. Bridging its base with notable crypto involvement, BitMine Immersion Technologies has also made headlines by acquiring 13.7 million common shares in Eightco for $20 million. BitMine is recognized for holding the largest Ether (ETH) reserves among publicly traded companies.
Eightco is part of a growing trend among non-cryptocurrency firms venturing into cryptocurrency accumulation, a development that has sparked concerns regarding the operational soundness of such companies as competition increases in the crypto market.
The anticipated $250 million capital raise is set to occur on Thursday, with backing from significant names like the World Foundation, Kraken, and FalconX. The funds are earmarked primarily for purchasing Worldcoin (WLD) to serve as Eightco’s main treasury reserve asset, while the company plans to consider Ether (ETH) as a secondary asset. Additionally, it announced plans to change its Nasdaq ticker symbol to “ORBS,” a nod to the eye-scanning technology deployed by Worldcoin’s issuer, World Network.
Sam Altman, co-founder and CEO of OpenAI, is the brains behind Worldcoin, which aims to verify human identity online through iris scans. Users are rewarded with Worldcoin and access to an ecosystem of partner companies in return for their participation. However, the project has faced scrutiny from regulators due to privacy concerns, leading to restrictions and outright bans in various jurisdictions.
“If we succeed on our mission, World could become the largest network of real people online, fundamentally changing how we interact and transact throughout the Internet,” Altman remarked.
Adding to the excitement surrounding Eightco, the company appointed Dan Ives, a prominent figure in tech research from Wedbush Securities, as its new chairman. Ives has a track record of astute observations in the tech sector and has predicted a prolonged bull market for the industry. His involvement is seen as a significant step in the evolution of AI and online identity verification. He stated, “The future of AI requires World to lead the way in this AI-driven Fourth Industrial Revolution.”
In a correlated market movement, Worldcoin’s value surged by 49.2% over the past 24 hours due to Eightco’s treasury announcement, trading at $1.54 with a notable increase of 80.5% over the past week. Earlier this year, the token hit an all-time low of around 58 cents but has recently experienced a revival alongside the broader cryptocurrency market, though it remains around 87% lower than its peak of $11.74 registered in early March 2024.
