Pop Culture Group, a relatively obscure media company based in China, has made headlines with its announcement to acquire 1,000 bitcoins, prompting a significant surge in its U.S. shares. On Thursday, the company’s stock soared by 46% following the declaration of its ambitious cryptocurrency strategy.
The company plans to establish a $100 million “Crypto Pop Fund” by the end of the next year. This initiative, unveiled on September 18, aims to enable Pop Culture to amass a diversified portfolio that includes not only Bitcoin but also Ethereum (ETH) and Hyperbot (BOT). These investments are intended to support the development of Web3 technologies and align with the company’s core entertainment business.
Pop Culture Group revealed that it had already invested $33 million to acquire bitcoins, with CEO Huang Zhuoqin emphasizing that this strategic venture marks the beginning of a “global Web3 pan-entertainment super ecosystem.” The company has its roots in the Cayman Islands, but its primary operations are stationed in China, where it specializes in producing television and film content as well as offering artist management services.
Having listed its shares on the Nasdaq in June 2021, Pop Culture’s market capitalization stood at $30.6 million as of Thursday. The company’s recent announcement has sparked an “extremely bullish” sentiment among retail investors on Stocktwits, rating CPOP stock at 94 out of 100. However, the stock later experienced some pullback during extended trading hours.
Pop Culture’s shift towards cryptocurrency investment is reminiscent of broader trends within the corporate landscape, as many companies have begun reallocating their resources to embrace digital currencies. Notable U.S. firms like GameStop have also initiated cryptocurrency reserve strategies, aiming to leverage the growing demand and soaring prices in the digital asset market.
Year-to-date, CPOP stock has experienced a remarkable increase of 75%, indicating heightened investor interest and confidence in the company’s directions. This strategic pivot into the realm of cryptocurrency may redefine the company’s future trajectory and establish it as a notable player in the intersection of entertainment and digital finance.
