Shares of digital advertising company QMMM Holdings experienced a meteoric rise of over 2,300% at one point during the trading day Tuesday, following a significant announcement regarding the establishment of a $100 million digital assets treasury. The company, which is listed on the Nasdaq under the ticker symbol QMMM, ultimately closed the day at $207 per share, marking an impressive increase of approximately 1,736% from the opening price.
CEO Bun Kwai shared insights into the company’s ambitious plans. “The global adoption of digital assets and blockchain technology is accelerating at an unprecedented pace,” he stated. He emphasized that QMMM’s entry into this emerging sector reflects a commitment to innovation and a vision of integrating the digital economy with tangible real-world applications.
QMMM’s treasury initiative is set to kick off with investments in Bitcoin, Ethereum, and Solana, alongside a focus on high-quality cryptocurrency assets and Web3 infrastructure projects. However, details on how the firm intends to finance this venture remain unclear. A recent Securities and Exchange Commission (SEC) filing indicated that QMMM had only $497,993 in cash and cash equivalents at the end of its last fiscal year on September 30, 2024, alongside a net loss of approximately $1.58 million during the same period.
In addition to this treasury, QMMM aims to broaden its investment strategy to include global premium equity assets that align with the company’s strategic vision. A representative from QMMM has yet to respond to inquiries regarding the criteria for selecting additional investments or the funding sources for the new treasury.
The Hong Kong-based firm is also looking to enhance its offerings by incorporating blockchain technology and artificial intelligence into its platforms. These advancements are intended to assist investors in making informed decisions, efficiently managing decentralized autonomous organizations (DAOs), and enhancing experiences within the metaverse.
Kwai underlined the goal of these initiatives, stating, “Our cryptocurrency initiatives, combined with our expertise in AI and digital platforms, are designed to create sustainable value for our stakeholders while reinforcing our role as a forward-looking technology company.”
Despite the exuberance surrounding the announcement, QMMM’s stock saw a correction, dropping nearly 25% in after-hours trading to around $156.31.
