Shares of Mogu Inc. (NYSE: MOGU), a China-based online fashion and lifestyle platform, saw its shares jump more than 190% Thursday morning after the company announced its board had approved a plan to invest in digital assets.
According to the press release, the board said the company coils use up to $20 million of its funds to buy assets, mainly Bitcoin, Ethereum, and Solana, along with related investment products and securities.
The board said this move could help diversify its treasury holdings and strengthen the company’s abilities to work on new AI products and services.
“The board believes that by integrating digital assets into its core assets, the Company can diversify not only its treasury holdings but also its operational capabilities essential for next-generation AI products and services,” Mogu said in a press release.
The board also authorized Chairman Chen Qi to decide when and how much digital currency to buy.
MOGU Surge 110% in 24 Hours
Shortly after the release, MOGU stock jumped to $5.25 per share. That was about 110% before dropping. Currently, the token is trading for $4.53, which is still up 81% with a market cap of about $45 million.
Trading volume also surged, with more than 60 million shares exchanged, compared with the average daily volume of around 16,000, according to Yahoo Finance.
Mogu, which went public in 2020. It runs an online platform in China for fashion and lifestyle. The company works with key opinion leaders, also called KOLs, to attract customers and grow its audience.
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