Shares of Mogu Inc., a Chinese online fashion and lifestyle platform, surged following the announcement of new investments in digital assets.
Investment Announcement
Mogu Inc. (NYSE: MOGU) announced that its board approved a plan to invest up to $20 million in digital assets, including Bitcoin, Ethereum, and Solana. This decision is expected to help diversify the company's treasury holdings and enhance its capabilities in developing new AI products and services.
Market Reaction
Following the announcement, MOGU shares jumped to $5.25 each, marking a 110% increase before slightly decreasing. Currently, they are trading at $4.53, still up 81% compared to previous levels. The trading volume exceeded 60 million shares, significantly higher than the typical daily volume of 16,000 shares.
About Mogu Inc.
Mogu Inc. went public in 2020 and operates an online platform in China for fashion and lifestyle. The company collaborates with key opinion leaders (KOLs) to attract customers and grow its audience.
Mogu Inc.'s strategy to invest in digital assets may play a significant role in keeping the company relevant amidst rapid changes in the technology and financial sectors.
