3E Network to expand mining operations amid stablecoin regulations

HONG KONG - 3E Network Technology Group Limited (NASDAQ:MASK), currently trading near its 52-week low at $0.96, announced Thursday its plans to expand its global mining farm construction and hosting business in response to recent stablecoin regulations in Hong Kong and the United States. According to InvestingPro analysis, the company appears slightly undervalued at current levels, with multiple indicators suggesting potential upside.

The company’s strategic shift follows the enactment of Hong Kong’s Stablecoin Ordinance and the U.S. GENIUS Act, which establish regulatory frameworks for stablecoin issuance and operations.

"These two milestone legislations establish a clear and explicit framework for the issuance and operation of compliant stablecoins," said Dr. Tingjun Yang, CEO of 3E Network, in a press release statement.

The company views stablecoins as a "vital bridge between traditional finance and the digital economy" and believes the new regulations will foster institutional trust and accelerate adoption.

As part of its expansion strategy, 3E Network plans to build a compliance framework to meet regulatory requirements across different jurisdictions while monitoring technological, market, and regulatory developments in the stablecoin sector.

3E Network, which began as a provider of integrated software and hardware solutions for property management and exhibition services, has since expanded its software offerings to various sectors including food establishments, real estate, and clean energy utilities.

The company’s business currently comprises two main portfolios: software development and exhibition and conference services.

In other recent news, 3E Network Technology Group Limited has completed the first tranche of its $7.4 million private offering. The company secured $2.2 million in the first installment of this offering, which involves senior secured convertible notes and accompanying warrants. This development is part of a larger plan initially announced on June 9. The company plans to use part of the proceeds from this offering to purchase Bitcoin. This strategic move indicates a financial maneuver aimed at diversifying its asset base. The private offering is structured in three tranches, with this being the first completed. Further tranches are expected as part of the full $7.4 million offering.

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