Street Calls of the Week
NEW YORK - Allied Gaming & Entertainment, Inc. (NASDAQ:AGAE) has made an initial investment in Bitcoin and Ethereum as part of its corporate treasury management strategy, according to a company press release.
The investment represents AGAE’s first step toward incorporating cryptocurrency into its balance sheet and establishing groundwork for the company’s blockchain and Real World Asset (RWA) tokenization initiatives.
"We see cryptocurrency not only as a store of value, but also as a strategic building block for the future of our business," said Yangyang (James) Li, CEO of AGAE.
The global experiential entertainment company plans to expand its digital strategy beyond this initial cryptocurrency purchase. Future initiatives outlined in the announcement include developing blockchain-based payment options across its portfolio, creating proprietary tokenization models for real-world assets such as entertainment rights and revenue streams, and integrating stablecoins and utility tokens within its digital ecosystem.
AGAE’s move follows a trend of companies adding digital assets to their corporate treasuries as institutional adoption of cryptocurrencies continues to grow.
The company, which operates in the gaming, entertainment and digital content sectors, stated that this investment aligns with its vision to connect people through gaming, entertainment, and innovative financial technologies.
In other recent news, Allied Gaming & Entertainment Inc. has regained compliance with Nasdaq Listing Rule 5620(a) following a decision by the Nasdaq Hearings Panel. The company had faced potential delisting due to non-compliance with the requirement to hold an annual shareholder meeting, but successfully appealed the decision. Additionally, the United States District Court for the Central District of California has granted preliminary relief to Allied Gaming in its lawsuit against Knighted Pastures, LLC, related to alleged securities violations. The court’s order enjoined the vote of directors at Allied’s annual meeting, reinforcing the company’s legal stance. Amid these developments, Allied Gaming has appointed Yangyang (James) Li as its new CEO, while former CEO Yinghua Chen transitions to a senior strategic role. The company had previously received a delisting notice from Nasdaq for failing to hold an annual meeting and not filing its Q1 2025 Form 10-Q on time. Allied Gaming has also filed a lawsuit against Knighted Pastures, alleging securities law violations, underscoring ongoing legal challenges. These recent developments highlight significant leadership and legal changes within the company.
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