AYRO to invest $100 million in stablecoin-related crypto tokens

NEW YORK - AYRO, Inc. (NASDAQ:AYRO), a micro-cap company with a market capitalization of $3.52 million, announced Tuesday the launch of a multi-token investment strategy targeting the acquisition of $100 million in crypto tokens connected to the stablecoin industry.

Bestselling author and crypto entrepreneur James Altucher will lead the initiative as the company’s new Digital Treasury Asset Manager. The company described the strategy as the first pure-play, multi-token investment vehicle designed to track growth in the stablecoin market.

"With over $27 trillion in stablecoin transactions in the past year, surpassing both Mastercard and Visa combined, and projections by Standard Chartered suggesting tenfold growth over the next three years, we believe this is the most compelling growth opportunity today," said Josh Silverman, AYRO Executive Chairman, according to the press release. InvestingPro data shows AYRO has been experiencing significant volatility, with a beta of 3.34, making this strategic pivot particularly notable.

The strategy will focus on tokens that support stablecoin issuance and infrastructure, aiming for both long-term appreciation and yield generation.

AYRO also announced a $7 million private placement financing through the sale of Series I convertible preferred stock and warrants. The financing, which includes investment from Altucher, is expected to close around August 7, subject to customary closing conditions. According to InvestingPro analysis, this financing comes at a crucial time as the company has been rapidly burning through cash, though it maintains a healthy current ratio of 2.2, indicating strong short-term liquidity. Investors can access 14 additional ProTips and comprehensive financial metrics with an InvestingPro subscription.

The company plans to change its name and ticker symbol to align with its new digital asset strategy and will provide updates on specific token acquisitions as the strategy is implemented. With the company’s next earnings report due on August 13, 2025, investors following this transformation can track AYRO’s progress through real-time updates and advanced analytics available on InvestingPro.

The stablecoin market, currently valued at approximately $250 billion, could reach $3.7 trillion by 2030, according to a statement attributed to Treasury Secretary Scott Bessent in the company announcement.

Palladium Capital Group, LLC and GP Nurmenkari Inc. are serving as non-exclusive placement agents for the private financing.

In other recent news, AYRO, Inc. announced that its board of directors approved a preferred share rights plan, which includes a dividend of one preferred share purchase right for each outstanding share. This move is part of a broader strategic initiative, as the company explores new directions, including stablecoin technology. Diveroli Investment Group has acquired a 9.9% stake in AYRO, signaling investor interest in the company’s strategic shift. Additionally, AYRO has regained compliance with Nasdaq’s minimum bid price rule, closing the matter with Nasdaq.

AYRO’s stockholders recently approved an increase in authorized common stock from 200 million to 1.2 billion shares, alongside other governance changes such as the election of six directors and the ratification of an independent accounting firm. The company reported a cash position of approximately $15.4 million as of March 31, 2025, providing it with flexibility to pursue strategic opportunities. These developments come after the passage of the GENIUS Act, which established regulatory frameworks for stablecoins in the U.S. financial system. AYRO continues to explore strategic alternatives to enhance stockholder value, focusing on both stablecoin technology and its core business growth.

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