Beeline invests additional $225,000 in AI startup MagicBlocks

PROVIDENCE - Beeline Holdings, Inc. (NASDAQ:BLNE), whose stock has declined over 75% in the past year and currently trades at $1.41, has committed an additional $225,000 investment in MagicBlocks, a software company specializing in AI-powered sales and customer service solutions, according to a press release statement issued Thursday. According to InvestingPro analysis, the company maintains impressive gross profit margins of 70.73%.

Beeline, which originally incubated MagicBlocks, maintains a 47.6% ownership stake in the company. The investment is part of MagicBlocks’ current SAFE funding round. With a market capitalization of $19.14 million and a current ratio of 1.22, InvestingPro data shows the company operates with adequate liquidity to meet its short-term obligations.

The AI technology developed by MagicBlocks powers Beeline’s virtual customer service and sales agent called "Bob." According to the company, this AI agent has demonstrated conversion rates six times higher than human agents and generated $162,000 in new revenue during a limited release in the second quarter.

Since its launch in June, MagicBlocks has signed 18 clients across multiple industries, with more than half located outside the United States. The platform enables businesses to create customized AI agents for sales and service functions.

"AI speaks every language, not just English. Every company in the world needs sales and service—and most are looking for efficiency," said Nick Liuzza, CEO of Beeline, in the press release.

Beeline is also developing BlinkQC, an AI-driven quality-control product designed to simplify compliance with Fannie Mae requirements.

MagicBlocks was co-founded by CEO Jay Stockwell and Lead Developer Sean Clark. Stockwell stated, "We’re seeing strong international recognition as we perfect our product."

Beeline Holdings operates as a digital mortgage platform focused on homeownership services. While current market indicators suggest the stock is undervalued according to InvestingPro’s Fair Value analysis, investors should note that analysts expect net income to decline this year. For deeper insights into Beeline’s financial health and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Beeline Holdings reported significant financial activities and strategic changes. The company announced a preferred stock exchange, converting 8,356,151 shares of its Series F Convertible Preferred Stock and 68,951 shares of Series F-1 Convertible Preferred Stock into 8,425,102 shares of a newly created Series A Convertible Redeemable Preferred Stock. Additionally, Beeline Holdings raised $1.2 million through the sale of common stock, bringing the total raised since March to $14.5 million. The company also divested its majority stake in Bridgetown Spirits for $367,404, effectively removing Bridgetown Spirits as a subsidiary. In other developments, Beeline Holdings appointed Kristin Miller to lead BlinkQC, an AI-powered mortgage quality control solution designed to automate pre-closing audits. Furthermore, Beeline raised $6.5 million in new capital and reduced its debt by $5.3 million in the first half of 2025. These activities reflect Beeline Holdings’ ongoing efforts to optimize its financial and operational strategies.

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