Street Calls of the Week
NEW YORK - BitGo, a digital asset infrastructure company, has formed a strategic partnership with StableX Technologies, Inc. (NASDAQ:SBLX), a micro-cap company with a market value of $5.65 million, according to a press release statement issued Tuesday. According to InvestingPro data, SBLX stock has experienced significant volatility, with the price falling nearly 57% over the past year.
Under the agreement, BitGo Trust Company will serve as the institutional-grade custodian for StableX’s digital assets, while BitGo’s affiliated trading platforms will facilitate StableX’s planned acquisitions of various digital assets through its OTC desk.
The partnership follows StableX’s announcement of its goal to purchase $100 million in crypto tokens that power the stablecoin industry. This ambitious target comes as InvestingPro analysis shows the company faces challenges with cash burn and declining revenues, with sales dropping 98% in the last twelve months. InvestingPro subscribers have access to 15 additional key insights about SBLX’s financial position.
"BitGo is excited to provide the infrastructure that is designed to keep forward-looking digital asset strategies, like StableX’s, safe and compliant," said Mike Belshe, CEO and Co-Founder at BitGo.
Joshua Silverman, Executive Chairman of StableX, stated that using a regulated, institutional-grade custodian would improve the company’s risk management and position it to leverage new opportunities in the crypto economy.
The collaboration aims to accelerate innovation and diversify StableX’s treasury with alternative assets while maintaining secure infrastructure and market access. With an EBITDA of -$11.8 million and a weak overall financial health score of 1.23 according to InvestingPro, the success of this strategic initiative could be crucial for the company’s future performance.
BitGo, founded in 2013, provides custody, wallets, staking, trading, financing, and settlement services from regulated cold storage. StableX Technologies focuses on the acquisition and development of stablecoin assets, infrastructure, and related technologies.
In other recent news, StableX Technologies, Inc. has made several notable announcements. The company reported a strategic partnership with BitGo to manage its $100 million digital asset treasury strategy. BitGo Trust Company will act as the institutional-grade custodian, providing regulated cold storage and compliance oversight. Additionally, StableX has initiated its first token purchase with FLUID as part of its strategy to invest in the stablecoin industry, aiming for up to $100 million in crypto token acquisitions.
Shareholders of StableX Technologies approved the issuance of common stock underlying Series I Preferred Stock and warrants, potentially amounting to or exceeding 20% of the company’s outstanding common stock prior to the transaction. In another development, StableX appointed Stephano Slack LLC as its new independent auditor, following the dismissal of CBIZ CPAs P.C. These decisions were made to enhance the company’s financial and strategic positioning.
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