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SINGAPORE - Lion Group Holding Ltd. (NASDAQ:LGHL), a micro-cap financial services company with a market capitalization of $1.5 million, announced today the relaunch of its cryptocurrency operations as part of a strategic shift to broaden investor access to digital assets. According to InvestingPro data, the company’s stock has declined 85% over the past year, though analysts suggest it may be undervalued at current levels.
The company plans to integrate cryptocurrency exposure across its existing exchange-traded funds (ETFs), over-the-counter options, and total return swap products. According to the announcement, LGHL will pursue a layer-1 treasury strategy while developing access-driven products aligned with digital asset adoption trends. InvestingPro analysis reveals concerning metrics about the company’s financial health, with a weak overall score of 1.29 and a current ratio of 0.67, indicating potential liquidity challenges.
"Our strategic shift towards digital assets represents a foundational evolution in how we approach growth, capital allocation, and product development," said Wilson Wang, CEO of LGHL, in the press release statement.
The company indicated it aims to leverage protocols to complement its existing derivatives and structured trading businesses. Further details about the treasury strategy will be disclosed in a future announcement.
Lion Group Holding, which operates a trading platform offering total return swap trading, contract-for-difference trading, over-the-counter stock options trading, and futures and securities brokerage, noted that all proposed initiatives remain subject to applicable laws, regulations, and required approvals in relevant jurisdictions.
The company cautioned that the initiatives may be modified, delayed, or not occur as described. The announcement comes as financial institutions increasingly explore opportunities in digital asset markets amid evolving regulatory frameworks.
In other recent news, Lion Group Holding Ltd. has announced a significant adjustment to the ratio of its American Depositary Shares (ADSs) to Class A ordinary shares. The company will change the current ratio from one ADS representing fifty Class A ordinary shares to one ADS representing two thousand five hundred Class A ordinary shares. This adjustment, effective on March 26, 2025, is akin to a one-for-fifty reverse ADS split, aimed at helping the company regain compliance with Nasdaq’s minimum bid price requirement. For holders of certificated ADSs, this will necessitate an exchange for new ADSs, while uncertificated ADS holders will have their shares automatically adjusted. Lion Group has confirmed that no fees will be charged during this exchange process, and fractional entitlements will be sold with net proceeds distributed to holders. The company has clarified that this change will not impact the underlying Class A ordinary shares, as no new shares will be issued or canceled. While Lion Group anticipates an increase in the trading price of its ADSs following the adjustment, it has cautioned that there is no guarantee the price will rise fifty times the pre-change level.
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