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SINGAPORE - Lion Group Holding Ltd. (NASDAQ:LGHL), a micro-cap company with a market capitalization of $1.5 million and currently trading at what InvestingPro analysis suggests is an undervalued level, announced Wednesday it has secured a $600 million facility from ATW Partners to support the launch of its cryptocurrency treasury initiative focused on next-generation blockchain assets.
The company plans to establish a treasury reserve anchored by Hyperliquid (HYPE), Solana (SOL), and Sui (SUI) tokens. According to the announcement, LGHL will custody and stake its SOL and SUI assets with validators managed by BitGo Trust Company, Inc.
"Hyperliquid represents a natural extension of LGHL’s existing derivatives business into decentralized markets," said Wilson Wang, CEO of LGHL, in a press release statement. With a beta of 2.31 and significant price volatility, InvestingPro data shows the stock has declined over 70% year-to-date.
The company has partnered with BitGo, which will provide custody services for the digital assets. Mike Belshe, CEO of BitGo, stated that the facility "reflects a clear signal that institutional investors are accelerating their diversification into next-generation blockchain ecosystems."
LGHL also announced it is evaluating secondary listings on the Tokyo Stock Exchange and Singapore Exchange to broaden its global reach.
The first closing of $10.6 million is expected within the next 48 hours, with Chardan acting as the sole placement agent for the facility.
This initiative marks the relaunch of LGHL’s cryptocurrency operations and represents a strategic shift toward digital assets for the company, which currently operates a trading platform offering total return swaps, contract-for-difference trading, over-the-counter stock options, and futures and securities brokerage services. InvestingPro analysis indicates concerning financial health metrics, with a current ratio of 0.67 and an overall financial health score rated as WEAK. Subscribers can access 10+ additional ProTips and detailed financial metrics.
In other recent news, Lion Group Holding Ltd. has announced the relaunch of its cryptocurrency operations. This strategic shift aims to broaden investor access to digital assets, integrating cryptocurrency exposure across its existing financial products. The company plans to pursue a layer-1 treasury strategy while developing products aligned with digital asset adoption trends. Lion Group indicated that further details about this strategy will be disclosed later, and all initiatives are subject to applicable laws and regulations. Additionally, Lion Group has announced a forthcoming change to the ratio of its American Depositary Shares (ADSs) to Class A ordinary shares. The adjustment will alter the current ratio from one ADS representing fifty Class A ordinary shares to one ADS for two thousand five hundred Class A ordinary shares, effective March 26, 2025. This change is intended to help Lion regain compliance with Nasdaq’s minimum bid price requirement. The company has stated that the ADS Ratio Change will not affect the underlying Class A ordinary shares.
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