QMMM enters cryptocurrency sector with $100 million treasury plan

HONG KONG - Digital media advertising company QMMM Holdings Ltd. (NASDAQ:QMMM) announced Tuesday its expansion into the cryptocurrency sector, with plans to establish a $100 million cryptocurrency treasury focusing on Bitcoin, Ethereum, and Solana. The company, currently valued at approximately $645 million, has seen remarkable growth with a 780% year-to-date return, according to InvestingPro data.

The Hong Kong-based company said it will integrate artificial intelligence and blockchain technology to create a decentralized data marketplace that connects data providers and consumers. The platform will utilize AI-driven analytics to process data for cryptocurrency traders. While QMMM maintains strong liquidity with a current ratio of 7.11, InvestingPro analysis reveals challenges with profitability, showing a gross profit margin of just 0.84%.

According to the company, the ecosystem will support automated agents capable of answering user queries, managing DAO treasuries, enhancing metaverse experiences, detecting vulnerabilities in smart contracts, and assisting in code development.

"The global adoption of digital assets and blockchain technology is accelerating at an unprecedented pace," said Bun Kwai, CEO of QMMM, in a press release statement.

The company stated its investment allocations will focus on cryptocurrency assets with long-term growth potential, Web3 ecosystem infrastructure projects, and global equity assets aligned with its strategic vision. With more cash than debt on its balance sheet and 12 additional key insights available on InvestingPro, QMMM appears positioned for this strategic expansion despite current profitability challenges.

QMMM Holdings, which provides digital media advertising and virtual avatar technology services, said it has worked on over 500 commercial campaigns through its operating subsidiaries ManyMany Creations and Quantum Matrix.

The announcement represents a significant diversification for the company, which has primarily operated in the digital media and virtual technology space prior to this cryptocurrency initiative.

In other recent news, QMMM Holdings announced the pricing of its public offering, aiming to raise $8 million by selling 40 million ordinary shares at $0.20 each. The offering is expected to close on June 23, 2025, pending standard closing conditions. This move is anticipated to generate gross proceeds before accounting for placement agent fees and other expenses. Additionally, QMMM Holdings reported significant changes to its board of directors. Chun San Leung and Chan Anthony Saikit resigned from their positions as directors, both citing personal reasons for their departure. The company clarified that there were no disputes or disagreements involved in these resignations. These recent developments reflect ongoing changes within QMMM Holdings, which investors may want to consider.

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