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LAKEWOOD, NJ - Reliance Global Group, Inc. (NASDAQ:RELI) announced Wednesday it has completed its first digital asset purchase, acquiring Ethereum as part of its recently launched Digital Asset Treasury (DAT) initiative. The company, currently trading near its 52-week low of $0.68 compared to its high of $5.11, has seen its market capitalization decrease to $3.05 million.
The company plans to build a diversified digital asset portfolio that may include Bitcoin, Ethereum and Solana, funded through cash reserves and approved corporate financing tools. The initiative aims for long-term capital appreciation through blockchain-based participation. According to InvestingPro analysis, the company faces challenges with rapid cash burn and weak profit margins, making this diversification strategy particularly noteworthy. For detailed insights on RELI’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
To support this strategy, Reliance has formed a Crypto Advisory Board (CAB) to provide expertise on treasury management, blockchain integration, and governance practices as the company expands into digital assets.
"This first Ethereum transaction is an important milestone for Reliance as we expand into digital assets," said Ezra Beyman, Chairman and Chief Executive Officer of Reliance Global Group, in a press release statement.
The company indicated it will continue purchasing Ethereum and other digital assets incrementally while maintaining a disciplined approach to capital allocation. InvestingPro data reveals the company’s financial health score stands at 1.41, labeled as ’WEAK’, with negative EBITDA of -$3.81 million in the last twelve months.
Reliance Global Group, which operates in the insurance technology sector through platforms like RELI Exchange and 5MinuteInsure.com, stated that its entry into blockchain technology aligns with its focus on leveraging artificial intelligence and innovative distribution models.
The announcement represents the company’s first step into cryptocurrency markets, with plans to gradually increase its digital asset holdings over time.
In other recent news, Reliance Global Group has reported a challenging second quarter of 2025, with its net loss widening to $2.7 million from $1.5 million in the same period last year. The company continues to focus on strategic initiatives, including debt reduction and product innovation, amid increased expenses and competitive pressures. Additionally, Reliance Global Group has announced a strategic expansion into digital assets, planning to invest up to $120 million in cryptocurrencies such as Bitcoin, Ethereum, and Solana. This investment will be managed by the company’s newly formed Crypto Advisory Board.
Furthermore, Reliance Global Group has entered into an At The Market Offering Agreement with H.C. Wainwright & Co., LLC, allowing the company to offer and sell up to $2,026,453 of its common stock. In another development, the company launched a new Client Service Center for its RELI Exchange InsurTech platform, aiming to support independent insurance agents by handling client service requests. Meanwhile, JPMorgan has reiterated its Overweight rating on Reliance Industries, following the company’s announcement to list its telecom business, Reliance Jio, by June 2026. These recent developments highlight the company’s ongoing efforts to expand and innovate across various sectors.
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