SoFi CEO enters prepaid forward contract on 1.5 million shares
NEW YORK - SMX (Security Matters) (NASDAQ:SMX), a micro-cap company with a market value of under $1 million and whose shares have declined 98% year-to-date, announced Tuesday the formation of a new wholly owned subsidiary in Ireland called SMX (Treasury and Digital Asset Holding Company) Limited, according to a press release statement.
The new entity will enable the company to incorporate Bitcoin and other digital assets into its treasury operations. This development follows the recent signing of the GENIUS Act into U.S. law, which establishes a federal framework for cryptocurrency and stablecoins.
SMX, which specializes in supply chain traceability technology, indicated the new subsidiary represents a continuation of its existing blockchain and digital asset strategy rather than a shift in direction.
The company’s technology includes the Plastic Cycle Token (PCT), which is built on blockchain to provide tracking of materials from origin to end use. According to the company, the PCT will offer brands a way to monetize circularity and meet compliance standards through a decentralized ledger.
SMX stated that the GENIUS Act, along with an expected follow-on bill, provides a more favorable regulatory environment for scaling these systems.
The announcement was made in conjunction with a Form 6-K filing with securities regulators. The company did not disclose specific investment amounts or timelines for the treasury operations.
SMX’s core business focuses on marking, tracking and measuring technologies designed to help businesses transition to a low-carbon economy. While InvestingPro analysis suggests the stock is currently undervalued, the company’s overall financial health score remains weak at 0.71, with 13 additional ProTips available to subscribers regarding the company’s financial outlook.
In other recent news, SMX Public Limited Company announced a 4.1:1 reverse stock split that will commence trading on an adjusted basis on June 16, 2025. This move, approved by shareholders, will reduce the company’s outstanding ordinary shares from approximately 4 million to 1 million. The shares will also receive new identification codes. Additionally, SMX has secured $5.5 million through the sale of convertible promissory notes to institutional investors. This funding is intended to enhance the company’s working capital and address certain existing debts and liabilities. The private placement deal was facilitated by RBW Capital Partners LLC, with legal counsel provided by Ruskin Moscou Faltischek PC and Sichenzia Ross Ference Carmel LLP. These developments reflect SMX’s ongoing efforts to manage its financial structure and operational needs.
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