WiMi Hologram Cloud boosts stake in MicroAlgo to 67.65%

BEIJING - WiMi Hologram Cloud Inc. (NASDAQ:WIMI), a key player in the global holographic augmented reality (AR) market, has recently upped its ownership in MicroAlgo Inc. (NASDAQ:MLGO) to 67.65%. The company also announced a ten-year lock-up period for its shares in MicroAlgo, signaling a long-term investment strategy and commitment to its stake in the firm. MicroAlgo, currently valued at approximately $118 million in market capitalization, has shown remarkable market performance with a 280% return over the past week and 155% over the last six months, according to InvestingPro data.

The increased shareholding includes 40,000 Class A ordinary shares, 1,810,658 Class A ordinary shares (restricted), and 44,878,261 Class B ordinary shares (restricted), making WiMi the majority shareholder. WiMi has expressed no intention to sell or otherwise relinquish its shares in MicroAlgo. InvestingPro analysis reveals that MicroAlgo maintains strong liquidity with a current ratio of 3.55, indicating robust short-term financial health.

This move by WiMi Hologram Cloud is seen as a strategic effort to stabilize market expectations and solidify its position in the industry. By locking up shares for a decade, WiMi aims to convey confidence in MicroAlgo’s future prospects and its own long-term investment outlook.

WiMi Hologram Cloud specializes in a wide array of holographic AR technologies, including automotive HUD software, 3D holographic pulse LiDAR, head-mounted light field holographic equipment, and holographic semiconductor, among others. The company’s services cater to various professional fields and incorporate advanced AR applications for automotive, advertising, entertainment, and interactive communication technologies.

The announcement is based on a press release statement and comes amid WiMi’s ongoing strategic and operational planning. The company has highlighted its belief in the growth potential of the AR holographic industry and anticipates strong market demand for its products and services.

Investors are advised to note that forward-looking statements involve inherent risks and uncertainties. WiMi’s future business development, financial condition, and operational results, as well as the expected industry growth, are subject to a range of factors that could affect the actual outcomes compared to the company’s current expectations. InvestingPro data shows MicroAlgo’s stock exhibits high price volatility with a beta of 2.24, while maintaining revenue growth of 20.4% in the last twelve months. For deeper insights into MicroAlgo’s financial health and additional ProTips, subscribers can access the full analysis on InvestingPro.

For more detailed information on the risks associated with these forward-looking statements, interested parties can refer to WiMi’s filings with the US Securities and Exchange Commission, including its annual report on Form 20-F and other documents. WiMi has stated that it does not plan to update any forward-looking statement unless required by applicable laws.

In other recent news, MicroAlgo Inc. has announced its plan to issue new shares at $0.8 each to address a $20 million debt, following a convertible bond purchase agreement. This strategic move is part of the company’s financial management efforts and was disclosed in a filing with the U.S. Securities and Exchange Commission. Additionally, MicroAlgo has made significant advancements in the Grover quantum search algorithm, enhancing its performance by optimizing the quantum circuit design. These improvements are aimed at reducing qubit error rates and increasing the algorithm’s practicality for real-world applications, potentially benefiting sectors with large database management needs.

Moreover, MicroAlgo has developed a quantum neural network-based intelligent search system that integrates with Grover’s algorithm to improve data search efficiency in large databases. This system uses quantum machine learning to streamline feature extraction and pattern recognition processes, promising faster and more accurate data retrieval. In another development, the company unveiled a new quantum algorithm technology designed to enhance quantum gate computers’ capabilities, focusing on improving complex computational tasks.

These recent developments reflect MicroAlgo’s ongoing commitment to innovation in quantum computing and algorithm technology. The company emphasizes that while these advancements offer potential benefits, they are subject to various conditions and risks.

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