ATA Creativity Global stock soars after Bitcoin ecosystem deal

Published 01/08/2025, 21:12
© Reuters.

Investing.com -- ATA Creativity Global (NASDAQ:AACG) stock surged 43.5% following the announcement of a significant investment deal with Baby BTC Strategic Capital Limited.

The NASDAQ-listed company has signed a Memorandum of Understanding with Baby Capital, a special purpose fund lead-invested by the Babylon Foundation. According to the agreement, Baby Capital will subscribe for new shares of ATA worth up to $30 million and obtain warrants worth $70 million, bringing the potential total investment to $100 million.

Upon completion of the transaction, Baby Capital will gain control of ATA Creativity Global and appoint three directors to conduct a comprehensive board restructuring. The deal represents a strategic move to integrate traditional capital markets with the Bitcoin ecosystem.

ATA Creativity Global plans to collaborate with the Babylon Foundation to expand Bitcoin staking business, with ambitious goals to cover 100,000, 200,000 or potentially one million Bitcoins and introduce them into DeFi ecosystems. The company aims to leverage Babylon’s technology to activate Bitcoin’s application potential beyond simple value storage.

The Babylon Foundation operates an innovative Bitcoin Layer 2 network that enables trustless and non-custodial Bitcoin staking. Since launching its mainnet in August 2024, Babylon has attracted more than 57,000 Bitcoins for staking, with a total value exceeding $5 billion as of July 2025.

After gaining control, ATA Creativity Global will focus on "strategic reserve treasury," investing most proceeds from the transaction in Baby tokens and a smaller portion in Bitcoin. The company plans to build a sustained growth mechanism through continuous acquisition of these digital assets via batch issuance of stocks and convertible bonds.

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