Chinese fashion retailer Mogu said its board approved allocating $20 million to purchase digital assets including Bitcoin, Ethereum and Solana, a move that sent its Nasdaq-listed shares sharply higher.
Shares rose about 76% to $4.40 on Thursday, briefly topping $7 after the announcement. The stock has traded mostly under $5 since an early‑2021 peak above $37.
The company said the allocation aims to “integrate digital assets into its core assets” to diversify treasury holdings and bolster capabilities for next‑generation AI products and services.
Mogu joins a growing list of public companies adopting crypto treasuries—a trend popularized by MicroStrategy, which now holds 638,460 BTC (roughly $73 billion) and shifted its strategy from software to Bitcoin accumulation.
Analysts warn the approach can boost stock price momentum but also expose firms and investors to crypto volatility. Last week S&P declined to include MicroStrategy in the S&P 500, a reminder that index rules and investor fatigue can temper long‑term gains.
For investors, the key takeaway is that corporate crypto purchases can signal strategic diversification but come with market and regulatory risks; treat such moves as informative signals, not investment advice.
Mogu went public in 2018 and previously counted Tencent among its investors.
Source: Decrypt. Read the original coverage for full details.