MicroCloud Hologram (HOLO) has raised $40 million from investors as it gets set to use quantum signatures to beef up blockchain security.
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New Quantum Blockchain Technology
HOLO’s shares were down just over 5% at the close yesterday and flat in pre-market trading as it entered into convertible note purchase agreements with investors to provide it with “working capital and to support general corporate purposes.” MicroCloud, which operates in the hologram technology sector, said that it was developing a new quantum blockchain technology utilizing quantum signature technology. It would focus, it said, on a quantum asymmetric consensus chain algorithm based on the Bitcoin blockchain, aiming to “enhance digital transaction security and reliability.”
It said that quantum signatures would enhance the security of traditional encryption algorithms, effectively defending against the potential threats that quantum computing poses to traditional blockchain technologies. “The development of this technology addresses current security issues in the digital economy while focusing on future growth,” it said. “Quantum blockchain technology is expected to transcend the digital currency sector and deeply integrate with practical industries such as finance, supply chain, and healthcare.” In addition, HOLO said it plans to invest up to $200 million in technology development and derivative products related to blockchain, quantum computing, and artificial intelligence.
HOLO’s Tough 12 Months
HOLO’s stock has short-circuited by around 100% in the past 12 months, raising Nasdaq delisting fears. In the year to date it is down by around 75%. However, despite these issues HOLO remains a highly innovative company boasting around 183 patents and 1,695 holographic copyrights. Its standout products include Holographic LiDAR Solutions for cars and digital twin technology that captures objects in 3D holographic form. It is also in the centre of a growing market. In 2023, the global holographic display sector was valued at $38.6 billion. It is projected to climb at a compound annual growth rate of 10.34% from 2024 to 2032.
Is HOLO a Good Stock to Buy?
No analyst price tags have been issued on the stock, but HOLOs’ technical indicators suggest a neutral position.
