Mogu (MOGU) stock underwent a massive rally on Thursday after the Chinese fashion and lifestyle company announced a crypto investment. The company has dedicated up to $20 million to the purchase of cryptocurrencies, with a focus on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). The company noted that this will include related securities and investment products.
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According to the Mogu board of directors, this move will see it integrate crypto assets into its core assets. Doing so will diversify its holdings while also preparing it for next-generation artificial intelligence (AI) products and services. The board also gave Mogu Chairman Chen Qi the authority to determine the right time to purchase crypto and how much to spend when he does.
Mogu joined a growing number of companies that have decided to adopt crypto as a treasury asset. This has resulted in similar attention for those stocks. One prime example is Eightco (OCTO), which surged earlier this week on a similar move.
Mogu Stock Movement Today
News of Mogu’s dedication to acquire crypto caught the attention of retail traders today. This resulted in the company’s shares undergoing a huge 156% increase in pre-market trading on Thursday. This extends a 15.21% year-to-date rally and a 29.53% gain over the past 12 months.
With today’s news came heavy trading of MOGU stock. As of this writing, roughly 27 million shares have changed hands, compared to a three-month daily average of about 5,500 units.
Is Mogu Stock a Buy, Sell, or Hold?
Turning to Wall Street, analyst coverage of Mogu is thin. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates MOGU stock Underperform (40) with no price target. It cites “significant financial challenges, including declining revenue, consistent losses, and cash burn issues” as reasons for this stance.
