Simply put
- Allied Gaming & Entertainment has started to invest in Bitcoin and Ethereum for its Treasury Department.
- The company’s publicly traded share price briefly doubled on Friday after this announcement.
- There’s been a trend among companies to accumulate cryptocurrency, inspired by strategies from major players in the Bitcoin space.
Alliance Games and Entertainment, a NASDAQ-listed eSports and gaming company, announced its investment in Bitcoin and Ethereum as part of a new “Corporate Financial Management Strategy.”
Following this news, the stock, trading under the ticker Agae, surged 105% to $1.87 early Friday before settling at $1.65. TradingView showed a total daily increase of 71%.
The company noted that this is merely a “first step” towards incorporating cryptocurrency into its balance sheet and hinted at broader plans to engage with blockchain and its Real World Assets Initiative.
The specific amounts invested in Bitcoin and Ethereum are yet to be disclosed. I reached out for more details but haven’t heard back yet.
“We view cryptocurrencies not only as digital currencies but as strategic assets for our future,” said Agae CEO Yangyang James Li. “Incorporating blockchain and digital assets into our ecosystem aligns perfectly with our vision of connecting people through gaming, entertainment, and innovative financial technology.”
Allied Gaming & Entertainment, primarily focused on the eSports sector, operates venues like the Hyperx eSports Arena in Las Vegas, which hosts events such as the 2019 League of Legends All Stars matches.
Since its launch in 2017, the company’s stock debuted at $9.54, peaked at $12.11 in October 2018, and has since seen a gradual decline. However, this recent cryptocurrency announcement has revitalized interest, with the stock’s value now seeing a significant jump.
The company’s future plans could potentially include cryptocurrency payments, creating models for monetizing intellectual property, and integrating Stablecoins and utility tokens within their digital ecosystem.
This development is just one of many recent moves by publicly traded cryptocurrency companies in the U.S.
This shift began with Michael Saylor’s MicroStrategy, which transitioned from business intelligence software to a major Bitcoin holder, now owning over 638,460 BTC, valued at approximately $73.6 billion.
Many companies have since followed suit, seeking similar success in the crypto market.
Notably, Sharplink Games and Bitmine Immersion Technologies own substantial amounts of Ethereum and have reported significant earnings.
However, it’s not just larger firms that are getting involved; companies are also venturing into smaller or meme coins like Dogecoin and others.
This surge in activity has raised concerns among some industry analysts about a possible Black Swan event reminiscent of the FTX collapse.
Nonetheless, Joseph Chalom, co-CEO of Sharplink Gaming, expressed optimism recently, arguing that the Ethereum Treasury push will educate institutional investors about cryptocurrencies, framing it as a positive “swan” event instead.
