BLUE HAT Announces the Entry into Malaysian Gold Market and Continuous Expansion in Gold Trade Business

Rhea-AI Summary

Blue Hat (NASDAQ: BHAT) announced the establishment of Malaysian subsidiary Golden Alpha Strategy Sdn. Bhd. in Penang on Dec 10, 2025 to enter the Southeast Asian gold market.

Key metrics: Malaysian demand for gold bars and coins rose 38% from Q3 2024 to Q3 2025; World Gold Council reports Malaysia gold investment at 2.5 tonnes in Q1 2025 (+34% YoY). Penang supplies ~80% of Malaysia's gold jewelry production. Market projection: jewelry retail CAGR 6.3% from RM 18.3bn (2025) to RM 23.4bn (2029). Company noted cumulative gold transactions of 200,000 grams.

Positive

• Subsidiary established in Penang, Malaysia (market entry)
• Malaysia demand +38% Q3 2024–Q3 2025
• World Gold Council: 2.5 tonnes Malaysia gold investment in Q1 2025
• Penang supplies ~80% of national gold jewelry production
• Projected jewelry retail CAGR 6.3% (2025–2029)

Negative

• None.

Key Figures

Gold bar/coin demand growth 38% Increase in Malaysian demand from Q3 2024 to Q3 2025

Gold investment demand 2.5 tonnes Malaysia, Q1 2025 World Gold Council data

YoY investment demand growth 34% Malaysia gold investment demand Q1 2025 year-on-year

Penang jewelry share 80% Share of Malaysia’s gold jewelry production from Penang

Jewelry retail CAGR 6.3% Forecast CAGR for Malaysian gold jewelry retail market

Market size 2025 RM 18.3 billion Forecast Malaysian gold jewelry retail market 2025

Market size 2029 RM 23.4 billion Forecast Malaysian gold jewelry retail market 2029

Gold trade transactions 200,000 grams Cumulative gold transactions since commencement of gold trade business

Market Reality Check

$1.39 Last Close

Volume Volume 40,280 vs 20-day average 37,510 (relative volume 1.07x) shows only slightly elevated trading ahead of this news. normal

Technical Price 1.27 is below 200-day MA of 1.93 and 94.82% below the 52-week high of 24.5, near the 52-week low of 1.07.

Peers on Argus

BHAT was down 1.55% while sector peers were mixed: GXAI +6.84%, MSGM +2.29%, SNAL +3.21%, TBH -0.74%, GIGM -0.47%, suggesting this gold-focused expansion news was stock-specific rather than a sector-wide move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 07	Gold returns update	Positive	-3.8%	Detailed strong returns from gold holdings during historic gold price rally.
Sep 12	Gold ops expansion	Positive	+7.9%	Reported significant progress and projected higher gold trading volumes for FY2025.
Jul 25	Gold holdings performance	Positive	+2.2%	Outlined large gold position with sizable unrealized gains and broader trading network.

Pattern Detected

Gold-related updates have generally seen positive or mixed reactions, with one notable selloff despite strong return metrics.

Recent Company History

Over recent months, BHAT has repeatedly highlighted its strategic shift toward gold. On Jul 25, 2025, it reported a 1-ton gold position with substantial unrealized gains and expanding trading operations across Hong Kong and Southeast Asia. On Sep 12, 2025, the company emphasized continued gold business expansion and higher projected trading volumes. On Nov 7, 2025, BHAT detailed strong returns from its gold asset strategy amid a historic gold rally but saw a negative next-day price reaction. Today’s Malaysian market entry continues this gold-centric trajectory.

Market Pulse Summary

The stock moved +8.7% in the session following this news. A strong positive reaction aligns with BHAT’s ongoing repositioning around gold, now extended into Malaysia’s growing market. Prior gold-focused updates on Sep 12 and Jul 25, 2025 saw positive price alignment, suggesting investors have previously rewarded expansion in this segment. However, the -3.77% move after the Nov 7, 2025 gold returns update shows that favorable metrics did not always sustain upside, underscoring that sentiment around execution and risk can shift quickly.

Key Terms

gold ETFs financial

"such as bank gold savings accounts and gold ETFs, is attracting more"

Gold ETFs are investment funds traded like stocks that let investors gain exposure to the price of gold without buying physical bars or coins; each share typically represents ownership of gold held in a vault or a contract tied to gold’s price. They matter because they offer a simple, liquid way to hedge against inflation or market turbulence, diversify a portfolio, and adjust gold exposure quickly, much like adding or removing an ingredient from a recipe.

compound annual growth rate (CAGR) financial

"market is expected to continue expanding at a compound annual growth rate (CAGR) of 6.3%"

Compound annual growth rate (CAGR) shows how much an investment grows, on average, each year over a certain period. It’s like measuring how fast a plant grows each year, smoothing out the ups and downs to see the overall growth trend. Investors use CAGR to compare different investments and see which one has the best long-term performance.

Investment Precious Metals (IPM) regulatory

"Products meeting the "Investment Precious Metals (IPM)" standard are fully tax-exempt"

Investment precious metals (IPM) are tangible metals such as gold, silver, platinum and palladium bought specifically as financial assets rather than for industrial use or jewelry. Investors hold them as a store of value and a diversifier—similar to keeping a spare currency or backup battery—because they tend to hold purchasing power in uncertain markets and can reduce overall portfolio risk.

Sales and Service Tax (SST) regulatory

"gold jewellery is also exempt from the Sales and Service Tax (SST)"

Sales and service tax (SST) is a consumption tax charged on the sale of goods and certain services, collected by businesses at the point of sale and remitted to the government. Think of it as a checkout surcharge that can raise the final price consumers pay; for investors, SST affects company revenues, profit margins and consumer demand because it changes costs, pricing strategy and competitiveness in the market.

AI-generated analysis. Not financial advice.

XIAMEN, China, Dec. 10, 2025 (GLOBE NEWSWIRE) -- Blue Hat Interactive Entertainment Technology (“Blue Hat” or the “Company”) (NASDAQ: BHAT) announced the official establishment of its Malaysian subsidiary, GOLDEN ALPHA STRATEGY SDN. BHD., in Penang. This marks the company's full-scale entry into the Southeast Asian gold market with Malaysia at its core. Against the backdrop of sustained global gold market activity, Malaysia demonstrates strong growth potential. From Q3 2024 to Q3 2025, demand for gold bars and coins in Malaysia increased by over 38%, positioning its market size within the global top five. Data from the World Gold Council further corroborates this trend, showing that Malaysia's gold investment demand reached 2.5 tonnes in Q1 2025, a year-on-year increase of 34% [1]. This series of data indicate that Malaysian market exhibits significant resilience and growth potential even in a high-price gold environment.

The appeal of Malaysian market stems not only from robust demand but also from its solid industrial foundation and clear development prospects. As a global significant gold processing and manufacturing hub, Malaysia possesses a complete industry chain from production to retail. Penang stands as the core of the country's gold manufacturing sector, contributing approximately 80% of its gold jewelry production. Industry analysis forecasts that Malaysian gold jewelry retail market is expected to continue expanding at a compound annual growth rate (CAGR) of 6.3%, projected to grow from RM 18.3 billion in 2025 to RM 23.4 billion in 2029 [2]. Concurrently, the rise of digital investment channels, such as bank gold savings accounts and gold ETFs, is attracting more young investors, forming a "dual-engine" for market growth alongside traditional physical retail.

On the policy front, Malaysia offers a highly favorable business environment for the gold market. There is no import or export tariffs on gold bars and jewellery. Products meeting the "Investment Precious Metals (IPM)" standard are fully tax-exempt, and gold jewellery is also exempt from the Sales and Service Tax (SST) [3]. These policies significantly reduce transaction costs and industry friction, enhancing Malaysia's competitiveness to be a global gold trade and investment hub.

Guided by Blue Hat's strategy to "resolutely expand the scale of gold trade," the Southeast Asian market, centered in Malaysia, has become a crucial step in the Company's global expansion. Leveraging on Penang's mature industrial ecosystem and regional influence, the company will continue to deepen its gold trade business in Malaysia, integrate local high-quality channel and supply chain resources, and build a stable and efficient operational system.

Chen Xiaodong, CEO of Blue Hat, stated, "Since Blue Hat formally commences its gold trade business, the company has cumulatively completed transactions of 200,000 grams. We believe that effectively integrating channel resources for gold trading will further solidify the company's business moat. On this foundation, Blue Hat is committed to delivering long-term value to shareholders and investors through holding and trading gold."

Reference
[1] World Gold Council. Global Gold Demand Trends Report, First Quarter 2025.
[2] "Malaysia's Gold Industry Continues to Heat Up, Digital Investment and Physical Retail Advance Together," Financial Times, https://businesstimescn.com/articles/621961.html
[3] "Gold not subject to SST due to investment, cultural, economic reasons, says Treasury sec-gen."

About Blue Hat

Blue Hat, through its subsidiaries, operates a comprehensive gold trading business. Our core business model is built upon physical gold trading, gold derivatives trading, and the development of innovative, AI-enabled trading platforms. Our operations center on gold trading and related services, with strategic initiatives in gold supply chain services, intelligent trading platforms, gold derivatives, and the tokenization of gold as Real World Assets (RWA). For more information, please visit the Company’s investor relations website at http://ir.bluehatgroup.com. The Company routinely provides important information on its website.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company’s SEC filings. These risks and uncertainties could cause the Company’s actual results to differ materially from those indicated in its forward-looking statements.

Contacts:

Blue Hat Interactive Entertainment Technology
Phone: +86 (592) 228-0010
Email: ir@bluehatgroup.net

FAQ

What did Blue Hat (BHAT) announce on Dec 10, 2025 about Malaysia?

Blue Hat announced formation of Golden Alpha Strategy Sdn. Bhd. in Penang to enter Malaysia's gold market.

How large was Malaysia's gold investment in Q1 2025 reported for BHAT's expansion?

The World Gold Council reported 2.5 tonnes of Malaysia gold investment in Q1 2025, a 34% YoY increase.

What demand growth figures support BHAT's Malaysian expansion (Q3 2024–Q3 2025)?

Demand for gold bars and coins in Malaysia rose by 38% between Q3 2024 and Q3 2025.

How much gold trading volume has Blue Hat completed since starting its gold business?

The company reported cumulative transactions totaling 200,000 grams of gold.

What tax or policy advantages affect BHAT's Malaysian gold operations?

Malaysia applies no import/export tariffs on gold; IPM-standard products and jewelry enjoy tax exemptions and SST relief.

How does Penang factor into Blue Hat's gold trade strategy (BHAT)?

Penang is the company's operational hub; it accounts for about 80% of Malaysia's gold jewelry production.