Agreement to Establish Digital Currency Investment Company Partnership
Rhea-AI Summary
MultiMetaVerse Holdings (MMV) announced a joint venture agreement to establish a digital currency investment company in Hong Kong. MMV will hold 80% ownership, while partners Zhao Mingwei ('Big Bear') and Li Yuanfeng will each hold 10%. The venture aims to invest in Bitcoin and Bitcoin mining machines, targeting investments of 500 Bitcoins by June 2025 and 1,000 Bitcoins by December 2025. MMV will issue 1 million shares to each partner, contingent on maintaining a stock price above $1.00 for specific periods or achieving minimum Bitcoin investment targets.
Positive
- Diversification into cryptocurrency market with 80% ownership in new joint venture
- Partnership with established blockchain experts and investors
- Clear investment targets of 500 Bitcoins by June 2025 and 1,000 Bitcoins by December 2025
- Stock issuance tied to performance metrics protecting shareholder value
Negative
- Risk of stock price falling below $1.00 threshold
- High volatility exposure through Bitcoin investments
- Significant shift from core animation business into speculative cryptocurrency market
- Potential shareholder dilution through new share issuance
News Market Reaction
On the day this news was published, MMV declined 14.40%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
SHANGHAI, Dec. 03, 2024 (GLOBE NEWSWIRE) -- MultiMetaVerse Holdings Limited (NASDAQ: MMV) (“MMV” or the “Company”), a leading animation and entertainment company for young consumers in China, announced that it has reached an agreement with Zhao Mingwei (“Big Bear”) and Li Yuanfeng to jointly establish a joint - venture in Hong Kong, leveraging their respective resources to Bitcoin and Bitcoin mining machines.
According to the agreement, MMV will hold
The joint venture company plans to achieve Party B and Party C to invest 500 Bitcoins legally owned by them by June 2025 and 1,000 bitcoins before December 2025 to make the joint venture company legally own the assets.
MMV will issue Party B and Party C 1 million shares each, subject to the condition that (i) the closing share price of MMV on Nasdaq exceeds US
Zhao Mingwei (“Big Bear”), is a well - known financial blogger in China and an expert in digital currency. He is the founder of Xiongke Group and the author of “IP Wealth Creation Field”. He has over 10 million financial fans across his whole network in China. He has invested in projects such as Haowen International, Caitang (acquired by Proya), Guanyi Cloud Computing (acquired by Kingdee).
Li Yuanfeng, is a well - known angel investor in China, an expert in the application of blockchain technology, the former founder of Zhiyue Media (China) Holdings Co., Ltd., a former partner in Falcon Venture Capital, and a serial entrepreneur. He was named as the “Most Discovering Investor in China's Sharing Economy” by 36Kr. He was an early investor in projects such as Mipao, Delicious Life, Yuanding, Huifenqi, and Werewolf Kill, and an investor in the pre - IPO round of Inke. He has rich experience in the venture capital field.
Xu Yiran, Chairman and Chief Executive Officer of MMV, said, “We are pleased to join hands with two well - known blockchain and digital currency experts in China to work with us to develop our company's new business. The new company will focus on investing in Bitcoin globally.”
Zhao Mingwei (“Big Bear”) said, “Digital currency is one of the important investment targets in the global future and is worthy of in - depth research. Digital assets are a product of the pursuit of international market integration after the deepening of economic globalization, which initiates changes and challenges to the real economy level and the financial system in the industry. Of course, huge opportunities also coexist.”
Li Yuanfeng said, “I believe that once Bitcoin reaches
About MultiMetaVerse Holdings Limited
MultiMetaVerse Holdings Limited (NASDAQ: MMV) is an animation and entertainment company dedicated to providing high - quality, immersive entertainment experiences through original, user - generated content and professional user - generated content. MMV started producing animations under its signature brand Aotu World in 2015. With its inspiring storylines and unique graphic styles, it is especially popular among young audiences in China. By leveraging its established user base, MMV has built a diversified product portfolio, including animated content, comics, short videos, collectibles, stationery, consumer products, and mobile games under the Aotu World brand. It has also developed and expanded new brands, stories, and characters, such as Neko Album.
Safe Harbor Statements
This press release contains forward-looking statements which generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Without limiting the generality of the foregoing, the forward-looking statements in this press release include descriptions of the Company’s future commercial operations. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, such as the Company’s inability to implement its business plans, identify and realize additional opportunities, or meet or exceed its financial projections and changes in the regulatory or competitive environment in which the Company operates. You should carefully consider the foregoing factors and the other risks and uncertainties described in the Company’s Annual Report on Form 20-F and other documents filed or to be filed by the Company with the SEC from time to time, which could cause actual events and results to differ materially from those contained in the forward-looking statements. All information provided herein is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.
For more information, please visit https://www.multi - metaverse.com/.
For investor and media inquiries, please contact:
MultiMetaVerse Holdings Limited
Investor Relations
Email: ir@multi - metaverse.com
FAQ
What is MMV's ownership percentage in the new Bitcoin joint venture?
What are the Bitcoin investment targets for MMV's new joint venture?
What conditions must be met for MMV to issue shares to the joint venture partners?
How many shares will MMV issue to each partner in the Bitcoin venture?
