Mega Matrix Inc. Announces Completion of Private Placement and Official Strategic Expansion to Stablecoin Sector
Rhea-AI Summary
Mega Matrix (NYSE American: MPU) has successfully completed a $16 million private placement to fund its strategic expansion into the stablecoin sector. The company issued 16 million Class A ordinary shares at $1.00 per share to qualified institutional and accredited investors, primarily crypto funds and industry professionals, with a 6-month lock-up period.
The proceeds will be used to develop a stablecoin asset allocation system and on-chain yield mechanisms, focusing on corporate treasury strategies based on stablecoins and governance tokens. The company is currently in discussions with leading stablecoin issuers to initiate allocations of mainstream stablecoins and governance tokens.
Positive
- Secured $16 million in private placement funding from crypto funds and industry professionals
- Strategic expansion into the growing stablecoin sector amid clear regulatory frameworks
- Strong market confidence demonstrated by institutional investor participation
- 6-month lock-up period indicates long-term investor commitment
Negative
- Significant share dilution with 16 million new shares issued
- High execution risk in entering new stablecoin business
- Multiple disclosed risk factors including cryptocurrency volatility
- No immediate revenue generation plan detailed
News Market Reaction 18 Alerts
On the day this news was published, MPU gained 7.63%, reflecting a notable positive market reaction. Argus tracked a peak move of +4.0% during that session. Argus tracked a trough of -2.8% from its starting point during tracking. Our momentum scanner triggered 18 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $8M to the company's valuation, bringing the market cap to $113M at that time.
Data tracked by StockTitan Argus on the day of publication.
Amid increasingly clear regulatory frameworks for stablecoins, we believe that this sector is entering into a phase of accelerated development. As multiple countries introduce regulations and integrate stablecoins into their financial systems, the issuance volume of stablecoins is poised for exponential growth. This completed financing marks Mega Matrix's official entry into the stablecoin sector and a critical step in its strategic transformation.
MPU plans to allocate the financing proceeds primarily to build a stablecoin asset allocation system and on-chain yield mechanisms, with a focus on developing corporate treasury strategies based on stablecoins and governance tokens. The Company is in ongoing discussions with several globally leading stablecoin issuers and will initiate the allocations of mainstream stablecoins and governance tokens.
Terms of the Private Placement
Pursuant to the private placement, MPU issued 16,000,000 shares of Class A ordinary shares,
About Mega Matrix Inc.: Mega Matrix Inc. (NYSE American: MPU), a holding company headquartered in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements that are purely historical are forward looking statements. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose," and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees for future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, are the: ability to manage growth; ability to identify and integrate future acquisitions; ability to grow and expand our FlexTV business; ability to purchase Bitcoin or Ethereum at the price that we want; ability to reinitiate the ETH staking business, ability to implement the strategic expansion into the stablecoin sector, ability to obtain additional financing in the future to fund capital expenditures and our Bitcoin/Ethereum treasury reserve strategy and ability to create value; fluctuations in general economic and business conditions; costs or other factors adversely affecting the Company's profitability; litigation involving patents, intellectual property, and other matters; potential changes in the legislative and regulatory environment; a pandemic or epidemic; the possibility that the Company may not succeed in developing its new lines of businesses due to, among other things, changes in the business environment, competition, changes in regulation, or other economic and policy factors; and the possibility that the Company's new lines of business may be adversely affected by other economic, business, and/or competitive factors. The forward-looking statements in this press release and the Company's future results of operations are subject to additional risks and uncertainties set forth under the heading "Risk Factors" in documents filed by the Company with the Securities and Exchange Commission ("SEC"), including the Company's latest annual report on Form 20-F, filed with the SEC on March 28, 2025, and are based on information available to the Company on the date hereof. In addition, such risks and uncertainties include the inherent risks with investing in Bitcoin and/or Ethereum, including Bitcoin's and Ethereum's volatility; and risk of implementing a new treasury strategy. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release.
Disclosure Channels
We announce material information about the Company and its services and for complying with our disclosure obligation under Regulation FD via the following social media channels:
X (f/k/a Twitter): | twitter.com/MegaMatrixMPU |
Facebook: | facebook.com/megamatrixmpu |
LinkedIn: | linkedin.com/company/megamatrixmpu |
The Company will also use its landing page on its corporate website (www.megamatrix.io) to host social media disclosures and/or links to/from such disclosures. The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these social media channels in addition to following our website, press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described above may be updated from time to time as listed on our website.
For inquiries, please contact: Info@megamatrix.io
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SOURCE Mega Matrix Inc.
FAQ
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