WiMi Announces Total Cash, Cash Equivalents, and Bitcoin-Related Securities Derivatives Investments Reached Approximately RMB 3.266 Billion (USD 455 Million)

Rhea-AI Summary

WiMi Hologram Cloud (NASDAQ: WIMI), a leading AR technology provider, has reported significant financial strength with total cash, cash equivalents, and investments reaching RMB 3.266 billion (USD 455 million) as of August 7, 2025. This includes RMB 1.741 billion (USD 242 million) in bank cash and RMB 1.525 billion (USD 212 million) in Bitcoin-related securities derivatives and short-term investments.

The company plans to invest USD 450 million in quantum technology, holographic applications, blockchain, and Bitcoin-related cryptocurrency applications. This substantial cash position demonstrates WiMi's successful operational strategies and positions the company to pursue growth opportunities in innovative technologies.

Positive

• Strong cash position of USD 455 million demonstrates financial stability
• Planned USD 450 million investment in emerging technologies shows growth commitment
• Diversified investment portfolio across cash and Bitcoin-related securities

Negative

• Significant exposure to volatile cryptocurrency-related investments (USD 212 million)
• Large capital allocation to emerging, unproven technologies carries execution risk

Insights

Financial Analyst

WiMi's substantial $455M cash reserve and planned $450M tech investments signal strong financial positioning despite cryptocurrency exposure risks.

WiMi has reported a remarkable financial position with $455 million in combined cash, cash equivalents, and Bitcoin-related securities derivatives investments. The breakdown reveals $242 million in bank cash and $212 million in Bitcoin-related securities derivatives and short-term investments, representing a significant 46.6% of their total reserves in crypto-adjacent investments.

The company's announcement that they plan to allocate $450 million toward quantum technology, holographic technology, blockchain, and Bitcoin-related cryptocurrency applications signals an aggressive investment strategy. This allocation essentially commits nearly their entire current cash position to these emerging technologies.

While the company frames this as a demonstration of "successful execution" and "strength of management capabilities," investors should note the significant exposure to cryptocurrency volatility through both their current holdings and future investment plans. The Bitcoin-related securities derivatives represent a substantial risk concentration that could impact financial stability if crypto markets experience downturns.

The press release lacks specific details on revenue growth, profit margins, or operational metrics that would typically accompany truly improved operating performance. Instead, it focuses primarily on cash position and future investment plans. Without comparative historical data or performance metrics, it's difficult to assess the actual operational improvements mentioned.

The statement that their "financial model in emerging technology sectors has shown solid performance" lacks supporting evidence in this announcement. Additionally, the planned investments in quantum computing and expanded blockchain initiatives represent entry into highly speculative fields with uncertain returns, potentially creating significant execution risks for shareholders.

Technology Industry Analyst

WiMi's major investment in quantum and holographic tech signals strategic pivot while maintaining significant cryptocurrency exposure.

WiMi's announced $450 million investment in quantum technology and holographic applications represents a substantial strategic commitment for a company primarily known for AR technology. This investment allocation, representing nearly their entire reported cash reserve, suggests a significant expansion beyond their core holographic AR competencies into more experimental quantum computing applications.

The company's continued emphasis on blockchain and Bitcoin-related cryptocurrency applications indicates they're pursuing a dual-track technology strategy. While their core business involves holographic AR technology for automotive HUD systems, semiconductors, and cloud software, the substantial Bitcoin-related securities holdings ($212 million) signal that cryptocurrency exposure remains a major component of their business model.

Technically, WiMi appears to be positioning themselves at the intersection of three emerging technologies: AR/holographic systems, quantum computing, and blockchain. While this creates potential for innovative convergence, it also presents significant technical execution challenges. Each of these domains requires specialized expertise, and the company will need to demonstrate capabilities across these diverse fields.

The press release lacks specific technical details about their quantum technology roadmap or how it integrates with their existing holographic AR solutions. This broad investment announcement without technical specifics raises questions about whether they have a clearly defined development strategy or are simply following technology trends.

Their current technology portfolio spans automotive HUD software, 3D holographic pulse LiDAR, holographic semiconductors, and cloud software. Adding quantum computing to this already diverse technical portfolio will require focused R&D to deliver actual market-ready products rather than speculative research initiatives.

BEIJING, Aug. 7, 2025 /PRNewswire/ -- WiMi Hologram Cloud Inc. (Nasdaq: WIMI) ("WiMi" or the "Company"), a leading global Hologram Augmented Reality ("AR") Technology provider, today announced a significant improvement in its operating performance, with a notable increase in cash reserves.

As of August 7, 2025, the Company's total cash, cash equivalents, and short-term investments — including total cash and Bitcoin-related securities derivatives and short-term investments — reached approximately RMB 3.266 billion (equivalent to approximately USD 455 million). Among these, bank cash alone amounted to approximately RMB 1.741 billion (USD 242 million), while Bitcoin-related securities derivatives and short-term investments totaled approximately RMB 1.525 billion (USD 212 million).

The Company plans to allocate USD 450 million in investments toward quantum technology and holographic technology applications, while increasing capital deployment in blockchain and Bitcoin-related cryptocurrency applications. WiMi's financial model in emerging technology sectors has shown solid performance, with cash reserves continuing to grow. This milestone financial achievement clearly demonstrates the successful execution of the Company's efficient operational strategies and the strength of its management capabilities.

The sharp increase in cash reserves signifies a meaningful strengthening and optimization of the Company's financial position. With ample financial resources, WiMi is well-positioned to seize new development opportunities, enhance investment in innovative research and development, and drive future business growth.

About WiMi Hologram Cloud

WiMi Hologram Cloud, Inc. (NASDAQ:WiMi) is a holographic cloud comprehensive technical solution provider that focuses on professional areas including holographic AR automotive HUD software, 3D holographic pulse LiDAR, head-mounted light field holographic equipment, holographic semiconductor, holographic cloud software, holographic car navigation and others. Its services and holographic AR technologies include holographic AR automotive application, 3D holographic pulse LiDAR technology, holographic vision semiconductor technology, holographic software development, holographic AR advertising technology, holographic AR entertainment technology, holographic ARSDK payment, interactive holographic communication and other holographic AR technologies.

Safe Harbor Statements

This press release contains "forward-looking statements" within the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar statements. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Among other things, the business outlook and quotations from management in this press release and the Company's strategic and operational plans contain forward−looking statements. The Company may also make written or oral forward−looking statements in its periodic reports to the US Securities and Exchange Commission ("SEC") on Forms 20−F and 6−K, in its annual report to shareholders, in press releases, and other written materials, and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. Several factors could cause actual results to differ materially from those contained in any forward−looking statement, including but not limited to the following: the Company's goals and strategies; the Company's future business development, financial condition, and results of operations; the expected growth of the AR holographic industry; and the Company's expectations regarding demand for and market acceptance of its products and services.

Further information regarding these and other risks is included in the Company's annual report on Form 20-F and the current report on Form 6-K and other documents filed with the SEC. All information provided in this press release is as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement except as required under applicable laws.

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SOURCE WiMi Hologram Cloud Inc.

FAQ

What is WiMi Hologram Cloud's (WIMI) current cash position as of August 2025?

WiMi's total cash position is RMB 3.266 billion (USD 455 million), including RMB 1.741 billion (USD 242 million) in bank cash and RMB 1.525 billion (USD 212 million) in Bitcoin-related securities derivatives.

How much is WIMI planning to invest in new technologies?

WiMi plans to invest USD 450 million in quantum technology, holographic technology applications, blockchain, and Bitcoin-related cryptocurrency applications.

What percentage of WIMI's cash reserves are in Bitcoin-related investments?

Approximately 47% of WiMi's total cash and investments (USD 212 million out of USD 455 million) are in Bitcoin-related securities derivatives and short-term investments.

What is WiMi Hologram Cloud's main business focus?

WiMi is a holographic cloud technology provider specializing in holographic AR automotive applications, 3D holographic pulse LiDAR, holographic semiconductor technology, and other AR-related solutions.