China-based fashion company MOGU saw its stock reach above 80% after it announced to investors that it would allocate $20 million to add crypto assets to its balance sheet. Why did the company decide to invest in crypto?
Summary
- MOGU’s share price soared 84% following the announcement that the social media firm would start buying crypto assets worth $20 million.
- Chairman Chen Qi will be in charge of deciding when to deploy the funds to buy crypto for the company.
According to a recent press release, the online fashion and lifestyle platform’s board of directors have decided to allocate up to $20 million of corporate assets into crypto assets. These assets include Bitcoin, Ethereum, Solana and many more.
Founded in 2011, MOGU Inc is a social media e-commerce platform based in China. The platform specializes in content related to fashion, household products and services. MOGU’s site serves to bring merchants, KOLs and users together.
By adding cryptocurrency to its balance sheet, MOGU hopes that it can start diversifying not only its treasury holdings but also its operational capabilities as it gears up to dive into AI products alongside its ongoing fashion-related services.
The board of directors grants full authority to the firm’s Chairman Chen Qi to make the call for when the funds will be deployed into crypto asset purchases.
With this announcement, the company joins a handful of China-based firms that have invested their funds into cryptocurrencies, such as DayDayCook Enterprise, Aurora Mobile, Yunfeng Financial Group and others.
These companies have also seen a rise in stocks following the announcement stating that they would allocate a portion of their funds into buying crypto.
For instance, when Aurora Mobile announced in June 2025 that its board approved a plan to convert up to 20% of cash & equivalents into Bitcoin (BTC) as well as other digital assets, its shares jumped in pre-market trading, up nearly 10% after the announcement.
Mogu’s stock surges 84% as investors welcome crypto shift
A day after the announcement was shared, MOGU’s stock shot up in the market, rising by more than 80%. At press time, the share has risen by 84.4% following the recent announcement. It is currently trading hands at a price of $4.61 per share.
Before the announcement, MOGU’s share price was trading relatively low. It was even selling under $3 in recent days before the crypto allocation news. Future announcements that bring news of crypto purchases, as decided by the chairman, may help to boost the stock even higher.
Oftentimes, companies that take the route of “digital asset treasury” have used announcements of recent crypto purchases to further boost the stock price and improve financial outlook. However, recently these firms have experienced a “free-fall” period, with Strategy and Metaplanet experiencing a decline.
Price chart for the MOGU stock after the crypto purchase announcement | Source: Google FinanceSource: https://crypto.news/chinas-mogu-stock-explodes-84-after-20m-crypto-buy/
