Nasdaq-listed Allied Gaming has added Bitcoin and Ethereum to its corporate treasury. The development was communicated to the general public via a press release, with the firm announcing an initial allocation of its corporate treasury into BTC and ETH.
According to the company, which is known for its e-sports and virtual event productions, the move is in line with its broader strategy to integrate blockchain technology and real-world asset tokenization into its business.
While the experiential entertainment firm refused to disclose the size of its investment, the market reaction was quite noticeable, with its shares rising as high as 105% after the announcement.
Allied Gaming makes crypto move with BTC, ETH treasury
Allied Gaming & Entertainment is a company that primarily focuses on entertainment in the e-sports gaming scene. The company owns and operates the HyperX Esports Arena, a 650-person capacity venue in Las Vegas that has hosted several events, including the 2019 League of Legends All-Stars match, as well as an event for Ethereum-based card battler Parallel in 2024.
The firm went public in 2017, debuting at $9.54 and hitting an all-time high of $12.11 in October 2018, according to data from TradingView. Since then, the stock has been on a slow downward spiral, with the latest crypto announcement giving it a momentary boost, doubling its value for some hours.
According to reports, the Allied Gaming leadership sees Bitcoin and Ethereum as the perfect cornerstones for building an entertainment ecosystem that would be entirely based on Web3.
In its statement, the company noted that the allocation represents the first phase of its comprehensive digital roadmap. The company also sees the move as a means to diversify its treasury, considering the fact that most firms decide to only pursue a single treasury.
Tokenization of RWAs and other blockchain-focused initiatives
Allied Gaming also sees it as a means to lay the foundation for a bigger adoption of blockchain technology in the future. This is expected to include tokenization of real-world assets like live entertainment rights, film and animation IP, and property management revenue streams.
“We see cryptocurrency not only as a store of value, but also as a strategic building block for the future of our business,” Allied Gaming CEO Yangyang James Li said.
He also added that combining blockchain and digital assets into the company’s ecosystem is a natural move that will further its vision to connect people through gaming, entertainment, and innovative financial technologies.
In addition to diversifying its treasury, Allied Gaming is also considering plans to improve its blockchain-based payment systems across its global IP portfolio. The move will cover e-sports platforms, live events, and experiential venues.
The company also mentioned that it plans to add stablecoins and utility token frameworks to improve cross-border transactions, user engagement, and liquidity within the ecosystem.
After the announcement, the shares of Allied Gaming on the Nasdaq saw a big rise, climbing as high as 105% at the peak of the trading day. The stock hit a high of $2.18 before dropping to settle around $1.73, a price that still represents a sharp increase that has grown the company’s market capitalization to around $73 million.
Meanwhile, the announcement signals the latest addition to the pool of publicly traded crypto treasury companies emerging in the United States. The move, which first started with Michael Saylor’s Strategy, which moved from a business intelligence software firm to a company focusing on Bitcoin, has seen the firm hold about 638,460. Presently, the Strategy cache is worth $73.6 billion, and Saylor noted that the firm is looking to acquire as much as 75% of the entire Bitcoin total supply.
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Source: https://www.cryptopolitan.com/allied-gaming-adds-btc-eth-to-treasury/
