Shares of MicroCloud Hologram Inc. (NASDAQ: HOLO ) surged 30% after the technology services provider announced it would invest up to $200 million in bitcoin and cryptocurrency-related securities derivatives.
The company reported that its cumulative investment income from these plans has reached $34.02 million as of July 11. MicroCloud currently holds a large cash reserve of approximately $394 million, which it plans to allocate to derivatives and technology development in emerging fields, including Bitcoin-related blockchain, quantum computing, quantum holography, and AI-driven augmented reality technology.
The cryptocurrency investment represents a strategic move by MicroCloud to incorporate Bitcoin and its derivatives into its capital reserve strategy. The company said the move is intended to enhance financial stability and long-term growth potential through diversified investments while gaining valuable insights into the mechanics of the cryptocurrency market.
The allocated funds will mainly target Bitcoin or other cryptocurrencies with significant market influence and growth potential, as well as related securities derivatives. These assets will become part of MicroCloud's financial reserves, aiming to improve the diversity and risk resistance of its overall asset portfolio.
MicroCloud’s approach is similar to strategies employed by other public companies seeking exposure to the cryptocurrency market, both as an investment vehicle and as a strategic business direction.