Key Takeaways:
- QMMM shares rose 2,300% in a single day before closing 1,737% higher at $207 on Nasdaq, following the announcement of a $100 million digital asset treasury (DAT) anchored by Bitcoin, Ethereum, and Solana.
- The company, which was previously a media corporation, is now focusing on blockchain and AI.
- In after-hours trading, QMMM shares fell more than 50% to roughly $105, illustrating the rally’s speculative, narrative-driven nature.
QMMM Holdings (Nasdaq: QMMM), a Hong Kong-based media firm, saw its shares surge by 2,300% during Tuesday’s market session before closing 1,737% higher at $207 on Nasdaq. The sudden surge came in after the company announced a $100 million digital asset treasury (DAT) anchored by Bitcoin (BTC), Ethereum (ETH) and Solana (SOL).
According to the press release, QMMM plans to build a decentralized data marketplace using blockchain and AI, offering smart trading insights, DAO tools, metaverse upgrades, and security support.
QMMM’s $100M Crypto Treasury Pivot
QMMM’s main business operations include digital advertising, virtual avatar & virtual apparel technology. The company’s recent aspirations to expand into blockchain include establishing a $100 million cryptocurrency treasury consisting of BTC, SOL and ETH.
According to the recent SEC filings, the QMMM reported $497,993 in cash and a net loss of $1.58 million for fiscal 2024, raising financial concerns amongst investors, wondering how the company will fund the accumulation.
QMMM Falls Over 50% During After-Market Hours
The sudden surge in QMMM’s price was hugely driven by the news of expanding into segments such as blockchain and AI. The ambitions of a $100 million DAT fueled the narrative, leading a retail-driven momentum.
The speculative nature of QMMM’s shares is largely evident as the stock fell by more than 50% during the after-market hours, currently around the levels of $105. The big fluctuations demonstrate both investor interest in Web3 exposure and the risks of thinly funded enterprises pursuing drastic changes.
The reaction to the stock price during post-market hours highlights that the spike was primarily “narrative-driven upside” related to the company’s cryptocurrency transition rather than fundamentals.
From Media Firm to Web3 Aspirant
QMMM plans to establish a decentralized data marketplace, DAO treasury management tools, and AI-powered analytics to assist creators, investors, and developers.
CEO Bun Kwai underlined that these measures aim to “create long-term value for stakeholders while reinforcing our position as a forward-thinking technology company. Kwai, who took over as CEO in June 2023, has led the company’s shift from a digital media organization to a blockchain-native platform.
What’s the Future for QMMM?
The company’s new pivot towards blockchain and AI has attracted significant attention; however, the company’s ability to maintain momentum will be determined by transparency, funding strategies, and the successful implementation of its Web3 roadmap.
What is a DAT?
A Digital Asset Treasury is a reserve of cryptocurrencies managed by organizations, individuals, or even governments, designed to strategically allocate funds into assets such as Bitcoin or Ethereum. Its primary objective is to optimize returns through capital appreciations.
What is a DAO?
A DAO (Decentralized Autonomous Organization) is similar to an online community or organization that operates on blockchain, with regulations written into smart contracts rather than being administered by a supervisor or board.
