HONG KONG - Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT), a company traditionally known for its interactive entertainment and educational technologies, has officially expanded into the gold supply chain business with the delivery of a 1,000-kilogram gold shipment. This move comes as a strategic initiative to establish a new revenue stream and strengthen the company's market position.
The delivery, which took place today, follows a framework agreement made in October 2023 with Macau Rongxin Precious Metals Technology Co., Ltd., a Macau-registered company. The gold, purchased at approximately $66.49 per gram, amounts to a total purchase price of around $66.49 million. This price reflects a significant increase from the spot price of gold at the time of the agreement, which was approximately $61.14 per gram, and even more so from the current spot price of $80.61 per gram as of August 28, 2024.
BHAT aims to utilize the acquired gold in its supply chain business, targeting refineries, wholesalers, and retailers. The company's CEO, Chen Xiaodong, expressed that this gold delivery is a key step forward for BHAT in the bulk commodity trading sector and is expected to contribute to the company's growth and open up further opportunities.
The company anticipates that the proceeds from this delivery will improve its financial flexibility, allowing for additional expansion within the precious metals market. BHAT continues to focus on innovation and operational efficiency as it seeks new market opportunities.
It should be noted that this press release contains forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance, and the company's actual results could differ materially from those discussed in the forward-looking statements. Investors are advised to consider these risks and uncertainties carefully.
This expansion into the gold supply chain business represents a diversification of BHAT's business model and an attempt to capitalize on the value of precious metals in the global market. The information in this article is based on a press release statement from Blue Hat Interactive Entertainment Technology.
In other recent news, Blue Hat Interactive Entertainment Technology has made a significant shift into the gold trading industry, utilizing artificial intelligence to enhance its supply chain and trading platform. The company has established business cooperation agreements with Sichuan Jinyinghe Industrial Co., Ltd. in Shenzhen and GTC Group LLC in Dubai. Additionally, its subsidiary, Golden Alpha Strategy Ltd., has secured Dealers in Precious Metals and Stones Category A Registration from the Hong Kong Customs and Excise Department.
Blue Hat's unique approach to gold trading involves generating revenue from various aspects of the gold supply chain, not just the buy-sell spread. Its sources will include both recycled and newly mined gold. The company's digital trading solutions, designed for flexibility, allow traders to capitalize on gold price movements without the need for physical storage and insurance.
In a noteworthy development, Blue Hat has announced its intention to acquire a 60% share of UAE-based financial technology firm GTC Multi Trading DMCC (GTCM) through the issuance of ordinary shares. This move underscores Blue Hat's strategic pivot towards the fintech sector, specifically in AI-assisted trading of gold, precious metals, and financial derivatives.
Additionally, Blue Hat has appointed an AI digital person, "Aileen," as Chief Information Officer (CIO). Aileen's role will include gathering industry information to support strategic decisions and engaging with investors and media online. These recent developments are part of Blue Hat's broader efforts to diversify its business portfolio and establish itself as a leading intelligent commodity trader on a global scale.
InvestingPro Insights
As Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) embarks on its new venture into the gold supply chain, the company's stock performance and financial health come under closer scrutiny. According to real-time data from InvestingPro, BHAT has a market capitalization of $35.62 million, showcasing the size of the company in the financial markets. With a significant return over the last week of 19.51%, investors may be reacting positively to the company's strategic move into the gold business.
Despite these gains, InvestingPro Tips highlight that BHAT stock generally trades with high price volatility, which could indicate a higher risk for investors. Additionally, the company is currently trading at a low revenue valuation multiple, which might suggest that the market undervalues BHAT's revenue potential, particularly in light of its new gold supply chain operations.
Another key financial metric, the gross profit margin for the last twelve months as of Q4 2023, stands at -15.53%, reflecting challenges in profitability that the company faces. This aligns with the InvestingPro Tip that BHAT suffers from weak gross profit margins, which potential investors should be aware of when considering the company's future prospects.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, providing further insight into BHAT's performance and financial position. To explore these tips and gain a comprehensive understanding of Blue Hat Interactive Entertainment Technology's potential, visit https://www.investing.com/pro/BHAT.
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