Fintech
Blue Hat to Acquire Major Stake in UAE Fintech Firm GTCM By Investing.com
XIAMEN, China – Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT), a company previously known for its interactive augmented reality (AR) games and toys, announced plans to acquire a 60% stake in GTC Multi DMCC Trading (GTCM), a financial technology company based in the United Arab Emirates.
The acquisition, which will be made through the issuance of common shares, marks Blue Hat’s strategic pivot to the fintech sector, particularly in artificial intelligence (AI)-assisted trading of gold, precious metals and financial derivatives.
The move follows a framework cooperation agreement with GTC Group LLC and signals Blue Hat’s commitment to integrating AI technology with financial services. BHAT CEO Chen Xiaodong said the acquisition is a crucial step in the company’s transition to AI-based financial solutions. “This partnership marks a fundamental shift in our company’s strategy towards the fintech sector,” Chen said.
Zheng, founder of GTCM, also shared his enthusiasm for the partnership, highlighting the potential of AI technology to revolutionize financial transactions, customer service and product innovation. Both parties expect that the collaboration will lead to significant advancements in AI-based financial services and foster growth in the fintech sector.
This strategic move is part of Blue Hat’s broader efforts to diversify its business portfolio. The company, which has a history in communications services and the IDC business, now aims to position itself as a leading intelligent commodity trader on a global scale.
Information regarding this acquisition is based on a press release from Blue Hat Interactive Entertainment Technology. The Company advised that the forward-looking statements contained in the press release are subject to various risks and uncertainties and that actual results could differ materially from those anticipated. For further details, investors are directed to Blue Hat’s investor relations website and SEC filings.
Insights on InvestingPro
As Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) undertakes its strategic pivot into the fintech sector with the acquisition of a majority stake in GTC Multi Trading DMCC, investors and market observers are closely monitoring the financial health and company stock performance.
Second InvestirePro According to the data, Blue Hat’s market capitalization currently stands at a modest $64.81 million. Despite the company’s significant revenue growth over the trailing twelve months as of Q4 2023, with an impressive increase of 3255.57%, it is important to note that this growth did not translate into profitability, as the company reported a margin gross profit of -15.53. % during the same period.
Investors considering Blue Hat as part of their portfolio should be aware of the challenges the company faces in sustaining profit margins. A Tip for InvestingPro points out that Blue Hat suffers from weak gross profit margins, which is a critical factor to consider when evaluating the company’s long-term financial stability.
Furthermore, although Blue Hat operates with a moderate level of debt – an important aspect of financial health – the company has not reported a profit in the last twelve months, which could be a cause for concern for potential investors. On a more positive note, another Tip for InvestingPro indicates that Blue Hat’s cash exceeds its near-term obligations, providing some reassurance about the company’s ability to meet its immediate financial liabilities.
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