(Patrika English News): Shares of Allied Gaming & Entertainment (AGAE) surged on Friday after the Nasdaq-listed esports company revealed it had invested in Bitcoin and Ethereum as part of a new treasury management strategy.
The stock jumped 105% to $1.87 in early trading before settling at $1.65, still up more than 70% on the day, according to TradingView.
Crypto as a “strategic building block”
Allied Gaming’s CEO, Yangyang James Li, said the move marked only the “first step” in incorporating cryptocurrency into the company’s balance sheet.
“We see cryptocurrency not only as a store of value, but also as a strategic building block for the future of our BUSINESS,” Li said in a statement.
The company did not disclose the size of its Bitcoin and Ethereum purchases but said future initiatives could include accepting crypto payments, launching tokenization models for IP monetization, and integrating stablecoins and utility tokens within its digital ecosystem.
A boost for a struggling stock
Founded in 2017, Allied Gaming operates the HyperX Esports Arena in Las Vegas, which has hosted major tournaments including the 2019 League of Legends All-Stars event. Its shares debuted at $9.54 and peaked at $12.11 in 2018, but have been in long-term decline until this latest announcement offered a sharp rebound.
Part of a wider trend
Allied Gaming joins a growing number of U.S. firms adding crypto to their treasuries, following the example of MicroStrategy (now Strategy), which has become the world’s largest Bitcoin holder with 638,460 BTC worth over $73 billion.
Other companies, including SharpLink Gaming and BitMine Immersion Technologies, have amassed billions in Ethereum reserves, holding more than 2.4% of the total ETH supply between them.
While some analysts worry that the trend could spark systemic risks if markets turn, others argue it could accelerate institutional adoption of digital assets.
