A stock of an e-commerce inventory management platform surged over 3000% in a single day after the company announced plans to acquire and hold Worldcoin, the cryptocurrency behind Sam Altman's eye-scanning digital identity project.
Eightco Holdings announced plans to raise approximately $250 million in total revenue through a stock sale to "implement an innovative Worldcoin asset reserve strategy." The sale includes a private placement of 171.23 million common shares at a price of $1.46 per share.
The company added that the publicly listed BitMine Immersion Technologies (the largest holder of Ethereum) has purchased 13.7 million common shares for $20 million.
Eightco has become the latest member of a recent wave of non-crypto companies holding significant amounts of cryptocurrency. As more market participants join, this trend has raised concerns among some about the health of these businesses.
Eightco Holdings (OCTO) closed up nearly 3009% on Monday at $45.08, although it retreated from an intraday high of over $80, it is still significantly higher than Friday's closing price of $1.45.
After hours, the stock slightly retreated, falling nearly 6% to close at $42.40.
Eightco stated that the expected $250 million fundraising will take place on Thursday, with institutions such as World Foundation, Kraken, and FalconX participating.
The company will use the raised funds to purchase Worldcoin (WLD) as a "primary asset reserve while continuing to focus on core business operations." The company may also consider acquiring Ethereum (ETH) as a secondary asset.
The company also mentioned plans to change its Nasdaq stock ticker to "ORBS" on the same day, in reference to the eye-scanning devices used by Worldcoin's issuer, World Network.
Altman is the co-founder and CEO of OpenAI, and he established the project aimed at achieving online human identity verification. By scanning users' irises, Worldcoin is distributed to users, providing access to a partner ecosystem.
The project has drawn regulatory scrutiny for allegedly violating privacy laws, with its operations restricted, suspended, or even outright banned in some countries.
Altman stated in a statement, "If we achieve our mission, World could become the largest real human network globally, fundamentally changing how we interact and transact online."
Eightco announced that Dan Ives, the head of technology research at Wedbush Securities, will join the board and serve as chairman.
Ives is well-known for his outspoken views on the tech industry and stated last December that the tech sector would be in a bull market for the next three years. Earlier this year, he also launched an exchange-traded fund (ETF) tracking artificial intelligence companies.
Ives remarked that his appointment marks "the next step in the AI revolution surrounding authentication and human proof."
He added, "The future of AI needs World to lead the way in this AI-driven Fourth Industrial Revolution."
Meanwhile, Worldcoin has risen 49.2% in the past 24 hours due to Eightco's asset reserve strategy.
The token is currently priced at $1.54, with a cumulative increase of 80.5% over the past seven days.
On April 7 of this year, Worldcoin briefly fell to an all-time low of about $0.58 but subsequently rebounded with the cryptocurrency market. However, the token is currently down about 87% from its peak of $11.74 set in early March 2024.
Related: The U.S. Congress requests the Treasury Department to report on strategic Bitcoin (BTC) reserve details.
Original article: “Fintech Company Eightco Surges 3000% Due to Plans to Acquire Worldcoin”
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