Blue Hat Completes 1 Ton Gold Purchase, Surging Gold Prices Boost Book Profits to New Highs

Rhea-AI Summary

Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) has completed its final payment for a 1-ton gold purchase through its Hong Kong subsidiary, Golden Alpha Strategy , from Macau Rongxin Precious Metals Technology. The transaction, initiated on August 28, 2024, was valued at 473.78 yuan per gram (approximately $1,990 per ounce), totaling 474 million CNY.

The agreement includes a 3-year lock-up period for ordinary shares without voting rights, demonstrating Rongxin's confidence in Blue Hat's management. As of March 14, 2025, gold prices reached historic highs of $3,000 per ounce, driven by:

• Escalating geopolitical risks
• Expected Federal Reserve rate cuts
• Increased central bank gold reserves
• High U.S. core PCE inflation
• Declining U.S. Treasury yields

Due to the gold price surge, Blue Hat's book profit has exceeded $25 million, showcasing its market acumen in precious metals investment.

Positive

• Substantial book profit exceeding $25 million from gold investment
• Strategic acquisition of 1 ton of gold at $1,990/oz before price surge to $3,000/oz
• Long-term commitment from Macau Rongxin through 3-year share lock-up agreement

Negative

• Significant capital allocation locked in single commodity investment
• Exposure to gold price volatility risk

Insights

Financial Expert

Blue Hat's gold transaction represents a staggering financial development that dramatically transforms the company's financial position. With a market cap of just $10.9 million, BHAT has realized book profits exceeding $25 million from a single transaction—a gain that's more than double their entire market valuation.

The company's timing was remarkable, purchasing 1 ton of gold at approximately $1,990 per ounce before prices surged to $3,000. This 50% price appreciation created substantial value on paper in a very short timeframe.

The transaction structure with Rongxin Precious Metals Technology includes a 3-year lock-up period with no voting rights for the shares, allowing Blue Hat's management to maintain strategic control while securing this significant asset. This arrangement indicates a long-term strategic partnership rather than a short-term transaction.

For a company previously focused on interactive entertainment technology, this represents a dramatic pivot into precious metals investing. The CEO's statements clearly position this not as a one-off investment but as the beginning of a strategic expansion into the gold industry.

The financial impact cannot be overstated—these book profits will dramatically improve Blue Hat's financial statements, providing substantial capital for further expansion in the gold sector. This transaction effectively transforms the company's business model, balance sheet, and growth trajectory overnight.

Commodities Market Expert

This transaction demonstrates exceptional market timing amid gold's historic bull run. Blue Hat secured its position at $1,990 per ounce, capturing significant upside as prices reached the $3,000 threshold—a psychological and technical milestone in the gold market.

The macroeconomic drivers behind gold's rally align perfectly with Blue Hat's investment thesis: escalating geopolitical tensions boosting safe-haven demand, anticipated Federal Reserve rate cuts weakening the dollar, continued central bank purchasing (including China's reserve accumulation), persistent inflation concerns, and declining Treasury yields.

The 1-ton acquisition represents significant physical inventory—approximately 32,150 troy ounces—in a market where physical possession is increasingly valued. The purchase price of 474 million CNY (approximately $66.8 million) for this quantity demonstrates the substantial scale of this transaction relative to Blue Hat's size.

While the $25+ million in book profits is impressive, the continued structural support for gold prices suggests potential for further appreciation. The company's apparent shift toward becoming a player in the precious metals sector positions them to benefit from ongoing macroeconomic trends supporting gold prices.

For a company previously not associated with precious metals, establishing this position required remarkable market vision. The sheer size of this transaction relative to Blue Hat's market capitalization represents an aggressive but timely positioning in a high-performing asset class that continues to attract global investment flows.

HONG KONG, March 18, 2025 (GLOBE NEWSWIRE) -- Blue Hat Interactive Entertainment Technology (“Blue Hat” or the “Company”) (NASDAQ: BHAT) has successfully completed the final payment for the gold transaction between its Hong Kong wholly-owned subsidiary, Golden Alpha Strategy Limited, and Macau Rongxin Precious Metals Technology Co., Ltd.

According to the agreement, these ordinary shares are subject to a 3-year lock-up period and do not carry voting rights. This arrangement reflects the full trust and confidence of Macau Rongxin Precious Metals Technology Co., Ltd. in Blue Hat's management. By completely handing over the voting rights to Blue Hat's management by contract, Rongxin not only expressed its recognition of the company's strategic direction but also indicated its focus on long-term gains rather than short-term intervention in the company's operations. This foundation of trust paves the way for deeper cooperation between the two parties in the future.

In March 2025, international gold prices sustained their robust momentum as both the COMEX gold futures main contract and London spot gold successively reached the $3,000 per ounce threshold on March 14th, setting historic record. This gold price rally was driven by multiple factors: escalating geopolitical risks boosted safe-haven demand, growing expectations of a Federal Reserve rate cut weakened the U.S. dollar’s appeal, and central banks, including China, continued to increase their gold reserves. Additionally, persistently high U.S. core PCE inflation and declining U.S. Treasury yields reinforced gold’s dual role as an inflation hedge and a safe-haven asset, accelerating global capital inflows into the gold market.

This transaction originated from a cooperation agreement signed on August 28, 2024, where Golden Alpha Strategy Limited purchased 1 ton of gold at a price of 473.78 yuan per gram (approximately 1,990 per ounce), totaling 474 million CNY. With the continuous rise in international gold prices, Blue Hat′s book profit has exceeded 1,990 per ounce, totaling 474 million CNY. With the continuous rise in international gold prices, Blue Hat′s book profit has exceeded 25 million, fully demonstrating its layout capability and market acumen in the precious metals field.

Mr. Chen Xiaodong, CEO of Blue Hat, stated: "The successful completion of this transaction and the positive market performance once again prove our team's accurate investment judgment and strong market acumen. We expect that this 1-ton gold transaction not only significantly enhances the company's industry status in the precious metals field but also lays a solid foundation for our planned future business expansion." He further pointed out: "From a financial perspective, the substantial increase in book profits will significantly improve the company's financial statements, providing ample financial support for our expected further layout in the gold industry chain. At the same time, we expect the appreciation potential of gold assets will also benefit the company's long-term returns."

About Blue Hat

Blue Hat was formerly a provider of communication services, as well as a producer, developer, and operator of AR interactive entertainment games, toys, and educational materials in China. Leveraging years of technological accumulation and unique patented technology, Blue Hat is expanding its business to commodity trading, aiming to become a leading intelligent commodity trader worldwide. For more information, please visit the Company’s investor relations website at http://ir.bluehatgroup.com. The Company routinely provides important information on its website.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company’s SEC filings. These risks and uncertainties could cause the Company’s actual results to differ materially from those indicated in the forward-looking statements.

Contacts:

Blue Hat Interactive Entertainment Technology
Phone: +86 (592) 228-0010
Email: ir@bluehatgroup.net

FAQ

What is the total value of Blue Hat's (BHAT) recent gold purchase?

Blue Hat purchased 1 ton of gold at 473.78 yuan per gram (approximately $1,990 per ounce), totaling 474 million CNY.

How much profit has BHAT made from its gold investment as of March 2025?

Blue Hat's book profit has exceeded $25 million due to gold prices reaching $3,000 per ounce.

What are the terms of the share agreement between BHAT and Macau Rongxin?

The ordinary shares are subject to a 3-year lock-up period and do not carry voting rights, with voting control retained by Blue Hat's management.

When did BHAT initially sign the gold purchase agreement?

Blue Hat signed the cooperation agreement for the gold purchase on August 28, 2024.

What factors drove gold prices to reach $3,000 per ounce in March 2025?

Gold prices rose due to geopolitical risks, expected Fed rate cuts, increased central bank reserves, high U.S. core PCE inflation, and declining Treasury yields.