Blue Hat Interactive Entertainment Technologies Announces Plan to Acquire GTC Multi Trading DMCC

Rhea-AI Summary

Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) announced a Letter of Intent (LOI) to acquire 60% of GTC Multi Trading DMCC (GTCM), a fintech company in the UAE. The acquisition will be carried out through the issuance of ordinary shares and signifies a strategic movement towards AI-driven financial services. CEO Chen Xiaodong emphasized the shift towards fintech and AI innovation. GTCM's founder, Mr. Zheng, expressed enthusiasm for leveraging AI technology to advance financial transactions and customer service. This partnership aims to enhance BHAT's position in the global fintech sector.

Positive

• Acquisition of 60% of GTCM signifies strategic entry into the fintech sector.
• Transaction executed through issuance of ordinary shares minimizes cash outflow.
• Focus on AI-assisted trading of gold and financial derivatives can drive innovation.
• Potential for enhanced customer service and product innovation through AI technology.
• Framework cooperation agreement with GTC Group suggests further strategic collaborations.

Negative

• Issuing new shares could lead to shareholder dilution.
• Execution risks associated with integrating AI technology into financial services.
• Dependence on the successful implementation of AI-driven solutions.

Insights

Financial Analyst

The acquisition of GTC Multi Trading DMCC (GTCM) marks a significant strategic shift for Blue Hat Interactive Entertainment Technology (BHAT) into the fintech sector. The move to acquire a 60% stake via the issuance of ordinary shares suggests BHAT aims to leverage GTCM’s AI-assisted trading technology. This deal could potentially diversify BHAT’s revenue streams, reducing its reliance on its traditional business segments.

For retail investors, this transition into fintech can be seen as a double-edged sword. On one hand, the fintech sector and particularly AI-driven trading technologies, have shown enormous growth potential. On the other hand, the transition into a new business domain also carries risks, including integration challenges and the need for substantial capital to support the new technology. Investors should closely monitor the financial health and stock dilution effect due to the issuance of new shares.

Rating: 1

Tech Expert

The focus on AI-assisted trading of gold, precious metals and financial derivatives indicates a forward-thinking approach by BHAT. AI in trading can provide significant advantages such as better predictive analytics, faster transaction times and enhanced decision-making capabilities. However, the success of this venture will depend heavily on the robustness and accuracy of their AI algorithms.

From a technological perspective, the integration of AI in trading is still a rapidly evolving field. Although it holds promise, it also faces hurdles such as regulatory compliance and data privacy concerns. Therefore, while the partnership could place BHAT as a frontrunner in AI-driven fintech, it will be important for the company to navigate these challenges effectively.

Rating: 1

XIAMEN, China, May 22, 2024 (GLOBE NEWSWIRE) -- Blue Hat Interactive Entertainment Technology (“Blue Hat” or the “Company”) (NASDAQ: BHAT) today announced that it has entered into a Letter of Intent (the “LOI”) to acquire GTC Multi Trading DMCC ("GTCM"), a financial technology company registered in the United Arab Emirates. According to the LOI, BHAT plans to acquire, through multiple rounds, an aggregate of 60% of the shares of GTCM through the issuance of ordinary shares. The transaction represents a significant milestone for BHAT in the global fintech sector, especially in the innovative realm of artificial intelligence (AI)-assisted trading of gold and other precious metals and financial derivatives.

Mr. Chen Xiaodong, Chief Executive Officer of BHAT, commented, "This partnership signifies a pivotal shift in our company's strategy towards the fintech sector and represents a significant milestone in our integration of AI technology innovation with financial services. The acquisition of GTCM marks the initial phase of our collaboration following the framework cooperation agreement with GTC Group LLC. We remain committed to further exploring AI applications in the financial industry, propelling our services and products towards an AI-driven future."

Mr. Zheng, the founder of GTCM, shared his positive outlook on the partnership, stating, "We are thrilled to embark on this significant partnership with BHAT. This collaboration will empower us to leverage the full potential of AI technology, achieving breakthroughs not only in financial transactions but also in customer service and product innovation. We look forward to working together with BHAT to develop a new era of AI-driven fintech solutions through this partnership."

The partnership is anticipated to yield a significant breakthrough for BHAT in AI-driven financial services, paving the way for innovative service models and fostering growth potential within the fintech industry.

About Blue Hat

Blue Hat was formerly a provider of communication services and IDC business, 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 its forward-looking statements.

Contacts:

Blue Hat Interactive Entertainment Technology

Phone: +86 (592) 228-0010

Email: ir@bluehatgroup.net

FAQ

What is the significance of BHAT acquiring GTC Multi Trading DMCC?

The acquisition represents a strategic move towards AI-driven fintech solutions, enhancing BHAT's position in the global financial technology sector.

How will BHAT finance the acquisition of GTCM?

BHAT plans to acquire GTCM by issuing ordinary shares in multiple rounds, thereby minimizing cash outflow.

What percentage of GTCM will BHAT acquire?

BHAT plans to acquire an aggregate of 60% of GTCM.

What is the anticipated impact of this acquisition on BHAT's business?

The acquisition is expected to drive innovation in AI-assisted trading and enhance customer service, positioning BHAT as a key player in the fintech industry.

What potential risks are associated with BHAT's acquisition of GTCM?

The main risks include shareholder dilution from issuing new shares and execution risks in integrating AI technology into financial services.