MultiMetaVerse Holdings Limited Announces Establishment of Joint Venture

Rhea-AI Summary

MultiMetaVerse Holdings (NASDAQ: MMV) has announced the establishment of a new joint venture, GOLD ABC DIGITAL TECHNOLOGY CO., , in partnership with ZHENGHE HOLDING CO., MMV owns 20% of GOLD ABC, which focuses on algorithms for self-holding asset appreciation. GOLD ABC has borrowed 500 Bitcoins at an average cost of $60,000 per Bitcoin from Zhenghe for a one-year term at 8% interest per annum. The joint venture plans to use AI algorithms for secondary market trades and intends to open a position in gold over the next three months.

This strategic move represents MMV's expansion into digital assets and blockchain technology, positioning the company at the forefront of financial innovation. MMV, known for its animation and entertainment content under the Aotu World brand, aims to leverage this collaboration to enter a new industry and create value for shareholders.

Positive

• Establishment of joint venture GOLD ABC DIGITAL TECHNOLOGY CO.,
• Expansion into digital assets and blockchain technology
• Acquisition of 500 Bitcoins for algorithmic trading
• Plans to invest in gold as an alternative asset

Negative

• High-risk investment in volatile cryptocurrency (500 Bitcoins at $60,000 each)
• 8% annual interest on borrowed Bitcoins
• ownership (20%) in the joint venture

SHANGHAI, Aug. 28, 2024 /PRNewswire/ -- MultiMetaVerse Holdings Limited (NASDAQ: MMV) ("MMV" or the "Company"), a leading animation and entertainment company for young consumers in China, today announced the establishment of a new joint venture, GOLD ABC DIGITAL TECHNOLOGY CO., LIMITED ("GOLD ABC"), and its initial strategic investments.

MMV previously partnered with ZHENGHE HOLDING CO., LIMITED ("Zhenghe"), a blockchain technology service provider, to form GOLD ABC, a Hong Kong-based entity focused on algorithms to achieve self-holding asset appreciation. This collaboration aims to leverage the expertise of both parties in financial technology, blockchain, and traditional finance, and potentially creates a valuable opportunity for MMV to enter into a new industry. MMV owns 20% of GOLD ABC and ZHENGHE is responsible for GOLD ABC's daily management and operation.

Earlier this month, GOLD ABC borrowed 500 Bitcoins at an average cost of $60,000 per Bitcoin from Zhenghe for a one-year term at 8% interest per annum. GOLD ABC intends to utilize its established AI algorithms for secondary market trades to manage and increase the value of these assets. Over the next three months, GOLD ABC intends to open a position and buy gold, which GOLD ABC views as another quality alternative asset in the current political and economic environment.

Yiran Xu, Chairman and CEO of MMV commented, "The establishment of GOLD ABC represents a significant milestone in our strategic expansion into the rapidly evolving world of digital assets and blockchain technology. This joint venture positions MMV at the forefront of financial innovation."

Wenjin Li, Director and CEO of Zhenghe commented, "We are confident that these initiatives will not only drive our growth but also create substantial value for our shareholders. In this fast-paced industry, we believe our unique blend of technological expertise and forward-thinking strategies will enable us to capitalize  on  emerging  opportunities  and  establish  Gold  ABC  as  a  leader in  the  convergence  of traditional finance and cutting-edge technology."

About MultiMetaVerse Holdings Limited.

MultiMetaVerse  Holdings  Limited  (NASDAQ:  MMV) is an animation and entertainment company dedicated to providing a high-quality, immersive entertainment experience through original, user-generated, and professional user-generated content. MMV commenced animation production in 2015 under its signature Aotu World brand, which has attracted a broad following with its inspiring storyline and unique graphic style, particularly among younger audiences in China. By leveraging the company's established user base, MMV has built a diverse product portfolio, including animated content, comic books, short videos, collectibles, stationery, consumer products, and mobile games across the Aotu World brand. It has also developed and augmented new brands, stories, and characters, such as Neko Album.

For more information, please visit https://www.multi-metaverse.com/.
For investor and media inquiries, please contact:

MultiMetaVerse Holdings Limited
Investor Relations
E-mail: ir@multi-metaverse.com 

Safe Harbor Statement

This press release contains forward-looking statements which generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. Without limiting the generality of the foregoing, the forward-looking statements in this press release include descriptions of the Company's future commercial operations. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, such as the Company's inability to implement its business plans, identify and realize additional opportunities, or meet or exceed its financial projections and changes in the regulatory or competitive environment in which the Company  operates.  You  should  carefully  consider  the  foregoing  factors  and  the  other  risks  and uncertainties described in the Company's Annual Report on Form 20-F and other documents filed or to be filed by the Company with the SEC from time to time, which could cause actual events and results to differ materially from those contained in the forward-looking statements. All information provided herein is as  of  the  date  of  this  press  release,  and  the  Company  undertakes  no  obligation  to  update  any forward-looking statement, except as required under applicable law.

View original content:https://www.prnewswire.com/news-releases/multimetaverse-holdings-limited-announces-establishment-of-joint-venture-302232901.html

SOURCE MultiMetaVerse Holdings Limited

FAQ

What is the new joint venture announced by MultiMetaVerse Holdings (MMV)?

MultiMetaVerse Holdings (MMV) announced the establishment of GOLD ABC DIGITAL TECHNOLOGY CO., , a joint venture focused on algorithms for self-holding asset appreciation. MMV owns 20% of the venture.

How many Bitcoins did GOLD ABC borrow and at what cost?

GOLD ABC borrowed 500 Bitcoins at an average cost of $60,000 per Bitcoin from Zhenghe for a one-year term at 8% interest per annum.

What are GOLD ABC's plans for the next three months?

Over the next three months, GOLD ABC intends to open a position and buy gold, which it views as a quality alternative asset in the current political and economic environment.

How does this joint venture align with MMV's business strategy?

The joint venture represents MMV's strategic expansion into digital assets and blockchain technology, positioning the company at the forefront of financial innovation and potentially creating an opportunity to enter a new industry.