TuanChe Plans to Venture into the Cryptocurrency Sector, Seeking New Investment and Expansion Opportunities

Rhea-AI Summary

TuanChe (NASDAQ: TC) has announced its entry into the cryptocurrency sector through an advisory agreement with Waterside Inc. The agreement focuses on identifying suitable cryptocurrency mining equipment and related resources. This strategic move comes as Bitcoin recently surpassed $90,000 per coin on November 13, 2024. Waterside will provide consulting support in product design, specifications, electricity pricing, and hosting service rates. This initiative represents TuanChe's first step toward business diversification, aiming to create new growth opportunities and enhance shareholder value.

Positive

• Strategic expansion into the high-return cryptocurrency mining sector
• Partnership with established advisor Waterside Inc for technical guidance
• Business diversification potential to create new revenue streams

Negative

• Significant shift from core business model introduces execution risks
• High volatility and regulatory uncertainty in cryptocurrency sector
• Potential high capital requirements for mining equipment and operations

Insights

Financial Analyst

The pivot into cryptocurrency mining represents a significant but highly speculative strategic shift for TuanChe, traditionally an automotive marketplace platform. While Bitcoin's recent surge to $90,000 makes mining appear attractive, several critical factors warrant careful consideration:

• The company lacks prior experience in crypto mining, raising operational risk concerns
• Mining profitability is heavily dependent on Bitcoin price volatility and electricity costs
• The partnership with Waterside appears preliminary, without specific investment commitments or financial projections
• Regulatory risks in China regarding cryptocurrency operations could impact implementation

The strategic pivot suggests potential cash flow challenges in their core business, as companies typically explore such dramatic shifts when facing headwinds in their primary market. Investors should monitor concrete details about capital allocation, operational plans and projected returns before drawing conclusions about this venture's viability.

BEIJING, Nov. 21, 2024 /PRNewswire/ -- TuanChe Limited ("TuanChe," "Company," "we," or "our") (NASDAQ: TC) is pleased to announce that it has entered into an advisory agreement with Waterside Inc. ("Waterside") to assist TuanChe in identifying suitable cryptocurrency mining equipment and related resources. This collaboration marks an important step in TuanChe's exploration of new business opportunities in the digital economy.

On November 13, 2024, the price of Bitcoin surged again, surpassing $90,000 per coin. This latest surge further highlights the attractiveness of the cryptocurrency mining industry as a high-return sector. The engagement of Waterside aligns with TuanChe's strategic plan to diversify its business operations by venturing into the digital currency space. Waterside will provide consulting support in this area, including advice on product design, specifications, electricity pricing, and hosting service rates.

This initiative represents TuanChe's initial step into diversifying its business portfolio. By entering the cryptocurrency mining sector, the Company aims to lay a foundation for future growth while delivering greater value to its shareholders.

TuanChe plans to provide regular updates to its shareholders regarding the progress of this initiative.

About TuanChe Limited

Founded in 2010, TuanChe Limited (NASDAQ: TC) is China's leading automotive marketplace platform. TuanChe is dedicated to connecting automotive consumers with manufacturers, dealers, and service providers. By integrating its digital platforms with offline sales events, TuanChe offers comprehensive automotive marketing and transaction services. Through its integrated marketing strategies, TuanChe transforms individual and independent car purchases into large-scale group buying experiences, using an interactive many-to-many model.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, the Company's business plans and development, business outlook, which can be identified by terminology such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

For investor and media inquiries, please contact:

TuanChe Limited
Investor Relations
Tel: +86 (10) 6397-6232
Email: ir@tuanche.com

Piacente Financial Communications
Brandi Piacente
Tel: +1 (212) 481-2050
Email: tuanche@tpg-ir.com

 

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SOURCE TuanChe Limited

FAQ

What is TuanChe's (TC) new business venture announcement?

TuanChe (TC) announced its plans to enter the cryptocurrency mining sector through an advisory agreement with Waterside Inc to identify suitable mining equipment and resources.

When did TuanChe (TC) announce its cryptocurrency mining plans?

TuanChe (TC) announced its cryptocurrency mining plans on November 21, 2024.

What was Bitcoin's price when TuanChe (TC) announced its crypto mining plans?

According to the announcement, Bitcoin's price had surpassed $90,000 per coin on November 13, 2024.

What services will Waterside provide to TuanChe (TC)?

Waterside will provide consulting support to TuanChe (TC) in product design, specifications, electricity pricing, and hosting service rates for cryptocurrency mining operations.