MicroCloud Hologram (HOLO) has been in freefall, dropping so dramatically over the past year that it now seems locked in a constant battle to avoid delisting from Nasdaq.
By late 2024, HOLO had cratered by over 99%, plunging from $129 to just $0.25. As of February, it was still down 76% year-to-date.
The Chinese holographic technology and quantum blockchain security company briefly rode the same kind of meme stock wave that sent GameStop soaring in 2021.
HOLO took off in May 2024, climbing 17.7% on May 13 before skyrocketing another 73% on May 14 — right after Roaring Kitty, the infamous GameStop trader, posted on X for the first time in years.
Retail meme stock traders tend to pile into heavily shorted stocks, and HOLO had 75% short interest when it spiked to $129.
But, as with most meme-fueled rallies, the surge didn’t last. When stock movements have nothing to do with fundamentals, they almost always collapse just as quickly as they rise.
Now, MicroCloud is scrambling for a turnaround strategy — one that has little to do with performance.
Betting on bitcoin and reverse split to stay afloat
GameStop jumped 9.2% last month after reports surfaced that CEO Ryan Cohen was considering investing in bitcoin. But MicroCloud has already beat GameStop to the punch.
Last week, the company announced it had purchased up to $200 million in bitcoin and cryptocurrency-related securities derivatives. As of February 28, the company reported $8.13 million in total accumulated dividends from these investments.
“These assets will be incorporated into HOLO’s capital reserve strategy, aiming to enhance financial stability and long-term growth potential through diversified investments,” the company said in a statement.
It also plans to allocate its $303 million in cash reserves toward derivatives and technology development in bitcoin-related blockchain, quantum computing, quantum holography, and AI-powered AR.
So far, the crypto bet hasn’t moved the needle on the stock.
Beyond its foray into cryptocurrencies, MicroCloud will decide later this month whether to move forward with a 40-to-1 reverse stock split and an increase in authorized share capital.
The plan is to streamline its capital structure and strengthen its market position.
The global hologram market is expected to expand by $13.33 billion between 2024 and 2028, according to Technavio, pointing to potential long-term growth.
But Technavio also warns that high manufacturing costs pose a major challenge for the industry, making scale essential for survival.
Nasdaq gave MicroCloud until August 12 to get its stock back above the $1 threshold required for listing compliance.HOLO closed Tuesday at $1.03.
Your email address will not be published. Required fields are markedmarked