Blue Hat to acquire major stake in UAE fintech firm GTCM By Investing.com

XIAMEN, China – Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT), a company previously known for its augmented reality (AR) interactive games and toys, has announced its intent to acquire a 60% share of GTC Multi Trading DMCC (GTCM), a UAE-based financial technology firm.

The acquisition, which will be conducted through the issuance of ordinary shares, marks Blue Hat’s strategic pivot towards the fintech sector, particularly in artificial intelligence (AI)-assisted trading of gold, precious metals, and financial derivatives.

The move follows a framework cooperation agreement with GTC Group LLC and signifies Blue Hat’s commitment to integrating AI technology with financial services. CEO of BHAT, Mr. Chen Xiaodong, expressed that the acquisition is a crucial step in the company’s transition to AI-driven financial solutions. “This partnership signifies a pivotal shift in our company’s strategy towards the fintech sector,” said Mr. Chen.

Mr. Zheng, founder of GTCM, also shared his enthusiasm for the partnership, emphasizing the potential for AI technology to revolutionize financial transactions, customer service, and product innovation. Both parties anticipate that the collaboration will lead to significant advancements in AI-driven financial services and foster growth within the fintech industry.

This strategic move is a part of Blue Hat’s broader efforts to diversify its business portfolio. The company, which has a history in communication services and IDC business, is now aiming to position itself as a leading intelligent commodity trader on a global scale.

The information regarding this acquisition is based on a press release statement from Blue Hat Interactive Entertainment Technology. The company has advised that forward-looking statements involved in the press release are subject to various risks and uncertainties and that actual results may differ materially from those projected. For further details, investors are directed to Blue Hat’s investor relations website and SEC filings.

InvestingPro Insights

As Blue Hat Interactive Entertainment Technology (NASDAQ: BHAT) embarks on its strategic pivot into the fintech sector with the acquisition of a majority stake in GTC Multi Trading DMCC, investors and market watchers are closely monitoring the company’s financial health and stock performance.

According to InvestingPro data, Blue Hat’s market capitalization currently stands at a modest $64.81 million USD. Despite the company’s significant revenue growth in the last twelve months as of Q4 2023, with an impressive increase of 3255.57%, it is important to note that this growth has not translated into profitability, as the company has reported a gross profit margin of -15.53% over the same period.

Investors considering Blue Hat as part of their portfolio should be aware of the company’s challenges in sustaining profit margins. An InvestingPro Tip highlights that Blue Hat suffers from weak gross profit margins, which is a critical factor to consider when evaluating the company’s long-term financial stability.

Moreover, while Blue Hat operates with a moderate level of debt—an important aspect of financial health—the company has not been profitable over the last twelve months, which could be a concern for potential investors. On a more positive note, another InvestingPro Tip indicates that Blue Hat’s liquid assets exceed its short-term obligations, providing some reassurance about the company’s ability to meet its immediate financial liabilities.

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