On March 16, Meten Holdings Group Ltd. (METX) stock remained bullish throughout the day with a further gain of 7.56% in the after-hours. This bullish momentum is a result of the company’s latest announcement. On Wednesday morning, the company announced to have entered into a strategic cooperation agreement with Global Blockchain Inc. on March 08, 2022.
Thus, during the regular trading session, the stock surged up by 9.14% at a volume of 29.12 million shares. The volume remained above the average at 178%. METX closed the session at a price of $0.1720 per share. The stock continued to rise in the after-hours and maintain its bullish momentum. After increasing by a further 7.56%, the stock reached a value of $0.1850 per share in the after hours. The after-hours session also witnessed an active volume of 2.68 million shares.
The English Language Training and related services provider, Meten Holdings Group Ltd. has a market capitalization of $53.76 million.
METX’s Latest Strategic Alliance
As per Wednesday’s announcement, the company entered the agreement with Global Blockchain in order to share resources and explore market opportunities in the blockchain and digital currency industry. Bloackchain Global Inc. is a digital currency company focused on mining, investment, construction, and operation of digital currency mining farms and other businesses.
According to the terms of the agreement:
- Both companies will develop a long-term information communication mechanism for industry research.
- Global Blockchain will supply digital currency mining rig storage units to METX.
- METX will take part in the construction and operations of digital currency mining farms with Global Blockchain.
Hence, both the companies plan on investing in a 5-10 MW capacity digital currency mining farm construction in the U.S.
METX’s Financials
On November 22, 2021, the company declared its financial results for the third quarter of 2021.
Due to the upsurge of COVID-19 and a decrease in offline learning centers, METX’s Q3 2021’s revenue went down by 36.9% YOY to RMB187.9 million (US$29.2 million).
Moreover, gross profit also suffered a decline of 49.1% YOY to RMB64.0 million (US$9.9 million) in Q3 2021.
Additionally, the company had an adjusted net loss of RMB170.8 million (US$26.5 million) in Q3 2021. This marks an increase of 364.8% YOY.
Conclusion
METX stock has been on a bullish roll for the past few days as the company continues to explore opportunities in the metaverse and crypto markets. It was just two days ago that the company announced its alliance for developing its metaverse business.
