Blue Hat Stock Bounces Back Following Back-to-Back Registered Common Stock Offerings: Retail Upbeat
Blue Hat, formerly a communication services company, has since pivoted to commodity trading, primarily ethanol and gold and diamond jewelry.
FollowBlue Hat Interactive Entertainment Technology ($BHAT) shares rose in Friday’s premarket trading following Wednesday’s 25.65% plunge. Xiamen, China-based Blue Hat engages in bulk commodity trading business in the country.
The company was formerly a communication services company and producer of augmented reality (AR) interactive entertainment games, toys, educational materials etc. It has since then pivoted to commodity trading, primarily ethanol as well as diamonds and gold jewelry.
The premarket gains in Blue Hat stock come after a volatile start to 2025. After rising in the first session of the year, the stock ended flat in the very next session.
However, it plunged nearly 40% on Monday after the company said it has entered into securities purchase agreements with several institutional investors to sell 55.2 million shares in a registered direct offering at an offer price of $0.08 per share.
The stock recovered on Tuesday, rising nearly 28%, before reversing course on Wednesday after the company announced another registered direct offering of 55.95 million shares at an offer price of $0.07 per share.
Blue Hat stock plummeted over 86% in 2024
In September, the company said it received a notification from the Nasdaq regarding non-compliance with the minimum bid price requirement from July 25, 2024 through September 5, 2024. The company has until March 5, 2025 (180 calendar days from the notification date), to regain compliance and avoid a potential delisting.
Blue Hat said its board will consider options if it is not eligible for additional time to regain compliance
Retailers watching the stock on the Stocktwits platform were largely bullish.
One watcher said the stock could rally once it clears the $0.10 resistance.
Another lauded the company for generating a net profit of $20 million from its gold investment within four months.
In premarket trading, the stock was up 8.77% at $0.0930 as of 5:20 a.m. ET.
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