synopsis

The decision to implement the reverse split came after the stock was trading deep in penny stock territory, which puts it at risk of potential delisting by the Nasdaq exchange.

MicroCloud Hologram, Inc. (HOLO) shares rallied over 45% in Monday’s after-hours session following a 20%+ plunge in regular trading. 

The decline was accompanied by nearly double the average volume.

The Shenzhen, China-based company’s stock began to trade on a reverse split-adjusted basis on Monday, with the split ratio at 1-for-40. The reverse split and an increase in the authorized share capital were approved at the company’s extraordinary general meeting held on March 24. 

The company provides holographic technology services, including holographic light detection and ranging (LiDAR) solutions and holographic digital twin technology services.

The reverse split came after the stock was trading deep in penny stock territory, which put it at risk of potential delisting by the Nasdaq exchange.

MicroCloud Hologram stock has fallen 94% this year on top of the 93% plunge in 2024.

This extended slide has come despite the company’s efforts to ride the crest of the  DeepSeek wave and its Bitcoin (BTC.X) foray.

In late January, the company announced its plans to adopt DeepSeek’s R1 large-language model (LLM) for its holographic artificial intelligence (AI) application. 

The following month, the company said it planned to invest up to $200 million in Bitcoin and other digital assets, reasoning that the move was strategic to integrate its core technologies with blockchain applications.

The company has also experimented with the emerging technology of quantum computing. At the end of 2024, it announced that its R&D in quantum technology had helped it develop an advanced technological solution that helps avoid the risk of quantum state distortions caused by abrupt energy changes or external disturbances.

MicroCloud Hologram stock was the top trending ticker on Stocktwits late Monday and among the top five most active stocks.

Retail sentiment toward the MicroCloud Hologram improved to ‘neutral’ (48/100) by late Monday from the ‘bearish’ mood that prevailed a day ago. The message volume also ticked up to ‘normal’ levels.

HOLO sentiment meter and message volume as of 9:42 p.m. ET, April 21 | source: Stocktwits

A bullish watcher said they would watch the stock on Tuesday and decide to add some shares depending on the volume and price action.

Another user, however, was not that optimistic and expected a crash on Tuesday.

MicroCloud Hologram has 20.03 million outstanding shares, and the short interest rate is 7.50%, according to Koyfin data.

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