Mogu stock pops nearly 200% after board approves 'up to' $20 million DAT allocation

Share of the Nasdaq-listed small-cap Mogu Inc (ticker MOGU) surged over 190% Thursday morning after the company announced approval for a digital asset treasury (DAT).

The China-based company's board approved a strategic allocation of up to $20 million of corporate assets to digital currencies, primarily bitcoin, ether, and solana, including related securities and investment products.

"The board believes that by integrating digital assets into its core assets, the Company can diversify not only its treasury holdings but also its operational capabilities essential for next-generation AI products and services," the firm said in a press release. "The board of directors authorizes Chairman Chen Qi to determine the timing and amount of digital currency acquisition."

Following in the popularity of Strategy, the rise of corporate DATs has accelerated this year. This week, the value of the stacked crypto holdings of these companies crossed $120 billion, according to The Block's data dashboard.

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Mogu, which went public in 2020, is a China-based e-commerce platform specializing in online fashion and lifestyle content.

At publication time, MOGU stock was up 110% to $5.25 per share, giving the company a market capitalization of around $45 million. It already saw more than 60 million shares traded, compared to its daily average of around 16,000, according to Yahoo Finance data. Shares had traded under the $5 level since late 2021.