TLDR
- MOGU stock surged over 155% in pre-market trading after announcing plans to invest up to $20 million in cryptocurrencies
- Company plans to purchase Bitcoin, Ethereum, and Solana as part of treasury diversification strategy
- Board granted Chairman Chen Qi authority to determine timing and amount of crypto purchases
- Move designed to prepare company for next-generation AI products and services integration
- Trading volume jumped to 27 million shares compared to typical daily average of 5,500 shares
MOGU stock exploded in pre-market trading Thursday, jumping over 155% after the Chinese fashion and lifestyle company revealed plans to invest up to $20 million in cryptocurrencies. The announcement sent shares from $2.50 to around $7.35 before regular market hours.
The company’s board approved the crypto investment strategy on September 9, 2025. MOGU will focus on purchasing Bitcoin, Ethereum, and Solana, along with related securities and investment products.
The decision represents a major shift for the online fashion platform. MOGU operates as a social commerce site where influencers showcase trends and connect shoppers with products.
Chairman Chen Qi received full authority from the board to determine purchase timing and amounts. This gives the company flexibility to enter crypto positions when market conditions appear favorable.
Strategic Treasury Diversification
MOGU’s leadership views the crypto investment as more than simple diversification. The board stated this move will integrate digital assets into the company’s core holdings while preparing for next-generation artificial intelligence products and services.
The fashion company joins a growing list of corporations adopting cryptocurrency as a treasury asset. Similar announcements from other companies have triggered comparable stock rallies in recent months.
Trading volume reflected massive investor interest in the news. Approximately 27 million MOGU shares changed hands, compared to the three-month daily average of just 5,500 shares.
The stock surge extended MOGU’s year-to-date gains to over 15%. Shares have risen nearly 30% over the past twelve months before Thursday’s explosive move.
Market Response and Analysis
Pre-market investors drove the stock price up nearly 194% at peak levels. The reaction demonstrates how crypto-related announcements can trigger significant price movements in individual stocks.
MOGU’s announcement came as major cryptocurrencies showed positive momentum. Bitcoin gained 0.76% while Ethereum climbed 2.38% during the same period.
The company operates in China’s competitive e-commerce and social media landscape. MOGU built its business around key opinion leaders who influence purchasing decisions through product recommendations.
Wall Street analyst coverage remains limited for MOGU stock. TipRanks‘ AI analyst Spark currently rates the shares as Underperform with a score of 40 out of 100.
The AI analyst cited financial challenges including declining revenue and cash burn issues. These concerns contrast sharply with Thursday’s investor enthusiasm over the crypto strategy.
MOGU’s crypto investment represents approximately $20 million of company resources. The board has not disclosed what percentage this represents of total cash holdings or working capital.
The timing aligns with broader corporate adoption of digital assets. Companies across various sectors have added Bitcoin and other cryptocurrencies to their balance sheets over the past several years.
Market volatility remains a key consideration for crypto investments. Digital asset prices can fluctuate dramatically based on regulatory news, market sentiment, and macroeconomic factors.
MOGU’s filing included standard disclaimers about forward-looking statements and associated risks. The company acknowledged uncertainties related to market conditions, competition, and regulatory environments.
The crypto purchase plan requires execution over an unspecified timeframe. Chairman Chen Qi will make tactical decisions about entry points and position sizing.
Trading in MOGU shares is expected to remain volatile as investors digest the crypto investment news and assess its potential impact on the company’s financial position and growth prospects.
