Aurora Mobile, a China-based technology company listed on Nasdaq, is preparing to make a significant investment in cryptocurrencies. According to the new plan approved by the company's board of directors, Aurora will invest up to 20% of its current cash and cash equivalents in crypto assets such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Sui (SUI).
The investment decision is positioned as part of the company's long-term value creation strategy. In its official statement, Aurora Mobile stated that this move is a "measured step" aimed at both increasing its balance sheet diversity and being a part of financial innovation.
What is the aim of this move?
In its statement, Aurora Mobile stated that this investment does not only aim to preserve value, but will also support the company's growth strategy and prepare the ground for potential partnerships. The company's post on the X (formerly Twitter) platform included the following statements:
"This share allocated to crypto assets puts us at the forefront of financial innovation and unlocks the potential for long-term value creation in the rapidly evolving digital economy."
Aurora Mobile’s crypto investment will not affect the company’s core business operations or current growth plans. On the contrary, the alternative earning avenues offered by digital assets will provide the company with an opportunity to diversify its portfolio independent of traditional markets.
Aurora Mobile shares rise
Aurora Mobile CEO and Chairman Weidong Luo also commented on the investment decision, stating that this move will increase portfolio diversity by providing access to a new asset class with low correlation, while also creating a financial strategy more in line with technological developments. According to Luo, this investment is also a strategic step towards modernizing the company’s treasury:
“At a time when blockchain and crypto assets are reshaping the global financial infrastructure, we see this investment as not only a financial but also a technological positioning.”
Following Aurora’s statements, there was movement in the company’s shares traded on Nasdaq. Aurora Mobile shares rose by 4.78 percent to $11.01 on Tuesday, the day the announcement was made. The company’s total market value is $66.9 million.
Institutional interest in cryptocurrencies at its peak
Aurora Mobile’s decision is a new example of the recent trend of increasing institutional crypto investments. Leading assets such as BTC and ETH are solidifying their place in institutional portfolios as long-term value storage instruments. On the other hand, highly scalable projects such as Solana and SUI continue to attract investor interest. Aurora Mobile also took its place among the companies investing in cryptocurrency.
The company also announced that it has repurchased 295,179 American Depository Shares (ADS) in the past period.
