XIAMEN, China, May 02, 2025 (GLOBE NEWSWIRE) -- Blue Hat Interactive Entertainment Technology ("Blue Hat" or the "Company") (NASDAQ: BHAT) today released its audited financial results for the fiscal year ended December 31, 2024. Under the strategic guidance of management, the company actively seized opportunities in the gold industry, completing the strategic procurement of 1 ton of physical gold for approximately $66.49 million in August 2024 and establishing deep partnerships with leading enterprises in t ...

Revenue Performance - Total revenues decreased by $54,962,543, or 74.59%, to $18,724,190 for the year ended December 31, 2024, compared to $73,686,733 for the year ended December 31, 2023[338]. - Total revenues increased by $71,490,779, or 3,255.57%, to $73,686,733 for the year ended December 31, 2023, compared to $2,195,954 for 2022, primarily due to expansion in diamond trading and commodity trading[359]. - Revenue from diamond trading reached $15,152,777 for the year ended December 31, 2023, a new business initiated in Q3 2023[364]. - The diamond trading business increased from $15,152,777 for the year ended December 31, 2023, to $18,724,190 for the year ended December 31, 2024, representing a growth of 23.57%[339]. - The company discontinued its information services and commodity trading businesses during the year, leading to a 100% decrease in revenues from these segments[340][341]. Operating Expenses and Profitability - Total operating expenses decreased by $24,034,595, or 80.01%, from $30,037,627 for the year ended December 31, 2023, to $6,003,032 for the year ended December 31, 2024[352]. - Gross profit increased by $392,098, or 33.98%, to $1,545,949 for the year ended December 31, 2024, from $1,153,851 for the year ended December 31, 2023[348]. - Gross profit decreased by $83,665, or 6.76%, to $1,153,851 for the year ended December 31, 2023, with a gross margin of 1.57% compared to 56.35% in 2022[369]. - Operating expenses increased by $20,888,000, or 228.17%, from $9,150,000 in 2022 to $30,040,000 in 2023, mainly due to a rise in general and administrative expenses[373]. - Other expenses increased by $4,849,830, or 2226.02%, from $217,870 for the year ended December 31, 2023, to $5,067,700 for the year ended December 31, 2024, primarily due to investment write-offs and increased foreign currency charges[354]. Net Loss and Financial Position - Net loss decreased by $19,580,634, or 67.28%, from a net loss of $29,110,417 for the year ended December 31, 2023, to a net loss of $9,524,783 for the year ended December 31, 2024[356]. - Net loss increased by $12,313,336, or 130.92%, to $21,718,417 for the year ended December 31, 2023, compared to a net loss of $9,405,081 in 2022[358]. - As of December 31, 2024, the company had working capital of $29.42 million and cash equivalents of $14,300, indicating sufficient liquidity to support operations for the next twelve months[380]. - The company reported a net cash used in operating activities of $9.77 million for the year ended December 31, 2023, with a net loss from continued operations of $29.11 million[386]. - Net cash used in operating activities from continued operations was $884,952 for the year ended December 31, 2024, primarily due to a net loss of $9.5 million[385]. Future Outlook and Strategic Plans - The company expects to begin monetizing its gold holdings, which appreciated by approximately $25 million in value, through strategic sales and financing arrangements in 2025[343]. - The gold market is projected to remain strong, with prices expected to reach between $3,100 and $3,500 per ounce throughout 2025, validating the company's strategic acquisition of 1,000 kilograms of gold in 2024[395]. - The company plans to use retained earnings for business growth, with no current plans to declare dividends[383]. - The company is actively pursuing patent, trademark, and copyright protection for its proprietary technologies to secure its competitive advantages[394]. Debt and Obligations - As of December 31, 2024, the outstanding balance on short-term bank loans was $146,341, with an interest rate of 6.58%[381]. - Future minimum payments under contractual obligations total $2,753,969, with $146,341 due within one year[398]. - The company has no off-balance sheet arrangements that would affect liquidity or capital resources[397].

Core Viewpoint - Blue Hat Interactive Entertainment Technology has regained compliance with Nasdaq's minimum bid price requirement, closing the matter with Nasdaq [1][3]. Group 1: Compliance with Nasdaq - On September 6, 2024, Nasdaq notified Blue Hat that its bid price had fallen below $1.00 per share for 30 consecutive business days, violating Listing Rule 5550(a)(2) [2]. - The company was given until March 5, 2025, to regain compliance but received a delisting determination on January 24, 2025, due to a closing bid price of $0.10 or less for ten consecutive trading days [2]. - As of March 28, 2025, Blue Hat's closing bid price was at or above $1.00 for the past 10 consecutive trading days, thus regaining compliance [3]. Group 2: Monitoring and Future Compliance - Following the compliance regaining, Blue Hat will be under a mandatory panel monitor for one year, until April 2, 2026, to ensure continued compliance with the minimum bid price requirement [4]. - If the company fails to meet the minimum bid price requirement for 30 consecutive trading days, it will not be allowed to submit a compliance plan, and a delisting determination will be issued [4]. Group 3: Company Background - Blue Hat was previously a provider of communication services and is now focused on AR interactive entertainment games, toys, and educational materials in China [5]. - The company is expanding into commodity trading, aiming to become a leading intelligent commodity trader globally [5].

Industry Insights - The international gold market has shown significant strength, with COMEX gold futures prices surpassing $3,040 per ounce and London spot gold prices reaching $3,030 per ounce, both setting new historical records [1] - Global central banks have purchased over 1,000 tons of gold for three consecutive years, indicating a strong demand for gold as a safe-haven asset [1] - Analysts from Macquarie Group predict an average gold price of $3,150 per ounce in Q3 2025, with Goldman Sachs forecasting a year-end price of $3,100 [2] Company Performance - Blue Hat's 1-ton gold holdings could appreciate to approximately $103 million if gold prices exceed $3,200 per ounce, representing a gain of over $40 million from the initial investment [3] - The CEO of Blue Hat emphasized that gold has proven to be a strong value-preserving asset amid global economic uncertainties, contributing to the company's financial stability and future business expansion [3] - Blue Hat is transitioning from a provider of communication services and AR interactive entertainment to becoming a leading intelligent commodity trader, leveraging its technological expertise [4]

Industry Insights - The international gold market has shown significant strength, with COMEX gold futures prices surpassing $3,040 per ounce and London spot gold prices reaching $3,030 per ounce, both setting new historical records [1] - Global central banks have purchased over 1,000 tons of gold for three consecutive years, indicating a strong demand for gold as a safe-haven asset [1] - China's central bank's gold reserves have increased for three consecutive quarters, now totaling 73.45 million ounces, further emphasizing the demand for safe-haven assets [1] Price Predictions - Analysts from Macquarie Group predict that the average gold price in Q3 2025 may reach $3,150 per ounce, with potential peaks of $3,500, while Goldman Sachs anticipates a year-end price of $3,100 [2] - CITIC Futures suggests that a potential interest rate cut by the Federal Reserve could lead to a significant premium on gold due to market conditions [2] Company Performance - If gold prices exceed $3,200 per ounce, Blue Hat's 1-ton gold holdings could appreciate to approximately $103 million, representing a gain of over $40 million from the initial investment [3] - The CEO of Blue Hat highlighted that gold has proven to be a strong asset for value preservation and appreciation amid global economic uncertainties, providing a solid foundation for the company's strategic plans in the precious metals sector [3] Company Overview - Blue Hat, previously focused on communication services and AR interactive entertainment, is now expanding into commodity trading, aiming to become a leading intelligent commodity trader globally [4]

Core Viewpoint - Blue Hat Interactive Entertainment Technology has successfully completed a significant gold transaction, enhancing its position in the precious metals market amid rising international gold prices [1][4][5]. Group 1: Transaction Details - The final payment for the gold transaction was completed between Blue Hat's subsidiary and Macau Rongxin Precious Metals Technology Co., Ltd. [1] - The transaction involved the purchase of 1 ton of gold at a price of 473.78 yuan per gram (approximately $1,990 per ounce), totaling 474 million CNY [4]. - The book profit from this transaction has exceeded 25 million CNY, demonstrating the company's market acumen in the precious metals field [4][5]. Group 2: Market Context - In March 2025, international gold prices reached historic highs, with COMEX gold futures and London spot gold surpassing $3,000 per ounce [3]. - Factors contributing to the gold price rally include escalating geopolitical risks, expectations of a Federal Reserve rate cut, and increasing gold reserves by central banks, including China [3]. Group 3: Strategic Implications - The agreement includes a 3-year lock-up period for shares, reflecting Macau Rongxin's trust in Blue Hat's management and strategic direction [2]. - The successful transaction is expected to significantly enhance Blue Hat's industry status and provide financial support for future expansions in the gold industry chain [5]. - The appreciation potential of gold assets is anticipated to benefit the company's long-term returns [5]. Group 4: Company Background - Blue Hat was previously focused on communication services and AR interactive entertainment but is now expanding into commodity trading, aiming to become a leading intelligent commodity trader globally [6].

Core Insights - Blue Hat Interactive Entertainment Technology (BHAT) has signed a strategic cooperation agreement with Zongheng Capital Group to create the world's first gold RWA (Real World Assets) tokenization project, marking a significant milestone in the integration of traditional gold industry and blockchain technology [1][5]. Group 1: RWA Tokenization Overview - RWA tokenization involves digitizing real-world assets like real estate and gold through blockchain technology, allowing these tokens to circulate freely on the blockchain, representing both ownership and associated income rights [2]. - As of the end of 2024, over $13 billion worth of real assets have been tokenized globally, with a notable demand for tokenized gold products, such as Paxos Gold (PAXG), which saw over 20% market growth in 2024 [2]. Group 2: Advantages of Gold RWA Tokenization - Increased liquidity: Tokenization allows gold to be traded more efficiently globally, enabling investors to buy and sell gold tokens without relying on traditional financial institutions [3]. - Inclusive finance: Tokenization breaks down high-value gold assets into smaller tokens, significantly lowering investment barriers and allowing more small and medium investors to participate [3]. - Transparency and trust: Blockchain's transparency ensures the authenticity of gold asset information and traceability of transaction records, allowing investors to access operational data and profit distribution [3]. - Smart asset management: Utilizing smart contracts for automatic profit distribution reduces human intervention and operational costs, enhancing asset management efficiency [3]. Group 3: Collaboration Between BHAT and Zongheng Capital - BHAT aims to leverage its expertise in the gold industry, while Zongheng Capital, a licensed financial services company in Hong Kong, brings over 20 years of experience in fund management and wealth management for high-net-worth clients [4]. - The collaboration will focus on the digital transformation of gold assets, ensuring each token is backed by real gold, optimizing liquidity through partnerships with major exchanges, and adhering to regulatory requirements for a secure investment environment [5]. Group 4: Future Outlook - The CEO of BHAT expressed confidence that gold RWA tokenization will revitalize the gold market and provide investors with more flexible and efficient investment options [6]. - Zongheng Capital's leadership highlighted that RWA tokenization represents a crucial step in merging traditional finance with blockchain ecosystems, aiming to set an industry benchmark through this collaboration [6]. - As RWA tokenization technology matures and gains market acceptance, the gold RWA tokenization project is expected to become a significant breakthrough in the global financial market, creating more value for investors and transforming the future landscape of the gold industry [7].

Core Viewpoint - Blue Hat Interactive Entertainment Technology and Axis Capital Group have signed a strategic cooperation agreement to develop the world's first gold RWA (Real World Assets) tokenization project, marking a significant integration of the gold industry with blockchain technology [1][9]. Industry Overview - RWA tokenization involves digitizing real-world assets like gold through blockchain, allowing for on-chain trading and attracting a diverse group of investors by enhancing liquidity and reducing transaction costs [2][3]. - By the end of 2024, over $13 billion worth of real assets had been tokenized globally, with tokenized gold products, such as Paxos Gold (PAXG), experiencing over 20% market growth in 2024 [3]. Advantages of Gold RWA Tokenization - Enhanced liquidity allows for more efficient global trading of gold assets, enabling investors to buy and sell tokens without relying on traditional financial institutions [7]. - The fractionalization of high-value gold assets lowers investment thresholds, promoting financial inclusivity for small and medium investors [7]. - Blockchain technology ensures transparency and trust, providing real-time data on tokenized assets and their returns [7]. - Smart contracts facilitate automated distribution of returns, improving asset management efficiency and reducing operational costs [7]. Collaboration Details - Blue Hat and Axis Capital Group will utilize blockchain technology to ensure that each token is backed by real, fully reserved gold assets [8]. - Axis Capital will leverage its financial market resources to optimize liquidity solutions for gold tokens, attracting more investors [8]. - Both companies will adhere to regulatory requirements to ensure the project's legality and security, providing a reliable investment environment [8]. Future Outlook - The collaboration aims to set an industry benchmark for the digital transformation of gold assets, with expectations that RWA tokenization will reshape the future of the gold industry [9].

Core Viewpoint - Blue Hat Interactive Entertainment Technology plans to implement a 1-for-100 reverse stock split effective March 17, 2025, to adjust its share structure and potentially enhance its market position [1][2][3] Group 1: Reverse Stock Split Details - The reverse stock split will convert every 100 shares of the Company's ordinary shares into one share, increasing the par value from $0.01 to $1 per share [2] - The total number of ordinary shares before the split is 493,820,989, and trading will continue under the symbol "BHAT" on the Nasdaq Capital Market [1][2] - No fractional shares will be issued; any resulting fractions will be rounded up to the next whole number [2] Group 2: Company Background - Blue Hat was previously focused on communication services and the development of AR interactive entertainment games, toys, and educational materials in China [4] - The Company is now expanding into commodity trading, aiming to become a leading intelligent commodity trader globally [4]

Core Insights - Blue Hat Interactive Entertainment Technology has completed the purchase of one ton of gold from Rongxin Precious Metal Technology Co., Ltd, finalizing the transaction through the issuance of ordinary shares [1] - The gold purchase was executed at a price of RMB 473.70 per gram (approximately US$1,900 per ounce), and with the gold delivery price exceeding US$2,780 per ounce at the beginning of 2025, the company's book assets have appreciated by nearly US$25 million [2] Strategic Positioning - The company has shifted its focus towards gold and supply chain businesses, validating its strategic moves over the past two years [2] - Blue Hat plans to increase gold reserves through strategic alliances with international partners, optimize supply chain operations via intelligent platform development, and promote technological innovation through blockchain-based trading platforms [3][4] Future Objectives - In 2025, the company aims to enhance its gold reserves, improve supply chain efficiency, and accelerate the digitization of gold trading [3][4] - The company remains committed to innovation and sustainable development, leveraging its growth and management capabilities to deliver long-term value to shareholders [5] Company Background - Blue Hat was previously involved in communication services and AR interactive entertainment but is now transitioning to become a leading intelligent commodity trader [6] - The company announced a strategic shift to an AI-driven financial services enterprise in March 2024, focusing on gold trading and commodity-related businesses [6] - Blue Hat has made significant strides in regulatory compliance, achieving Category A Dealer status in Precious Metals and Stones in June 2024, which supports its long-term development in the gold and commodities sector [6]