MOGU, a China-based online fashion retailer, saw its stock price jump by around 76%, trading at $4.40 and briefly hitting over $7 per share. This is a big move for the company, which had been stuck below $5 since peaking above $37 back in early 2021.

The sudden spike comes after MOGU announced plans to invest $20 million into cryptocurrencies and crypto-related assets. According to the company, this move is part of a strategy to modernize its business and expand its capabilities in artificial intelligence (AI). By adding digital assets to its financial portfolio, MOGU hopes to both diversify its holdings and strengthen its ability to deliver next-generation AI products and services.

MOGU joins a growing list of public companies that are buying cryptocurrency as a way to manage their cash differently. These companies are following in the footsteps of Strategy (formerly MicroStrategy), a U.S.-based firm that shifted from making software to buying Bitcoin. Strategy now holds over 638,000 Bitcoins, valued at more than $73 billion. Since 2020, its stock has soared by over 2,000%.

This trend of companies adding crypto to their treasuries has often led to short-term stock price boosts, as investors look for new ways to gain exposure to digital assets. However, not all outcomes have been positive. Strategy’s recent exclusion from the S&P 500 index raised concerns among analysts. According to JP Morgan, this decision could be a warning sign for other firms using crypto as a treasury strategy, especially during times when investor interest in crypto stocks starts to fade.

Bitcoin and Ethereum remain the two largest cryptocurrencies in the world. Solana, another major digital asset, is designed to compete with Ethereum by offering faster and cheaper transactions. Like Ethereum, Solana supports blockchain-based applications.

As more companies like MOGU explore the potential of crypto and blockchain technology, investors and analysts will be watching closely to see how these bold moves impact long-term growth and stock performance.