Hello Pal International Inc (HP) shares jumped 10% on Thursday after the company announced it had acquired a majority interest in startup Crypto Pal Technology, creating the first listed company focused on mining Dogecoin.
Hello Pal develops social messaging, language learning, and live-streaming mobile apps, whereas Crypto Pal is a mining platform controlled by Shanghai Yitang Data Technology Co. Ltd.
Under the agreement, Hello Pal will acquire a 51% stake in Crypto Pal. The acquisition cost is C$3.5 million, including C$1.5 million in cash and 1,800,000 common shares, based on Dogecoin valuation of $0.055.
Crypto Pal has 12,500 mining rigs dedicated to the mining of Dogecoin and Litecoin in multiple locations. Yitang Data Technology will manage operations.
Hello Pal’s Founder and CEO KL Wong said, “Our acquisition of Crypto Pal is the next step in bringing the world closer together and promoting social tolerance. Dogecoin, often referred to as ‘the people’s coin’, is being rapidly accepted and adopted internationally. We anticipate gains to our userbase and live-streaming services from the integration of Dogecoin. By acquiring Crypto Pal at a minimal price, we are able to focus our strong cash position to implement our vision for Hello Pal’s suite of complementary apps as well as carry out strategic acquisitions.”
As a result, Hello Pal is upgrading its platform to allow access and use of cryptocurrency in its products. (See Hello Pal International Inc stock analysis on TipRanks)
Two months ago, Fundamental Research analyst Siddharth Rajeev reiterated a Buy rating on the stock with a price target of C$2.67, for 112% upside potential. Rajeev is the only analyst to have offered a stock rating for Hello Pal in the last three months. Shares have gained approximately 425% year-to-date.
TipRanks’ Smart Score
Hello Pal scores a 5 out of 10 on TipRanks’ Smart Score rating system. This implies that the stock should perform in line with the overall market.
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