Hello Pal International shares fell more than 5% on Monday after the company announced it has reached an agreement with a company controlled by Shanghai Yitang Data Technology to acquire an interest in Dogecoin and Litecoin mining assets. Hello Pal offers an international live-streaming, language learning and social-crypto platform.
Under this agreement, Hello Pal (HP) will acquire an initial 51% stake in 12,500 mining platforms dedicated to the mining of Dogecoin and Litecoin. The deal comes with an option to increase this interest to 100%, for a period of two years after the completion of the transaction.
Yitang will ensure its mining assets are hosted at multiple sites in order to have risk diversification from potential future local government regulations that could hinder cryptocurrency mining,
Hello Pal’s Founder and Chairman KL Wong said, “With the signing of the definitive agreement with Yitang, we have taken the next step towards having cryptocurrency as an integral part of Hello Pal. We are also ecstatic that our choice of cryptocurrencies to mine seems to have been validated especially by the recent incredible surge in market interest and activity of Dogecoin. As far as we are aware, upon completion of this transaction, we shall be the only publicly listed company with primary exposure to Dogecoin.”
The transaction will most likely close before the end of April 2021 and is subject to certain conditions. (See Hello Pal International stock analysis on TipRanks)
A month ago, Fundamental Research analyst Siddharth Rajeev reiterated a Buy rating on the stock with a price target of C$2.67 (105% upside potential). Rajeev is the only analyst to have offered a stock rating for Hello Pal in the last three months.
Hello Pal scores a 4 out of 10 from TipRanks’ Smart Score rating system. This implies that the stock should perform in line with the overall market.