TLDR
- WIMI Hologram Cloud Inc. has increased its ownership stake in MicroAlgo Inc. to 67.65%
- WIMI has committed to a ten-year lock-up period for all currently owned MicroAlgo shares
- MicroAlgo specializes in central processing algorithm solutions for internet advertisement, gaming, and intelligent chips
- The company recently unveiled a multi-simulator collaborative algorithm based on subgraph isomorphism
- MicroAlgo entered into a $20 million convertible bond purchase agreement in October 2024
WIMI Hologram Cloud Inc. (NASDAQ: WIMI) has substantially increased its ownership position in MicroAlgo Inc. (NASDAQ: MLGO). The company now holds a 67.65% stake in MicroAlgo, according to an announcement made on March 27, 2025.
The hologram technology provider now owns 40,000 Class A ordinary shares, 1,810,658 restricted Class A ordinary shares, and 44,878,261 restricted Class B ordinary shares of MicroAlgo. This represents more than two-thirds of MicroAlgo’s total outstanding shares.
In a move aimed at stabilizing market expectations, WIMI has also committed to a ten-year lock-up period for all its currently owned MicroAlgo shares. The company stated it has no plans to sell or otherwise dispose of any MicroAlgo ordinary shares during this period.
Company Focus and Innovations
MicroAlgo Inc. focuses on developing central processing algorithm solutions. These solutions are specifically tailored for the internet advertisement, gaming, and intelligent chip industries.
The company has recently unveiled an innovative technology. This is a multi-simulator collaborative algorithm based on subgraph isomorphism.
This new algorithm aims to overcome limitations in quantum computing. It works by breaking down the constraints of qubit numbers while maximizing distributed computing benefits.
The technology dissects large quantum circuits into several smaller sub-circuits. This allows computational tasks to be distributed across multiple quantum computers or simulators.
Through this approach, MicroAlgo is effectively utilizing limited quantum bit resources. The result is enhanced execution efficiency of quantum circuits.
MicroAlgo Inc. has been actively managing its financial structure. The company entered into a $20 million convertible bond purchase agreement on October 7, 2024.
These bonds have a maturity period of 360 days. They are convertible into common shares at a price equal to 70% of the lowest closing market price.
This conversion price is calculated based on the 60 trading days preceding any conversion request. Following requests from creditors, MicroAlgo plans to issue new shares.
These new shares will be priced at $0.80 per share. This issuance is intended to fulfill the terms of the previously mentioned agreement.
Market Context
The broader stock market has been experiencing volatility. This is due to geopolitical tensions, trade policies, and shifting investor sentiments.
Recent developments have contributed to market uncertainty. The U.S. administration’s decision to impose tariffs on Canada and Mexico has been a factor.
The broader market has seen a 5.2% decline over the past month. The Dow Jones Transportation Average has declined over 17% from its November peak.
Despite these challenges, penny stocks like MicroAlgo present potential opportunities for investors. These stocks offer accessible entry points for those with limited capital.
Academic research indicates that penny stocks can offer higher expected returns. This is due to size and liquidity premiums associated with smaller market capitalization stocks.
Hedge Fund Interest
According to data from Insider Monkey for Q4 2024, MicroAlgo has limited hedge fund interest. Only one hedge fund reported holding a stake in the company.
This places MLGO in the 12th position on a list of popular penny stocks available on Robinhood. While the stock shows potential, analysts suggest that some AI stocks may offer stronger investment opportunities.
The increased stake by WIMI Hologram Cloud represents a notable vote of confidence. As a leading global Hologram Augmented Reality technology provider, WIMI’s substantial investment signals belief in MicroAlgo’s future prospects.
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