Lion Group Holding (NASDAQ:LGHL) stock is on the rise Friday after the company announced news of a partnership with a blockchain expert.
A filing with the U.S. Securities and Exchange Commission (SEC) reveals that Lion Group Holding has signed an agreement with Yao Yongjie. Yongjie is an expert on blockchain technology and is the chairman of the board at Grandshores Technology Group Limited.
The agreement between Lion Group Holding and Yao will have them both working to promote and develop the blockchain industry. This will have them jointly creating a fund of up to $800 million to achieve this goal.
With Lion Group Holding and Yao working together, the two will focus on investing in the creation of cryptocurrency mines, mining, as well as the upstream and downstream of cryptocurrencies. The company specifically notes bitcoin (CCC:BTC) and Ethereum (CCC:ETH-USD) as targets.
Lion Group Holding’s deal with Yao has him serving as a chief technical adviser to the company when it comes to blockchain tech. It also grants him the right to purchase 6 million shares of LGHL stock at a price of $2 per share. These rights go into effect within 24 months of the contract’s signing.
This news comes alongside a spike in the trading for LGHL stock. As of this writing, more than 10 million shares have changed hands. For some perspective, the company’s average daily trading volume is only roughly 121,000 shares.
LGHL stock was up 99% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.