Taoping (NASDAQ:TAOP) stock is on the move Wednesday after the company announced plans to expand its business into the NFT (Non-Fungible Token) market.
According to a press release from the company, it plans to launch an NFT business unit. Taoping is setting up Qian Wang as the chief investment officer of the new business division.
News of a new NFT division comes alongside the company acquiring a 51% stake in Render Lake Tech, a subsidiary of Genie Global. The company is funding this transaction with $1.53 million worth of TAOP stock.
This has it offering up a total of 144,204 shares of TAOP to Genie Global. These shares will be distributed in four phases. The first will take place before March 31, 2022, and the final will come before Sept. 30, 2023.
Render Lake Tech plays into Taopin’s NFT plans. The company’s focus is on cloud development, including “cloud desktop, cloud rendering, cloud computing, NFT (Non-Fungible Token), and cloud gaming businesses.” Wang is also acting as the general manager of Render Lake Tech.
Jianghuai Lin, chairman and CEO of Taoping, said this about the news sending TAOP stock higher today.
“The acquisition of Render Lake is an important strategic step for TAOP. We believe cloud desktop, cloud computing, and cloud gaming business have explosive growth potential in the 5G era. Also, cloud rendering and NFT can provide powerful technical support for TAOP’s new media, smart cloud, and online education platform businesses.”
TAOP stock was seeing heavy trading following today’s news. As of this writing, nearly 14 million shares of the stock have changed hands. To put that in perspective, the company’s daily average trading volume is closer to 2.7 million shares.
TAOP stock was up earlier on Wednesday before dipping 2.1% in the afternoon. It’s worth noting that the stock is still up 249.9% since the start of the year.
Taoping joins a growing list of companies that are entering the NFT business as investors seek out more stocks in the space to take stakes in.
The list of NFT companies continues to grow larger as more announce plans to cash in on the market. That includes Liquid Media (NASDAQ:YVR), Color Star Technology (NASDAQ:CSCW), and Dapper Labs. Investors can learn more about these stocks below.
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- YVR Stock: The News That Has Hot NFT Play Liquid Media Skyrocketing Today
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.