Cryptyde (NASDAQ:TYDE) stock is climbing more than 5% today after the company announced that it has agreed to acquire Forever 8. Cryptyde utilizes blockchain to develop tools for consumer-facing sectors. Meanwhile, Forever 8’s solutions provide funding to sellers on e-commerce platforms.
TYDE is paying $56.4 million for Forever 8. However, the price could jump to $93.4 million if Forever 8 meets certain performance marks. Cryptyde CEO Brian McFadden said the following about the news:
“This is a phenomenal opportunity for us as Cryptyde begins to develop and deploy its core suite of products that will help power the future of Web3.”
What’s Web 3.0? Essentially, it’s the next phase of the web, using “blockchains, cryptocurrencies, and NFTs to give power back to the users in the form of ownership.” Web 3.0 extensively utilizes crypto in order to allow “builders and users” of the internet to own it.
With that said, here’s what investors should know about TYDE stock amid the news.
TYDE Stock: Cryptyde and Forever 8
Based on sales data, Forever 8’s automated system determines how much funding it can grant vendors. Forever 8 then buys and sells inventory on the behalf of its customers. Cryptyde says it intends to enable Forever 8 to also provide funding to vendors in the form of crypto.
The acquisition is expected to be closed later this quarter or early in the fourth quarter of 2022.
Back in August, TYDE disclosed that its Q2 net revenue surged to $7.34 million for the period, up from $3 million during the same period a year earlier. However, the company’s net loss also jumped to $3.46 million, compared with $1.18 million during Q2 2021.
As of the end of Q2, Cryptyde had nearly $10 million of cash and cash equivalents. The company also had $12.66 million of total liabilities.
Whether this latest acquisition can help TYDE stock long-term remains to be seen.
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On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.