All eyes are on Mullen Automotive (NASDAQ:MULN) today following the electric vehicle (EV) company’s fourth-quarter earnings, an offering of securities and the resale of up to 2.49 billion shares of common stock. That has overshadowed Bitcoin (BTC-USD) technology company Ault Alliance (NYSEMKT:AULT), formerly called Bitnile, taking a major stake in MULN.
As of Dec. 31, Ault owned a total of 71.96 million shares of Mullen, equivalent to a 4.07% ownership stake. That cements Ault as the largest stockholder of the company, according to Whale Wisdom. Ault last reported a stake of 2.41 million shares. Bollinger CEO Robert Bollinger trails in second with ownership of 51.07 million shares as of Q3.
Ault Alliance Bets Big on MULN Stock
Ault’s significant position cements its conviction in the early-stage EV company. The company seems to be making strides, such as recently delivering its Go vehicle, formerly called the I-Go, to Newgate Motor Group in Ireland.
There seems to be risk inherent in Ault’s bet, however. During Q4, Mullen reported a net loss before accrued preferred dividends and non-controlling interest of $378.46 million dollars, down from a loss of $156.06 million a year ago. Meanwhile, weighted average shares outstanding as of Dec. 31 totaled 1.36 billion, up from just 17.47 million shares year-over-year (YOY). That spells heavy dilution for shareholders.
At the same time, Mullen’s majority acquisition of Bollinger and purchase of Electric Last Mile Solutions’ assets bolsters its commercial portfolio. These acquisitions require significant payments, although CEO David Michery believes they will pay off in the future.
The deadline for 13F investors to file their quarterly update was yesterday. As a result, we can take a look at how other investors traded Mullen during Q4. Vanguard tallies in as the third-largest stockholder with a 45.67 million share stake. The exchange-traded fund (ETF) provider reported adding 23.07 million shares during Q4. BlackRock (NYSE:BLK) is also a major stockholder with ownership of 26.42 million shares. BlackRock acquired 137,059 shares during Q4.
It’s not known what Ault plans on doing with its position, such as becoming an activist investor for the company. Still, the big bet symbolizes a high degree of confidence.
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On the date of publication, Eddie Pan 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.
