Nasdaq-listed gaming stock AGAE pops 105% after establishing DAT, eyes 'proprietary' RWA models

Shares of Allied Gaming & Entertainment (ticker AGAE) traded up more than 100% on Friday morning after the company made its initial investment in bitcoin and ether as part of its corporate treasury strategy. The specific amount purchased was not mentioned in the press release .

Allied Gaming said the move is its first step toward incorporating crypto on its balance sheet and lays the foundation for "broader blockchain and Real World Asset (RWA) tokenization initiatives."

The Nasdaq-listed stock hit a high of $2.18 and shares traded around $1.73 at publication time, up 89% according to Yahoo Finance data. The company has a market cap of $73 million.

"We see cryptocurrency not only as a store of value, but also as a strategic building block for the future of our business," CEO Yangyang (James) Li stated in the release. "Integrating blockchain and digital assets into our ecosystem is a natural progression of our vision to connect people through gaming, entertainment, and innovative financial technologies."

The company plans to expand blockchain payment options across its entertainment properties, develop tokenization models for real-world assets like live events and film IP, and lay the groundwork for stablecoin and utility token integration to boost engagement and liquidity.

The New York-based company produces a variety of e-sports and gaming-related content along with live and virtual events.

The value of the stacked crypto holdings of these companies recently crossed $120 billion, according to Yahoo Finance data, as small-cap companies seek to emulate the returns from the leading crypto treasury company, Strategy.