180 Life Sciences Corp (NASDAQ: ATNF), a biotech firm, saw its shares skyrocket by 900% on Wednesday following the acquisition of a blockchain-enabled platform.
This strategic move marks a significant shift in the company’s focus as it pivots into the online gaming industry.
The acquisition will allow 180 Life Sciences to establish a business-to-consumer (B2C) online casino, with plans to expand into the business-to-business (B2B) space.
As a result, the company is positioning itself as a technology solutions provider for global gaming operators.
By the morning of the announcement, ATNF stock reached a high of nearly $16, compared to just $1.18 on October 8th.
ATNF’s shift into the online gaming market
180 Life Sciences aims to launch its first online casino in early 2025, assuming successful fundraising and commercialization efforts.
The company plans to initially focus on high-growth international markets, including India, Brazil, Canada, Germany, and Colombia.
In a press release, the company expressed confidence that its newly acquired Gaming Technology Platform, combined with its experienced management team and Nasdaq listing, gives it a unique position as a consolidator in the gaming industry.
This pivot comes as the iGaming casino market is expected to reach a $97 billion valuation by the end of 2024, with the crypto-enabled segment growing even faster.
For a company like 180 Life Sciences, this move is seen as a significant opportunity, although the firm remains under-covered by Wall Street analysts.
Can 180 Life Sciences sustain its stock rally?
Despite the surge, investors should remain cautious.
The company has announced that its B2C online casino will prioritize operational efficiency and transparency.
It will source games from third-party suppliers to enhance its front-end customer interface, as mentioned in its press release.
The announcement comes shortly after 180 Life Sciences regained compliance with Nasdaq listing requirements and finalized a separation agreement with former executive Sir Marc Feldmann, issuing over 57,000 shares as part of the deal.
While the spike in ATNF’s stock price is accompanied by a massive increase in trading volume—over 80 million shares exchanged hands compared to its usual daily volume of 64,000—there are concerns about whether the stock can maintain this momentum.
Investors should be aware that 180 Life Sciences does not currently offer dividends, making it less attractive to income-focused investors.
Additionally, the rapid rise in stock price could be short-lived if the company faces challenges in executing its online gaming strategy.
The post This biotech stock soared a whopping 900% on Wednesday: here’s why appeared first on Invezz