MicroAlgo Plunges 9.08% on Share Issuance Plan

On March 25, 2025, MicroAlgo's stock price dropped 9.08% in pre-market trading.

MicroAlgo Inc. has announced plans to issue new shares at $0.8 per share to fulfill a debt obligation. This move is part of a convertible bond purchase agreement, where the company will issue additional shares to meet its financial commitments. The decision to issue shares at a significant discount to the current market price raises concerns about potential dilution and its impact on the stock's value.

The company's recent volatility and the upcoming share issuance have sparked investor caution. The substantial discount at which the new shares are being offered suggests that MicroAlgo may be facing liquidity challenges or operational deficiencies. This strategic move, while aimed at bolstering financial reserves, could also reflect underlying issues that investors need to be aware of.

MicroAlgo's decision to issue new shares at $0.8 per share comes at a time when the company is already experiencing significant volatility. The recent intraday gain of 455.16% and the overbought RSI indicate potential for price correction. The upcoming earnings announcement on April 10, 2025, adds further uncertainty to the company's financial outlook. Investors are advised to exercise caution given the high volatility and potential dilution impact on the stock's value.