FingerMotion Inc. (NASDAQ: FNGR) has announced an agreement to acquire a 9.9% stake in Lyken AI Computing Inc., operating as Lyken.AI, from Alset AI Ventures (TSX.V: GPUS; OTCQB: GPUSF; FSE: 1R60) for $500,000 in FingerMotion common stock. This transaction, subject to TSXV approval on behalf of Alset AI, signifies FingerMotion's strategic entry into the enterprise computing market. It represents the first step in a broader strategy to build a recurring-revenue enterprise compute business alongside its existing mobile data and telecommunications operations.
The acquisition involves no cash consideration at closing, and Alset AI is expected to retain a 90.1% interest in Lyken. FingerMotion intends to develop an enterprise offering encompassing GPU and cloud compute capacity, secure storage, private low-latency networking, and deployment support. This initiative leverages Lyken's previously disclosed ecosystem, which includes partnerships with NVIDIA, Dell Technologies Canada, and established data-center providers. The company plans to pursue enterprise compute as a distinct scalable business and may seek to increase its participation in Lyken and its underlying infrastructure over time, subject to commercial performance, capital availability, and applicable regulatory and exchange requirements.
This move diversifies FingerMotion's portfolio, which has traditionally focused on mobile payment and recharge platform solutions in China. The company's core business has been growing its user base, and it has been developing additional value-added technologies to market to its users. The vision is to rapidly grow the user base through organic means and have this growth develop into an ecosystem of users with high engagement rates utilizing its innovative applications. Developing a highly engaged ecosystem of users would strategically position the company to onboard larger customer bases. FingerMotion eventually hopes to serve over 1 billion users in the China market and eventually expand the model to other regional markets.
The enterprise computing market presents significant opportunities for growth, driven by increasing demand for AI, cloud services, and data processing capabilities. By entering this market, FingerMotion aims to capitalize on these trends and create a new revenue stream that complements its existing operations. The partnership with Lyken.AI, which has established relationships with major technology providers, provides FingerMotion with access to advanced infrastructure and expertise. This strategic investment is expected to enhance FingerMotion's competitive position and support its long-term growth objectives.
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