Hall of Fame Resort & Entertainment Co (NASDAQ: HOFV) is screaming for the top, squeezing the shorts out of their positions, after the company announced that it has entered into a partnership with Dolphin Entertainment.
Here’s the scoop:
Hall of Fame Resort & Entertainment Company Announces Partnership
According to the release, the companies will work together to offer non-fungible tokens, or NFTs. These NFTs will allow fans of professional sports, including football, baseball, and others, to buy and sell exclusive content developed by Hall of Fame and its partners.
With NFT speculation being the reason for the gains in Cinedigm Corp (NASDAQ: CIDM) and Color Star Technology Co. Ltd. (NASDAQ: CSCW), it comes as no surprise that a company that has actually announced a goal of bringing new NFTs to market would be climbing.
In a statement, Michael Crawford, President and CEO at Hall of Fame Resort & Entertainment Co, had the following to offer:
We are thrilled to be partnering with Dolphin, an emerging thought leader in the NFT market, to accelerate our entry into the space. The significant progress we have made on our strategic initiatives since going public in July 2020 has allowed us to be in a position where we can offer individuals the opportunity to own NFTs associated with original content centered on professional football. This partnership will provide us with another opportunity to unlock additional value from the one-of-a-kind media projects we have in development.
HOFV’s entry into the NFT space is a reflection of the overwhelming demand for this relatively new form of purchasing digital art and media. HOFV expects that its first NFT offering will be connected to its Heisman 2 Hall (“H2H”) platform, created in partnership with Elite Team Holdings, LLC, which represents the exclusive group of only 10 athletes that have won a Heisman Trophy and been inducted into the Pro Football Hall of Fame.
Focusing on this space at a time when NFTs are surging in popularity demonstrates our company’s ability to leverage direct access to exclusive content and to a robust pipeline of brand and intellectual partnerships.
The above statement was followed up by Bill O’Dowd, CEO at Dolphin Entertainment. Here’s what he had to offer:
HOFV is a leader at the crossroads of professional football and entertainment, which makes them a perfect first partner for Dolphin’s new NFT division. Dolphin’s best-in-class entertainment marketing companies and ability to design, produce, release and promote NFTs will deliver tremendous value for this powerful partnership. We are thrilled to collaborate with HOFV and their partners on creating and marketing sought-after digital collectible NFTs for the vast sports fanbase.
There’s a Big Short Squeeze Here
Considering the overwhelming value of NFTs, the news released late yesterday by Hall of Fame Resort & Entertainment company is exciting. However, that excitement is exacerbated by the potential for a massive short squeeze here.
Keep in mind, HOFV stock currently trades with short interest sitting at around 27%.
That’s incredibly high, and when heavily shorted stocks begin to tick up, those who own those short positions race to buy shares and cut the bleeding in what’s known as the short squeeze. That looks to be what’s taking place this morning.
Short squeezes have the potential to lead to gains in multiples. So, while the premarket activity is exciting, the upward movement could just be beginning.
HOFV stock is one to pay close attention to. Ultimately, the company is entering into a high value market, one that investors see as a major opportunity.
At the same time, a short squeeze is in play, and as the members of the Wall Street Bets Reddit have proven, these types of moves have the potential to lead to dramatic runs.