Seven Stars Cloud Group Inc (NASDAQ: SSC) is climbing in the market at breakneck speeds early on in the trading session this morning. The gains are coming for good reason. The company announced got involved in a deal that could generate $24 billion in revenue. Of course, the news proved to be exciting to investors who are sending the stock on a run for the top. Today, we’ll talk about:
- The deal;
- what we’re seeing from SSC as a result; and
- what we’ll be watching for ahead.
SSC Announces $24 Billion Deal
As mentioned above, Seven Stars Cloud Group is having an incredibly strong start to the trading session this morning as news breaks that the company has entered into an agreement that has the potential to generate massive amounts of revenue. In a press release issued early this morning, the company announced a ground-breaking, three-year, exclusive $24 billion deal with the National Transportation Capacity Co Ltd (NTS).
The deal surrounds the issuance of fixed income lease financing-based products, through a global strategic alliance network which operates in a regulatory compliant manner. These products are for large-scale electric bus upgrades as part of China’s new regulations that require all busses to be replaced by electric busses by 2021.
According to the terms of the agreement, SSC will provide two financing campaigns. One of the campaigns will take place in China, underwhich the company will conduct financing activities through the sale of fixed income products to raise about $8.75 billion over 3 years. The other side of the agreement is the global side, under which SSC will exclusively provide both fixed income and asset digitization products to raise $15 billion over the course of 3 years. In a statement, Bruno Wu, Chairman and CEO at SSC, had the following to offer:
This is a truly ground-breaking deal globally for blockchain-based fintech companies to gain such a large-scale, asset-backed, contract. It represents a new era and a paradigm shift in the way in which we view asset-based financial products; and it will serve as a window to the world on how asset value and liquidity can be unlocked by traditional industries as we take fixed income products into the digital era. By combining regulated financial infrastructure, and the market confidence in asset-based products, with AI-enhanced risk management and the dynamics of blockchain-enabled fractionalization, securitization, tokenization, and global trading of token-based offerings, we are delivering the next-generation of financial products which will be compelling for both asset-rich industries and investors alike. It’s an exciting time for SSC, and we’re extremely pleased and honored to partner with NTS on this offering.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Seven Stars, the news proved to be overwhelmingly positive. After all, the new agreement will likely generate massive amounts of revenue. Not to mention, it further validates the company’s work in the blockchain sector. So, it comes as no surprise that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:46), SSC is trading at $ 3.21 per share after a gain of $1.24 per share or 63.18% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on SSC. In particular, we’re interested in following the story surrounding the $24 billion deal that was announced today. Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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