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Snail Inc. is selling its shares to fund its \u201cdigital asset initiative,\u201d including a possible stablecoin.\n<\/p>\n
Snail, Inc., the publicly traded U.S. subsidiary of one of the first online video game developers in China, said it plans to raise funds to explore digital assets, including the launch of its own USD-pegged stablecoin<\/a>.<\/p>\n In a press release<\/a> published on Thursday, Snail said it has entered an agreement with investment bank H.C. Wainwright & Co. to sell up to $4.5 million worth of its Class A common stock in an at-the-market offering. The company said the proceeds would primarily support its \u201cdigital asset initiative,\u201d including evaluating and potentially launching a proprietary U.S. dollar-backed stablecoin.<\/p>\n Some funds would also serve as reserve assets for the stablecoins Snail plans to issue, according to the press release.<\/p>\n After the announcement late last week, Snail, which trades on the Nasdaq under the ticker SNAL, jumped 6.3% from $0.95 to $1.01. Today, SNAL is trading near $0.99, up 4.6% over the last five days, but down nearly 30% on the month. The firm went public via IPO<\/a> in November 2022. <\/p>\n In an Aug. 7 filing<\/a> with the U.S. Securities and Exchange Commission, the company explained the move, stating that \u201cexploring stablecoin infrastructure may position us as an early mover within the digital entertainment industry.\u201d The filing also noted that the firm was still evaluating integrating stablecoin infra \u201cas part of our broader innovation roadmap,\u201d but had not yet come to a decision.<\/p>\n The company added that it may require \u201cadditional capital to support our strategic digital asset initiative\u201d referring to licensing requirements and compliance costs.<\/p>\n Founded in 2000, Snail Inc.\u2019s parent company, Suzhou Snail Digital Technology \u2014 also known as Snail Digital \u2014 calls itself \u201cone of China\u2019s largest 3D digital culture entertainment producing companies.\u201d The gaming company is mainly focused on multiplayer online (MMORPGs), real-time strategy, and casual games. Its global registered user base has reached<\/a> over 70 million, per the company\u2019s LinkedIn profile.<\/p>\n The Defiant reached out to Snail for comments on their digital asset plans, but has not heard back by press time. <\/p>\n