What happened
Shares of Seven Stars Cloud Group (NASDAQ: SSC), also known as Ideanomics, rose on Tuesday after the blockchain company announced a deal with a leading auto financing company in China. The stock was up about 10.1% at 12:45 p.m. EDT.
So what
Seven Stars has signed a three-year deal with First Auto Loan to provide two financing campaigns, one in China and another across other markets. The financing will support rideshare vehicles throughout China, going through both Seven Stars' blockchain ecosystem and traditional financial distribution channels.
Image source: Getty Images.
About $5.1 billion of financing activity will take place in China, with $1 billion taking place outside China. The activity outside China will be exclusive to Seven Stars.
Seven Stars Co-CEO Bruno Wu talked highly of the deal: "This exemplary opportunity represents the blockchain-based fintech services that Ideanomics has set forth to accomplish as part of our Company's Fixed Income Financial Digital Asset Strategy. It truly represents a paradigm shift in global financing activities and Ideanomics will continue to set a trailblazing path which will benefit all aspects of automotive and ride-sharing industries."
Now what
Shares of Seven Stars have now more than doubled since the beginning of August, buoyed by an earlier financing deal involving electric buses. Seven Stars didn't disclose how this new deal would affect its revenue or profits. The blockchain company generated $144.3 million of revenue and a $9.8 million net loss in 2017.
