What's Going On With Gaxos.AI Stock Thursday?

Gaxos.AI Inc. (NASDAQ:GXAI) shares are moving higher Thursday after the company’s board approved the purchase of Bitcoin (CRYPTO: BTC) as a treasury reserve asset.

The Details: Gaxos.AI, an AI applications company, said its board of directors approved the purchase of up to $1 million in Bitcoin.

“As demand for Bitcoin grows and so does its acceptance as a major and primary asset class, we believe that Bitcoin will serve as a strong treasury reserve asset,” said Vadim Mats, CEO of Gaxos.

“With recent approval of Bitcoin ETFs and growing support from institutional investors, it is a great addition to our treasury strategy. Its limited supply and inflation-resistant characteristics provide a functional store of value.” 

The strategic move from Gaxos comes after Bitcoin soared to new all-time highs earlier this week. Bitcoin was trading around $89,000 at the time of writing, per data from Benzinga Pro.

Is GXAI A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Gaxos.AI‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Gaxos.AI does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Gaxos.AI will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

See Also: What’s Going On With Bitcoin Mining Stocks MARA Holdings, Riot Platforms And CleanSpark?

GXAI Price Action: At the time of publication, Gaxos.AI shares were up 11.1% at 1.61, according to data from Benzinga Pro.

Image: Image via Unsplash

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