- Triller Group stock moved from nowhere and went parabolic.
- The company has started accumulating SpaceX shares.
- The surge will likely be short-lived as the treasury model is misfiring.
Triller Group stock went parabolic on Thursday, reaching a high of $5.25, its highest point since December 19. At its peak on Thursday, it was up by 638% from its lowest level this year, with its market cap soaring to $53 million. Still, this rally will likely be short-lived.
Triller Group is Becoming a SpaceX Treasury Company
Triller Group, a company running a TikTok rival, surged after announcing it would acquire SpaceX shares, mirroring a strategy used by companies like BitMine and Strategy.
The company noted that the acquisition of these shares began before it went public. In a statement, the company said:
“SpaceX is one of the most extraordinary companies of our generation, and we are securing meaningful exposure to it at a compelling entry point and placing it at the very heart of our balance sheet.”
Still, this approach poses significant risks to investors. For one, anyone can buy SpaceX shares in the open market and benefit as its price rises.
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At the same time, recent history shows that treasury companies are facing major challenges. Strategy stock has slumped from over $400 to $85 today, while BitMine dropped from $160 last year to $13 today. Most similar companies, like American Bitcoin and Strive, have also plunged.
Triller Group’s business is also struggling as it has failed to gain market share from companies like TikTok and Instagram. This explains why the stock has plunged by over 98% from its record high. Indeed, the stock was delisted by Nasdaq and only resumed trading after a reverse split. In a note, the CEO said:
“I believe this is a highly valuable company. I believe the market does not yet reflect the value of our assets, our platform, our strategy, or our ability to execute.”
ILLR Stock Price Technical Analysis
The daily chart shows that the ILLR stock price has rebounded after forming a double-bottom pattern at $0.4950, its lowest level in December last year and June this year.
It then continued to rise in the pre-market session and is nearing its highest point this week. It has also moved above the 23.6% Fibonacci Retracement level at $4.46. As a result, it has moved above the 50-day moving average, while its volume jumped to over 216 million, well above the average of 3.9 million.
Therefore, this rebound will likely be short-lived, as we see regularly with meme stocks. In the long term, there is a risk that it will drop below the double-bottom level of $0.4950.
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