Shares of MicroAlgo (NASDAQ:MLGO) stock are surging higher by over 650% after the company announced that it would establish a micro-consciousness quantum research center in collaboration with WiMi (NASDAQ:WIMI), its parent company. The research center will combine several disciplines, including physics, polymer chemistry and philosophy, in order to advance the study of consciousness.
“The micro-consciousness quantum research center builds a bridge between basic science and applied technology, closely connecting the theoretical research of basic science and the practice of applied technology,” said MicroAlgo.
The center’s research will focus on four aspects: the Quantum computing and consciousness model, brain-computer interface technology, big data artificial intelligence (AI) and quantum consciousness and quantum-driven generative consciousness.
MicroAlgo and WiMi’s research center will also collaborate with Chinese universities and research institutions on shared research, laboratory building and training.
MicroAlgo did not provide any further details, such as the costs to build such a center and any potential revenue impact. As a result, the move in MLGO is highly unusual and likely to reverse, echoing previous unusual moves in Chinese companies like AMTD Digital (NYSE:HKD) and Magic Empire Global (NASDAQ:MEGL). It’s also worth noting that MLGO’s float of 1.87 million shares is extremely small, making the stock susceptible to sudden, volatile movements.
MicroAlgo’s website is also bare-bones and does not provide much information about the company.
5 Investors Betting Big on MLGO Stock in Q1
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. However, MicroAlgo’s institutional ownership is almost nonexistent, likely due to its status as a penny stock, falling sales and a lack of profitability.
As of the first quarter, only four 13F filers disclosed a stake in MLGO stock, a decline of nine filers compared to the prior quarter. These filers own a total of 10,862 shares, down by 77.52% from 48,313 shares during Q4. In addition, zero hedge funds reported a stake in the company.
The message from the Q1 13F data is quite clear: no one really cares or knows about MicroAlgo. With that in mind, let’s take a look at its top shareholders as of Q1:
- WiMi: 3.69 million shares. WiMi Q1 13D filing showed that it added 800,000 shares.
- Chairman Jie Zhao: 1.85 million shares, accurate as of Dec. 31. These shares are owned by WiMi, while Zhao owns 100% of its Class A ordinary shares.
- UBS Group (NYSE:UBS): 9,444 shares. UBS added 9,298 shares during Q1.
- Tower Research Capital: 967 shares. Tower Research added 821 shares during Q1.
- Morgan Stanley (NYSE:MS): 450 shares. Morgan Stanley sold 204 shares during Q1.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
