MOGU’s board announced on Sept. 9, 2025, that it will put up to $20,000,000 of corporate assets into digital currencies like Bitcoin, Ethereum and Solana to diversify its treasury and support next-generation AI products, with Chairman Chen Qi given authority to pick timing and amounts.
The move comes as the KOL-driven retailer faces falling revenue per share over the past 5 years, even though its operating margin has widened. The company hopes crypto will add balance sheet options, but tokens are volatile and will not, on their own, fix weak sales.
Board move and reasoning
In China, some firms and funds are cautiously reentering the crypto space, illustrated by Guoxiong Capital’s 200,000,000 yuan pledge to Web3, a sign that private investors see opportunities even as regulators and companies proceed carefully.
The board framed the shift as a strategic allocation, and the firm will look to buy digital assets and related investment products.
The stated goal is to broaden treasury holdings and to back capabilities seen as useful for future AI work. Chen Qi will set the timing and amounts. The company hopes the move will add options to its balance sheet as it faces slow top-line growth.
MOGU’s business picture
MOGU runs an online fashion and lifestyle site that leans on key opinion leaders. The site links merchants, influencers and shoppers. That model gives it a clear niche in China’s crowded retail sector.
Still, the company has seen revenue per share fall over the last 5 years. That decline points to trouble in keeping sales growing.
At the same time, MOGU has shown some efficiency gains, and its operating margin has grown, which suggests the firm spends less to earn each unit of sales.
Also Read: China’s Linklogis Share Price Surges 23% Following Announcement Of Partnership With XRP Ledger
That is a positive sign. It does not erase the tougher problem. The firm must find ways to lift revenue while keeping profits steady.
Market position and risks
MOGU sits in the Retail – Cyclical industry, and it faces rivals that offer online services and content. The KOL-driven approach and rich media content may set MOGU apart.
However, standing out is hard when many platforms chase the same users. If demand slips, the firm could struggle to turn content into steady sales.
China’s slow return to crypto
Across China, some firms are starting to tiptoe back into crypto, and the shift is gradual. Companies are cautious. They want to avoid regulatory trouble, but still, a few investors and private groups have begun to put money into Web3 and tokens. That cautious re-entry shows there is interest, but also clear limits.
One recent example is Guoxiong Capital, a private equity firm in Qingdao.
The firm set aside 200,000,000 yuan, about $27,900,000, to back Web3 and crypto investments. That kind of commitment shows private players see opportunity, and it also means new capital could flow into startups and token projects.
For a public firm like MOGU, private bets offer a backdrop of growing interest in the field.
What could this mean for MOGU?
If MOGU adds crypto to its assets, it could gain exposure to a new market. That may ease short-term cash needs or offer upside if prices rise. The move also signals that management is looking for ways to diversify beyond core retail sales.
Still, buying crypto will not fix weak sales by itself, and the company will need to keep investing in content, merchant relations and user growth to lift revenue per share over time.
MOGU’s vote to allocate up to $20M to digital currencies is a notable step. It comes as the firm wrestles with falling revenue and a crowded online market. The plan puts the company on record as willing to try new assets to shore up its balance sheet.