Tag: AtlasClear Holdings Stock

After-hours trading last Friday saw a 62.13% increase in the value of AtlasClear Holdings, Inc. (NYSE: ATCH) shares, which ended the day at $3.81.  The company’s most recent financial report, which demonstrated strong growth and consistent expansion in its core businesses, set off the remarkable stock rise.

Growth and Stability in Financial Performance

AtlasClear’s financial statistics for the quarter that ended on December 31, 2024, showed steady growth in net income and sales.  The company’s numbers showed consistent quarterly increase, and Wilson-Davis, its subsidiary, recorded a sizable standalone, non-GAAP net income.  On a standalone non-GAAP basis, Wilson-Davis made more than $13.2 million in sales and more than $1.75 million in net profits for the whole 2024 calendar year.

The market capitalization of the business, which presently represents almost half of the net income for the year, supports AtlasClear’s operations’ worth and financial stability.  Additionally, the company’s investment banking business keeps growing, which helps to increase total income.

Enhancing Capabilities through a Strategic Partnership

In an effort to further strengthen its financial and technological infrastructure, AtlasClear recently entered into a strategic agreement with LocBox to leverage its advanced stock loan inventory management platform and API. This collaboration is set to enhance ATCH’s correspondent clearing services through Wilson-Davis, allowing for more efficient management of hard-to-borrow stock inventories.

LocBox, a web-based platform, enables entities to monetize their hard-to-borrow inventory by providing short sellers with legal, compliant locates and pre-borrows. By offering traders reliable and verifiable stock locates, the platform ensures compliance with short-selling regulations while mitigating settlement risks and eliminating potential naked short selling.

New Technology to Unlock Revenue Potential

The fully paid lending sector remains an underutilized area of business for Wilson-Davis. By using LocBox’s technology, AtlasClear can use its current hard-to-borrow book for stock lending, opening up new revenue streams.  This collaboration further demonstrates ATCH’s dedication to innovation and financial expansion by fitting in well with its FinTech-driven culture.

Investors are nonetheless hopeful about AtlasClear’s future prospects as the firm maintains its financial growth and fortifies its market position through strategic alliances.

AtlasClear Holdings, Inc. (NYSE: ATCH) experienced a notable upswing in its stock value during the post-market period, surging by 8.37% to $2.20. This upward momentum somewhat ameliorated the decline witnessed in AtlasClear stock during the regular trading session, which had plummeted by 53.97% to conclude at $2.03. The after-hours rally in ATCH shares ensued subsequent to AtlasClear’s completion this month of its previously announced merger with Quantum FinTech Acquisition Corporation (QFTA), a publicly listed special purpose acquisition entity.

This amalgamation, greenlit by Quantum’s shareholders on November 3, 2023, saw the birth of AtlasClear Holdings, Inc., with its common stock commencing trading on the NYSE on Monday, February 12, 2024. Moreover, AtlasClear disclosed the finalization of its acquisition of broker-dealer Wilson-Davis & Co., Inc., and reiterated the ongoing validity of its definitive agreement to acquire Commercial Bancorp of Wyoming. It is anticipated that upon securing all requisite regulatory approvals, Commercial Bancorp will be assimilated into a subsidiary of AtlasClear.

This strategic maneuver marks a significant milestone for AtlasClear as it embarks on a mission to furnish a comprehensive technological and financial solution tailored for small and medium-sized financial entities. In its newfound status as a publicly traded entity, ATCH endeavors to expand both organically and through strategic acquisitions, while also bolstering the balance sheet for its clearing firm and banking operations.

In conjunction with the finalization of the merger, AtlasClear has instructed the escrow agent to release 4,000,000 of Quantum’s founder shares, previously held in escrow pursuant to the escrow agreement originating from Quantum’s initial public offering. This action aligns with the amendment to the escrow agreement disclosed on October 31, 2023. Having consummated the business amalgamation, the AtlasClear team now directs its attention towards addressing a void in the capital markets wherein smaller institutions, broker-dealers, and asset managers have encountered challenges.

By integrating an operational and profitable correspondent clearing firm with an operational and profitable Federal Reserve member bank, and subsequently integrating technology to manage the front office, back office, and risk management functions of these institutions, ATCH endeavors to provide a singular platform where these smaller financial entities can fulfill all pertinent operational requirements, encompassing trade clearing, settlement, and banking services.