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Fredericton, New Brunswick, Dec. 20, 2024 (GLOBE NEWSWIRE) -- NextGen Digital Platforms Inc. (CSE:NXT) (“NextGen” or the “Company”) is pleased to provide corporate updates on its existing business platforms, and to announce its new strategic expansion to acquire and hold positions in certain cryptocurrencies, including Solana (“SOL”), XRP (“Ripple”), and Dogecoin (“DOGE”).
Business Progress Updates
The AI-powering workstation purchases previously announced by the Company on November 28, 2024, are now in delivery, following logistical challenges by the Company’s initial supplier and the Company’s ensuing engagement of a new supplier to ensure timely procurement. These workstations will expand the Company’s hardware-as-a-service business known as its “Cloud AI Hosting” fleet, which represents a revenue-generating business that the Company continues to grow. Cloud AI Hosting was developed in-house by NextGen.
Additionally, the Company is pleased to report the successful completion of a social media marketing campaign for its e-commerce platform, PCSections.com (“PCS”). PCS has generated increased revenue relative to the prior fiscal quarter. PCS was developed in-house by NextGen and has been in operation for approximately two years.
Strategic Expansion
Consistent with NextGen’s longstanding mission to develop and acquire revenue-generating micro-technology digital platforms, the Company is excited to announce the launch of its third business line, which is intended to provide NextGen and its investors with exposure to the rapidly expanding cryptocurrency sector. This also helps diversify the Company’s technology holdings across e-commerce, artificial intelligence, and now Web3.
The Company’s strategic expansion to acquire and hold SOL, Ripple and DOGE is expected to establish NextGen as a publicly traded proxy for this curated basket of cryptocurrencies, enabling investors to access the growing digital asset market through traditional equity markets.
This expansion also leverages NextGen’s past exposure to the cryptocurrency sector through its inaugural platform, CryptoASICMining.com (“CAM”), the predecessor to PCS, as described in the Company’s press release dated November 29, 2024. While CAM ultimately evolved into PCS, which remains the Company’s first digital platform, it provided the Company’s leadership and operational personnel with valuable experience in digital asset infrastructure, and a better understanding of the potential opportunities within the sector.
As the digital asset market continues to rapidly evolve and mature, so must the Company. This strategic expansion reflects another step in the Company's evolution and broadens NextGen’s mission to include democratizing access to cryptocurrencies by providing investors with exposure to digital assets, without some of the complexities associated with direct cryptocurrency ownership. With this third business, NextGen adds a corporate objective of becoming a public entity providing exposure to a diversified cryptocurrency basket.
About Solana, XRP, and Dogecoin
1. Solana (SOL)
Solana is a high-speed, low-cost, large-scale blockchain platform launched in 2020. Having the capabilities to support up to 65,000 transactions per second at significantly low speeds, Solana is a leading platform for a large variety of decentralized finance (“DeFi”), non-fungible tokens (“NFTs”), and Web3 applications(1)(2). Solana’s growing developer ecosystem and widespread adoption make it a cornerstone of the cryptocurrency market.
NextGen’s Perspective:
By acquiring and holding Solana, NextGen intends to capitalize on the demand for marquee DeFi and blockchain-based applications and solutions, offering investors exposure to – in the opinion of management – one of the most promising and advanced ecosystems in the digital asset space.
2. XRP (Ripple)
XRP, developed by Ripple Labs, is a high-speed, scalable, and decentralized public blockchain aiming to improve global payments by enabling faster, cheaper, and more reliable cross-border transactions. Unlike traditional payment systems, which in some case may take days to settle, XRP proposes to facilitate near-instantaneous transactions at a fraction of the cost(3).
NextGen’s Perspective:
NextGen views XRP as an important asset in the future of global institutional finance, offering investors exposure to a cryptocurrency that aims to bridge the gap between blockchain and traditional banking systems.
3. Dogecoin (DOGE)
Initially launched as a meme-based open-source, peer-to-peer cryptocurrency, Dogecoin has evolved into an accepted digital asset real-world transactional utility. Supported by a passionate community and high-profile endorsements, Dogecoin is increasingly used for micropayments, tipping, and e-commerce(4). Its cultural relevance and simplicity make it an accessible entry point for new cryptocurrency users.
NextGen’s Perspective:
By acquiring and holding Dogecoin, NextGen hopes to opportunistically access mainstream adoption, providing investors with the opportunity to be a part of the expected growth and popularity of a community-driven cryptocurrency.
Interim Chief Executive Officer’s Statement:
“Our strategic expansion aligns with NextGen’s long-time mission, through which we give our investors exposure to exciting emerging micro-technology digital platforms that we have incubated or acquired. Through this expansion, we at NextGen hope to democratize cryptocurrency investing. By becoming a public proxy for a curated basket of these selected cryptocurrencies, we intend to offer investors a gateway into the digital asset economy. This strategy reflects our confidence in the long-term potential of blockchain technology and its impact on finance, commerce, and society,” said Alexander Tjiang, Interim CEO of NextGen.
Additional Corporate Developments
Further to the Company’s news release of December 20, 2024, in which the Company announced its three-month marketing engagement with Machai Capital Inc. (“Machai”), the Company has entered into an amending agreement with Machai dated December 20, 2024 (the “Machai Amending Agreement”) to amend the marketing services agreement with Machai (the “Original Machai Agreement”). Pursuant to the Machai Amending Agreement, the Company and Machai have agreed to decrease Machai’s marketing budget from C$155,000 (plus GST) to C$75,000 (plus GST) (the “Machai Budget”). All other terms of the Original Machai Agreement remain unamended. For more information regarding the Company’s engagement of Machai, please refer to its news release dated December 20, 2024. Machai and its principles' directly own 954,042 common shares of the company.
Market Opportunity
As global cryptocurrency adoption continues to accelerate, the market for publicly traded proxies that enable investors access into the digital asset space has become increasingly more important. Crypto activity and usage have reached all-time highs, with ~220 million active addresses as of September 30, 2024(5). However, barriers such as regulatory uncertainty, custodial complexities, and technical knowledge gaps limit direct access for many investors.
NextGen hopes to bridge this gap by offering an accessible alternative to direct cryptocurrency investments.
About NextGen Digital Platforms Inc.
NextGen Digital Platforms Inc. (CSE: NXT) is listed on the Canadian Securities Exchange. The Company currently operates e-commerce platform PCSections.com (“PCS”) and a hardware-as-a-service business supporting the artificial intelligence sector, called cloud AI hosting (“Cloud AI Hosting”). Both PCS and Cloud AI Hosting were developed in-house by NextGen. The Company also intends to democratize access to cryptocurrencies by providing investors with exposure to a diversified basket of digital assets through a regulated public vehicle. From time to time, the Company also intends to evaluate and acquire or develop other micro-technology platforms.
For More Information:
Alexander Tjiang, Interim Chief Executive Officer (416) 300-7398 https://nextgendigital.ca/ info@nextgendigital.ca
Caution Regarding Forward-Looking Information
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements herein, other than statements of historical fact, constitute forward-looking information. Forward-looking information is frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved.
Forward-looking information in this press release includes, but is not limited to, statements regarding the delivery and operation of workstations for Cloud AI Hosting, the Company's future cryptocurrency investing plans and strategies, the Company’s proposed strategic expansion and growth strategies, the Company’s ability to provide investors with exposure to digital assets, the potential success of its investments and its brand, the growth of Solana, XRP, DOGE and other digital assets and the mainstream adoption of various cryptocurrencies. Forward-looking information reflects the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates, including those pertaining to timely workstation delivery, cryptocurrency adoption, and the Company’s ability to execute its cryptocurrency business strategy, that, while considered reasonable by the Company, are inherently subject to significant business, technical, economic, and competitive uncertainties and contingencies, including the speculative nature of cryptocurrencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, without limitation, the Company's ability to execute on its business and investment plans; operational and technological risks relating to Cloud AI Hosting; the Company's ability to raise debt or equity through future financing activities; the Company's ability to increase its investments in cryptocurrency-based technologies; any adverse changes and developments regarding Solana, XRP, DOGE or the cryptocurrency ecosystem; the growth and development of decentralized finance and the digital asset sector; any new rules and regulations with respect to decentralized finance and digital assets; the inherent volatility in the prices of certain cryptocurrencies including Solana, XRP and DOGE; increasing competition in the crypto and blockchain industries; general economic, political and social uncertainties in Canada and the United States; currency exchange rates and interest rates; the limited financial and personnel resources of the Company; the Company's reliance on the expertise and judgment of senior management and the Company's ability to attract and retain key personnel; the speculative nature of cryptocurrencies in general; and the Company's ability to continue as a going concern.
There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update forward-looking statements herein except as required by applicable securities laws. Investors are cautioned against attributing undue certainty to forward-looking statements herein.
