Virtual Mind (01520) recently announced a subscription agreement with GEM, a renowned Wall Street alternative investment institution. Under the agreement, GEM will subscribe for company shares with up to HK$225 million. Additionally, GEM obtained 31 million warrants at an exercise price of HK$1.97 per share, representing nearly a 10% premium to Virtual Mind's recent stock price. The proceeds will primarily support the expansion of AI and Web3 businesses. This transaction not only provides crucial funding for Virtual Mind's strategic transformation but has also sparked widespread market attention regarding its Web3 positioning.

According to public information, GEM is a prominent global investment institution focusing on emerging technology sectors. The firm has previously achieved multiple successful investments in artificial intelligence, blockchain, and other emerging technology fields, including Turkish mobile gaming giant Manc Games, global automotive manufacturer Hanhwa, smart home and enterprise service provider Huapu Group, and AI blockchain project Vitreus. GEM's premium investment in Virtual Mind demonstrates both capital market confidence in the company and recognition of its strategic direction.

Behind this investment, it's worth noting that the Web3.0 and RWA (Real World Assets) sectors that Virtual Mind has positioned itself in are experiencing explosive growth. According to the "2025 Global Stablecoin Industry Development Report" jointly released by PANews and Mobile Payment Network, as of July 2025, the total market capitalization of global stablecoins exceeded $250 billion, showing significant growth from the beginning of the year. Meanwhile, on-chain annual transfer volume reached $36.3 trillion, surpassing the combined annual transaction volume of Visa and Mastercard, highlighting its potential to gradually become a new global payment infrastructure.

Data shows that the RWA market size has surged from $5 billion in 2022 to $25.51 billion in 2025, representing 410% growth and becoming the fastest-growing crypto sector after stablecoins. According to an Outlier Ventures report, Web3.0 startups raised $9.6 billion in the second quarter of 2025, marking the second-highest quarterly funding on record.

From a policy perspective, Hong Kong's Stablecoin Ordinance officially came into effect on August 1, marking the implementation of the world's first comprehensive regulatory framework specifically for fiat-pegged stablecoins. The ordinance provides clear guidance for compliant stablecoin issuance and creates significant development opportunities for related enterprises.

Against this backdrop, Virtual Mind has established a forward-looking business layout in the Web3.0 sector through a series of strategic partnerships and equity investments. The company has previously invested in "AI + blockchain" technology enterprise Shineco Capital, leveraging its rich IP brand operation experience and forward-looking business layout to form complementary advantages with Shineco Capital's FlexDeal platform, accelerating the implementation of related business applications in new technological environments.

Specifically, the company signed a cooperation framework agreement with Shineco Capital to jointly promote the Wang Fu Center Web3 brand promotion and RWA issuance project. The company further acquired a 10% stake in Shineco Capital, planning to leverage the FlexDeal platform to expand IP applications, optimize operations, and comprehensively accelerate business development.

Furthermore, Virtual Mind continues to expand its business boundaries, announcing in July the establishment of a joint venture with West Football Chain Technology to jointly develop Web3.0-mode sports IP new consumption operation business. West Football Chain Technology's LALIGA CLUB, as the world's first Web3.0-based sports IP open commercial platform, is attempting to build a community-centered sports consumption ecosystem, further expanding Virtual Mind's imagination space in the "Web3 + IP consumption" sector.

GEM's investment, beyond providing direct financial support, is expected to bring international business resources and technology cooperation opportunities to Virtual Mind, strengthening its competitive barriers amid technological transformation. Receiving endorsement from professional investment institutions will also help the market reassess Virtual Mind's asset value and growth momentum in the Web3 sector.

Although the integration of Web3 and AI remains in its early stages, with regulations and business models not yet fully mature, Virtual Mind has secured a favorable position in this cutting-edge sector through clear strategic positioning, technology partnerships, and capital support. If the company can achieve substantial progress in stablecoin-related businesses going forward, it has the potential for value revaluation, becoming a scarce "Web3 + AI" convergence concept stock in the Hong Kong stock market.