Why QMMM Holdings Stock Skyrocketed This Week (but Is Already Dropping Back, Too)

Key Points

• QMMM Holdings stock surged as much as 3,816% this week after announcing a pivot into cryptocurrency investments and blockchain services.

• Plans of buying $100 million Bitcoin, Ethereum, and Solana could be unrealistic, since QMMM recently almost quadrupled its share count to raise just $8 million.

• This situation mirrors the 2016 crypto bubble, when struggling companies pivoted to blockchain to boost their stock prices -- for a while.

• 10 stocks we like better than Qmmm ›

As of 11:11 a.m. on Sept. 11, shares of QMMM Holdings (NASDAQ: QMMM) have gained 1,070% since Friday's closing bell, according to data from S&P Global Market Intelligence. That's not a typo; earlier this morning, the stock was up by an even more absurd 1,377%. And the real pop was earlier this week, maxing out at a staggering 3,816% gain from Friday's closing to Tuesday's peak.

The digital media company, getting its name from the initials of its flagship subsidiaries Quantum Matrix and ManyMany Creations, is taking a sharp turn right now.

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QMMM is betting the farm on Bitcoin and friends

In addition to its online marketing services and digital avatar apparel, the company is adding cryptocurrencies to its balance sheet and crypto-related services to its product portfolio. That announcement was the catalyst for this week's big price move.

The Hong Kong-based company is taking on debt and selling shares to invest a combined total of $100 million in Bitcoin, Ethereum, and Solana. It is also building a blockchain-based platform connecting consumers to digital media in new ways.

Didn't I see this movie before?

Who hit the rewind button? It's like 2016 all over again. Those were the days when any company in deep financial trouble could save the day by switching to a cryptocurrency-based business model.

QMMM Holdings was staving off delisting notices due to low stock prices before this week's sudden jump. Share prices fell to a bottom price of $0.54 in November 2024. It raised $8 million of extra cash in June 2025, with a secondary stock offering that nearly quadrupled QMMM's share count. Extreme dilution is never fun for shareholders.

Image source: Getty Images.

Many of the companies that caught a second wind from cryptocurrencies in 2016 quickly fell back to their old, unprofitable ways. I can't say for sure that QMMM will follow the same path, but it's a fairly likely long-term outcome. The company was worth $141 million a month ago and (checks notes) $4.9 billion today. That seems a bit high.

I highly recommend staying away from this overheated crypto stock for now. It's down 20% today and should slide a lot lower over time. QMMM's business is a "show-me" story at this point, and I haven't seen a substantial business plan yet.

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Anders Bylund has positions in Bitcoin, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.