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U.S. Global Investors Reports Results for the Third Quarter of 2025 Fiscal Year, Initiates Strategy to Increase Its Investment in the Bitcoin Ecosystem
GROWU.S. Global Investors(GROW) GlobeNewswire·2025-05-08 21:39

Core Viewpoint - U.S. Global Investors, Inc. reported a net loss for Q1 2025 amid challenging market conditions, while emphasizing strategic investments in gold and digital assets as potential growth areas [1][2][3]. Financial Performance - The company reported operating revenues of 2.1millionandanetlossof2.1 million and a net loss of 382,000, or 0.03pershare,forthequarterendedMarch31,2025[1][21].−Totalassetsundermanagement(AUM)decreasedtoapproximately0.03 per share, for the quarter ended March 31, 2025 [1][21]. - Total assets under management (AUM) decreased to approximately 1.2 billion from 1.5billionattheendof2024[1].InvestmentStrategies−ThecompanyisincreasingitsinvestmentinBitcoinandHIVEDigitalTechnologies,citingafavorableregulatoryenvironmentfordigitalassets[3].−Thecompany′sshareholderyieldasofMarch31,2025,was10.51.5 billion at the end of 2024 [1]. Investment Strategies - The company is increasing its investment in Bitcoin and HIVE Digital Technologies, citing a favorable regulatory environment for digital assets [3]. - The company's shareholder yield as of March 31, 2025, was 10.5%, significantly higher than the yields on five-year and ten-year Treasury bonds [2]. Market Trends - The U.S. Global Technology and Aerospace & Defense ETF (WAR) launched in December 2024, is gaining traction amid rising geopolitical risks and increased global defense spending, which reached a record 2.7 trillion in 2024 [4][5]. - Gold prices reached all-time highs in early 2025, with global demand hitting nearly 5,000 metric tons in 2024, primarily driven by central bank purchases [9][10]. Shareholder Initiatives - The company approved a monthly dividend of 0.0075persharestartinginApril2025,withscheduledpaymentdatesthroughJune2025[15].−Asharerepurchaseprogramallowsfortheannualpurchaseofupto0.0075 per share starting in April 2025, with scheduled payment dates through June 2025 [15]. - A share repurchase program allows for the annual purchase of up to 5 million of outstanding common shares, with 784,466 shares repurchased in the 12 months ending March 31, 2025, marking a 12% increase from the previous year [16]. Liquidity Position - As of March 31, 2025, the company reported approximately $26.3 million in cash and cash equivalents, providing substantial flexibility for future opportunities [19].