Gaxos.AI Inc. ( GXAI ) shares are moving higher Thursday after the company’s board approved the purchase of Bitcoin (CRYPTO: BTC) as a treasury reserve asset.

The Details: Gaxos.AI ( GXAI ), an AI applications company, said its board of directors approved the purchase of up to $1 million in Bitcoin.

“As demand for Bitcoin grows and so does its acceptance as a major and primary asset class, we believe that Bitcoin will serve as a strong treasury reserve asset,” said Vadim Mats, CEO of Gaxos.

“With recent approval of Bitcoin ETFs and growing support from institutional investors, it is a great addition to our treasury strategy. Its limited supply and inflation-resistant characteristics provide a functional store of value.” 

The strategic move from Gaxos comes after Bitcoin soared to new all-time highs earlier this week. Bitcoin was trading around $89,000 at the time of writing, per data from Benzinga Pro.

Is GXAI A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Gaxos.AI ( GXAI )‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Gaxos.AI ( GXAI ) does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Gaxos.AI ( GXAI ) will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

See Also: What’s Going On With Bitcoin Mining Stocks MARA Holdings, Riot Platforms And CleanSpark?

GXAI Price Action: At the time of publication, Gaxos.AI ( GXAI ) shares were up 11.1% at 1.61, according to data from Benzinga Pro.

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