Founded in 2019, Signing Day Sports (SGN) is a Scottsdale, Arizona-based technology company that specializes in operating a digital platform designed to assist high school athletes in the college recruitment process. Its app enables student athletes to create comprehensive recruitment profiles, including video-verified athletic metrics, academic records, and skill footage, facilitating evaluations by college coaches and recruiters.

But just like Michael Saylor-led MicroStrategy (MSTR) before, Signing Day Sports is shifting its focus to become a Bitcoin (BTCUSD) miner. As the world’s most valuable cryptocurrency crossed its all-time high recently, Signing Day Sports signed a definitive agreement to acquire One Blockchain, an operating affiliate of BlockchAIn Digital Infrastructure, which specialises in crypto mining, artificial intelligence (AI), and high-performance computing (HPC) data hosting services.

This led to a 242% rise in the company’s stock in the past week, with its market cap now at $9 million.

Signing Day Sports will exchange no monetary consideration to either One Blockchain or its equity holders as part of the deal. Instead, the transaction will be carried out using a holding company framework, through which both Signing Day Sports and One Blockchain will be reorganized as subsidiaries operating under the umbrella of BlockchAIn Digital Infrastructure.

Mixed Signals from Financials

Signing Day Sports’ financials are nothing to write home about. In the most recent quarter, the company reported a drop in revenues to $148,358 million from $234,627 in the year-ago period. However, net losses narrowed to $842,994 compared to $2.5 million in the prior year, which is a positive development.

Net cash used in operating activities remained a concern, coming in at $1.8 million. However, the company almost doubled its cash balance to close the March quarter with a cash balance of $487,384. This was higher than the figure of $259,765 in the corresponding period a year ago.

Thus, while the company is on the path to profitability and is improving its liquidity position, its declining revenues revenues are worrying.

Entering a Growing Market (But Some Concerns Remain)

The Bitcoin mining market, on which Signing Day Sports is putting its bet on, is expected to be valued at about $4.43 billion by 2032. In the United States, the cryptocurrency market generated $1.35 billion in revenue in 2024, with projections to grow to $2.72 billion by 2030, marking a CAGR of 12.7% from 2025 to 2030.

Signing Day Sports is positioning itself to become a notable player in the expanding Bitcoin mining arena through its recent acquisition of One Blockchain. BlockchAIn Digital Infrastructure, the parent entity of One Blockchain, reported revenues of roughly $26.8 million and net earnings of $5.7 million for the year 2024. It currently operates a 40 MW crypto mining hosting facility in South Carolina and is in the process of developing a 150 MW site in Texas, expected to be ready by late 2026. This new development plans to dedicate 100 MW to in-house cryptocurrency mining and 50 MW to AI and high-performance computing data hosting, thus establishing a scalable and diverse revenue platform.

The acquisition also provides SGN entry into the fast-growing sectors of AI and HPC data hosting, markets that are witnessing strong demand for enhanced data processing power. By leveraging BlockchAIn Digital Infrastructure’s existing capabilities and infrastructure, SGN can expand its revenue base beyond its traditional sports recruitment services.

However, the deal may raise concerns among SGN shareholders as they will hold only about 8.5% of the combined company’s equity, with the remaining 91.5% belonging to One Blockchain’s securityholders. Moreover, Signing Day Sports lacks extensive experience in managing digital infrastructure businesses, which may present challenges in operating and scaling capital-intensive ventures such as crypto mining and AI hosting. The ultimate outcome will depend largely on SGN’s effectiveness in integrating its business with BlockchAIn Digital Infrastructure’s operations and workforce.