Mega Matrix Inc.

MPU (Mega Matrix Inc.) is a diversified company whose core and emerging businesses together form its unique business model.

1. Short Drama Streaming Platform Business (FlexTV) Operating the global short drama streaming platform FlexTV, focusing on the production and distribution of short drama content. These short dramas include various languages such as English, Japanese, Thai, and are translated into multiple languages, targeting users in Europe, America, and Southeast Asia. The content sources of FlexTV mainly include self-produced short dramas, as well as licensed third-party content that is translated and distributed. The company is also actively exploring collaboration with Wardour Studios to launch AI-generated short dramas, innovating content production methods.

2. Cryptocurrency-related Business

The company has resumed its Ethereum staking business and plans to conduct independent staking through institutional providers such as Coinbase. This is an important component of the company's Web3 strategy. The company's board has approved the purchase of Bitcoin and/or Ethereum as reserve assets, indicating that the company views cryptocurrency as part of its asset allocation. Early business involves allowing players to earn income through a "Play-to-earn" model in the metaverse "alSpace."

The profit model of MPU mainly comes from user payments for its short drama business and investment returns from its cryptocurrency business.

1. Short drama streaming platform profitability User Payment and Subscription: FlexTV's main source of income is user payments and subscription models, which account for more than 90% of total revenue. Users watch short drama content by purchasing individual episodes or subscribing to services. Advertising revenue: Advertising revenue accounts for a small proportion of FlexTV's profits, less than 10%.

2. Cryptocurrency-related Profits

Ethereum Staking Rewards: Through Ethereum staking services, the company can earn staking rewards. These rewards can be reinvested in Ethereum or used for the company's daily operations and general business purposes. Cryptocurrency Asset Appreciation: By using Bitcoin and/or Ethereum as reserve assets, the company can achieve asset appreciation gains through the rise in cryptocurrency prices.

The profit model of MPU Company is not singular; it is composed of both short drama business and cryptocurrency business. This diversified profit structure plays an important role and significance in the company's development.

1. Supporting Core Business Development

The user payment and subscription revenue from the short drama business is the company's primary source of cash flow. This revenue directly supports the content production, copyright procurement, technology research and development, and marketing of the FlexTV platform. Stable user payment income provides the company with continuous operating funds in the highly competitive streaming market, enabling it to continuously launch new short drama content, attract and retain users, and create a virtuous cycle. Although advertising revenue accounts for a small proportion, it can serve as a supplement to further enhance FlexTV's overall revenue. Especially after the user base expands, the value of advertising will become more prominent.

2. Expanding New Growth Points and Risk Diversification

The cryptocurrency business brings new growth potential to the company. The Ethereum staking business can earn stable staking rewards by participating in the verification process of the blockchain network, which is a relatively low-risk source of income. As the Ethereum ecosystem continues to develop, staking rewards are expected to grow steadily. Using Bitcoin and Ethereum as reserve assets allows the company to benefit from the overall growth of the cryptocurrency market. This is a strategic asset allocation aimed at enhancing the company's overall value through the appreciation of digital assets. Although the cryptocurrency market is highly volatile, for a company that actively embraces a Web3 strategy, this allocation also reflects its confidence and positioning in the future digital economy. Diversified profit models help to spread risk. When a certain business area faces challenges (such as intensified competition in the short drama market or fluctuations in the cryptocurrency market), the profits from other businesses can serve as a buffer, enhancing the company's resilience to risks and financial stability.

3. Enhance Company Valuation and Market Appeal

Innovative business models, especially the combination of traditional entertainment and Web3 technology, give MPU a unique appeal in the capital market. This forward-looking layout helps attract more investors who are interested in emerging technologies and the digital economy. A clear profit path, whether through user payments or cryptocurrency earnings, provides investors with a clear basis for value assessment. Continuous revenue growth and diversified profit sources help enhance the company's market valuation. The implementation of Web3 strategies, such as Ethereum staking, has not only brought direct economic benefits but also enhanced the company's professional image and influence in the blockchain and digital asset fields, laying the foundation for its future Web3-related business development.

4. Promoting Technological Innovation and Industrial Upgrading

The deepening of cryptocurrency business has prompted the company to invest in and explore blockchain technology, digital asset management, and Web3 applications. This not only enhances the company's own technological capabilities but may also drive innovation and development in related industries. The attempt to generate short dramas using AI indicates that the company is actively embracing new technologies in content production, which helps improve content production efficiency, reduce costs, and potentially create entirely new forms of content and user experiences, thereby further consolidating its competitive advantage in the short drama market.

The cryptocurrency business of MPU Company mainly revolves around Bitcoin (BTC) and Ethereum (ETH), and its impact on these currencies is primarily reflected in the following aspects:

1. Impact on Bitcoin (BTC)

Impact Method: The board of directors of MPU Company has approved the purchase of Bitcoin as a reserve asset for the company. This means the company will buy Bitcoin from the market and hold it as a long-term asset. This action directly increases the market demand for Bitcoin, which may create positive buying pressure on its price. Impact Level: Given the scale of MPU Company and the amount of Bitcoin it has announced to purchase (the specific amount has not been disclosed, but typically company-level purchases are of a certain scale), its buying behavior may have a limited impact on the entire Bitcoin market. However, as part of the entry of institutional investors, it helps to enhance the recognition of Bitcoin as a legitimate reserve asset and may encourage other companies of similar scale to follow suit.

2. Impact on Ethereum ( ETH )

Influence method: Purchase as a reserve asset: Similar to Bitcoin, MPU has also approved the purchase of Ethereum as a reserve asset, which will directly increase market demand for Ethereum and create buying pressure. Ethereum Staking: MPU Company has announced the resumption of Ethereum staking services and has purchased 40 ETH for staking. Staking is the act of locking Ethereum in the blockchain network to support network operations and earn rewards. This reduces the amount of Ethereum available in the market, thereby affecting its supply to some extent. Promotion of Web3 Strategy: MPU views Ethereum staking as part of its broader Web3 strategy. This means the company will actively participate in the Ethereum ecosystem, potentially developing or integrating more Ethereum-based applications and services in the future, thereby increasing the activity and use cases of the Ethereum network, which will have a positive impact on Ethereum's value in the long run. Impact Level: The actions of buying and staking Ethereum will affect the price and liquidity of Ethereum. Although a single stake of 40 ETH is relatively small for the entire Ethereum market, the active participation of a publicly listed company in Ethereum staking conveys confidence in the Ethereum ecosystem, helping to attract more institutions and individuals to participate in staking, thereby positively impacting the long-term value and stability of Ethereum.