U.S. Global Investors (NASDAQ:GROW) told shareholders it plans to expand its exposure to digital assets, ramp up its gold strategy, and build momentum behind its defense-focused ETF in the coming quarters.
The firm’s GO GOLD and Precious Metal Miners ETF (NYSE: GOAU) is one of several vehicles for investors to tap into demand for real assets.
At the same time, the company continues to build its position in Bitcoin and digital infrastructure through regular Bitcoin purchases and increased investment in HIVE Digital Technologies (NASDAQ: HIVE), a cryptocurrency mining company.
CEO Frank Holmes said U.S. Global Investors is increasing its Bitcoin exposure through two strategies.
“Each month, the company plans to gain exposure to Bitcoin; separately, we plan to accumulate common shares in HIVE as our HIVE notes mature, as we continue to believe HIVE remains significantly undervalued.”
Meanwhile, Holmes said the company is increasingly bullish on gold, forecasting prices could reach as high as $6,000 an ounce over the next few years. He cited central bank buying, heightened geopolitical risk, and the upcoming Basel III changes that elevate gold to Tier 1 asset status in July.
“We believe this validation could bode well for our gold equity funds, including the U.S. Global GO GOLD and Precious Metal Miners ETF, which is designed to capture the upside potential of high-quality gold producers and royalty companies,” Holmes said.
“We expect the combination of sustained central bank buying and heightened geopolitical risks to continue supporting gold prices—and by extension, the performance of gold mining equities in the months ahead.”
Meanwhile, the firm’s U.S. Global Jets ETF (NYSE: JETS) and its newly renamed U.S. Global Investors Travel UCITS ETF (TRIP) are being actively repositioned to capture what Holmes called a “secular growth trend” in travel, driven by lifestyle shifts like remote work and the rise of experience-based consumer spending.
In the defense sector, the U.S. Global Sea to Sky Warfare ETF (NYSE: WAR) is gaining investor attention as global defense budgets hit new records.
U.S. Global Investors ended the quarter with $26.3 million in cash and equivalents, providing what Holmes called a “solid base” to pursue strategic growth across its ETF lineup.
The firm reported a net loss of $382,000, or $0.03 per share, for the quarter ended March 31, driven by a decline in operating revenue to $2.1 million from $2.6 million a year ago.
Total assets under management were $1.2 billion at quarter-end, compared with $1.5 billion at the end of 2024.