B2Digital stocks surge amidst MMA news
The pay-per-view deal with the group raises hopes for investors.

B2Digital Inc. (OTCMKTS: BTDG) is a emerging name in the fitness, martial arts, and live sports media markets. Stocks have heated up lately as the company sees strong growth in its MMA pay-per-view numbers and continues to implement a roll-up strategy in the fitness equipment market. The key to appreciate about this name is the synergy between these elements. This synergy is a driving force that could present an opportunity for investors because it implies the potential for the company to unleash significant growth in the future if these elements begin to reinforce each other in a growth feedback loop. Indeed, the whole here could be much greater than the mere sum of its parts. Background: BTDG has built a solid reputation for being the "farm league" for professional mixed martial arts matches. BTDG hosts live events across the South and Midwest of the United States with top amateur and professional MMA bouts, where participants essentially vie for the chance to advance to the big leagues and gain some UFC presence. The company has been in this space for years, and its recent events are starting to attract larger audiences as it expands into OTT programming with new Amazon Fire and Apple TV apps, as well as a greater marketing and sales presence for the PPV live stream access. But all of this is effectively a branding platform that really pays off on the gym side. It's a bit like Xerox, a company that made a fortune with its inks business despite being known for selling high quality printers - the printer business was never the money maker. The printers only went at cost to create a market for the high-margin ink business. At BTDG, the eye-catching live PPV events are highly visible brand building exercises so that the company can earn stable, high-margin membership fees in its expanding chain of fitness and training facilities. At this point, the company is forecast to be well on its way to achieving three-digit percentage growth in sales. And profits also benefit from this process, which should soon become noticeable. The acquisitions that are being made now are at affordable prices (due to the pandemic) and the branding move results in higher margins and an expansion of memberships in each location, which gives a very positive ROI profile. To make this point clear, B2Digital Inc. (OTCMKTS: BTDG) is doing bargain deals in the fitness facility by acquiring gym after gym and renaming those facilities as hubs of its burgeoning, MMA-focused B2 Training Facilities Network - one Chain of fitness studios with their own branding that serve as feeder systems for its MMA business. But the gyms themselves are the bread-and-butter business for shareholders. This strong model will also be expanded further. This week the company announced another acquisition: it acquired all of the assets of Hillcrest Fitness, a fitness facility in Tuscaloosa, Alabama. According to the press release, this will be the fourth One More Gym location owned and operated by B2Digital as a health club, fitness facility, and official B2 training facility associated with the company's B2 Fighting Series and B2 Grappling Series martial arts brands. The company will expand the new location to include jiu-jitsu, boxing and MMA training areas in order to integrate the facility into its B2 training facility network. "This is a perfect location for the expansion of our One More Gym brand as we have had and will continue to have B2 Fighting Series fights in the area and our brand is already very well established in this region, reflecting business in our new fitness facility and our MMA training center immediately, "commented Greg P. Bell, Chairman & CEO of B2Digital. "We continue to anticipate 1-2 gym acquisitions per quarter, which will constitute a significant part of our long-term revenue expectations. As the B2 Fighting Series brand continues to gain traction as an emerging brand in MMA, our One More Gym business will become benefit from its unique association with the B2 Training Facilities Network. "
