MiniMax Suffers 20% Price Drop After Token Unlock, Secures 16 Billion Yuan in Emergency Financing

MiniMax, one of China's leading AI large-model startups, has been hit by significant market turbulence following a token unlock event. Reports indicate that the associated price dropped by approximately 20%, triggering widespread concern among investors and industry observers.

The company is best known for its Hailuo AI product line, which includes video generation from text and large language model capabilities. MiniMax has previously raised substantial funding rounds and is considered one of the most valuable AI startups in China.

The sharp decline following the unlock event highlights the capital-market risks that AI startups face during periods of rapid growth. Unlock events typically release previously locked shares or tokens into circulation, and when market demand is insufficient to absorb the supply, prices can come under severe downward pressure.

In response to the crisis, MiniMax rapidly completed a new funding round worth 16 billion yuan (approximately $2.2 billion). The emergency financing is aimed at stabilizing the company's financial position, restoring market confidence, and providing sufficient capital for continued operations and growth.

The 16 billion yuan round ranks among the largest ever for a Chinese AI startup, signaling that while short-term market shocks are real, key investors retain confidence in MiniMax's core technology and long-term prospects. The funds will support model research and development, product iteration, and market expansion.

MiniMax now faces a dual challenge: absorbing the market impact of the unlock event while continuing to advance its technology in China's increasingly competitive large-model landscape. The company's ability to stabilize its market position will be closely watched.

Key developments to watch include whether MiniMax's price stabilizes following the financing announcement, whether the company adjusts its token or equity structure to prevent similar events, and how the new capital accelerates its product and commercialization roadmap.