SMX Stock Skyrocketed on a New Funding Deal. Should You Chase the 400% Rally Here?

Security Matters (SMX) shares are up 400% over the past five trading days after the company secured a substantial $111.5 million equity facility.

Investors are cheering the news as it addresses liquidity concerns that may have constrained growth initiatives in 2025.

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This funding validates Security Matters’ molecular identity platform as foundational infrastructure across multiple trillion-dollar industries as well.

At the time of writing, SMX stock is up more than 5,000% versus its year-to-date low set in November.

Why Have SMX Shares Skyrocketed in December?

The equity facility is largely constructive for Security Matters stock since it may help the company ramp up commercialization of its molecular identity platform.

It’s more than just a capital injection for SMX – it’s a validation that institutional backers see long-term potential in its technology that’s already transforming gold (GCZ25) and rare earth markets.

Minimizing funding concerns enables the Dublin-headquartered firm to be much more flexible to pursue partnerships, scale operations, and capture market share in trillion-dollar verticals.

What Makes Security Matters Stock a No-Go for 2026

While the funding announcement is positive, investors are still cautioned against chasing the rally in SMX stock as its valuation looks disconnected from the fundamentals at current levels.

Security Matters has already priced in years of flawless execution and topline growth, creating vulnerability to any operational setbacks or shifts in the overall market sentiment.

Plus, the company’s 20-day relative strength index (RSI) is approaching 80, indicating extremely overbought conditions, which often precede a selloff.

What’s also worth mentioning is that over the past four years, SMX shares have tanked nearly 60% in January on average. So, the historical data doesn’t warrant buying them here either.

All in all, Security Matters’ recent rally looks speculative at best.

SMX Stock Lacks Wall Street Coverage

Security Matters shares remain a super risky proposition for 2026 also because they don’t currently receive coverage from Wall Street analysts.

The lack of independent earnings forecasts, price targets, and institutional research means investors must rely on company press releases and speculative sentiment to evaluate SMX shares’ prospects.

This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com