The Pentanet Ltd (ASX: 5GG) share price has been a sensational performer on Tuesday.
In early trade, the cloud gaming provider's shares rocketed as much as 70% to 28 cents.
The Pentanet share price has pulled back a touch since then but remains up 42% at 23.5 cents today.
Why is this ASX share rocketing higher?
Investors have been scrambling to buy the company's shares after it announced a collaboration agreement with Optus Mobile.
According to the release, the initial 12-month agreement will see Pentanet deliver the NVIDIA GeForce NOW cloud gaming service to Optus customers.
Management believes that this agreement marks a significant milestone towards its goal of commercialising GeForce NOW with the introduction of Pentanet's first large-scale wholesale partner.
The two parties will work towards a program that enables enhanced experience for GeForce NOW users on Optus SubHub, with a specific focus on 5G and the GeForce NOW user management platform, CloudGG.
Solidifying its position
Pentanet's managing director, Stephen Cornish, was pleased with the news and believes it will solidify its position in the market. He said:
This is a big step towards solidifying our position in the gaming market, being the wholesale digital distribution channel for GeForce NOW in our territories. I'm looking forward to working closely with Optus and putting this game changing platform into the hands of new users.
Optus' managing director of marketing and revenue, Matt Williams, added:
Our mission is to break down the barriers to gaming and offer our customers the freedom to play anywhere and anytime. Cloud gaming is an ideal example for 5G in the home and on the go, given the need for high speed, low latency connectivity, and we are excited that we will be able to offer that to our customers very soon.