Nvidia’s results, Indian tariffs, French markets - what’s moving markets
NEW YORK - Mercurity Fintech Holding Inc. (NASDAQ:MFH), a $284 million market cap fintech company whose stock has surged 147% over the past year according to InvestingPro data, announced Monday the launch of a $500 million DeFi Basket Treasury aimed at expanding its on-chain strategy and diversifying its treasury holdings.
The blockchain-powered fintech group, which maintains a healthy balance sheet with more cash than debt and a current ratio of 2.59, plans to build a portfolio of established digital assets, with an initial focus on Solana (SOL). The company intends to systematically acquire SOL and operate validator nodes to generate staking rewards while supporting the network.
Beyond Solana, the treasury strategy includes diversification into other major cryptocurrencies including Ethereum (ETH), Ripple (XRP), Cardano (ADA), and BNB.
According to the company’s press release, funding for these acquisitions will come from a combination of existing cash reserves and future fundraising proceeds, subject to market conditions and regulatory compliance.
"This expanded treasury strategy, alongside our evolution toward blockchain-based business models, demonstrates our ambition to become a category leader in the digital asset industry," said Wilfred Daye, CSO of MFH.
The company stated that all digital asset acquisitions will operate within established risk management protocols and regulatory compliance frameworks. MFH plans to implement institutional-grade operational procedures to ensure asset security.
Mercurity Fintech Holding, which operates subsidiaries including Chaince Securities, LLC, positions itself as a bridge between traditional finance and digital innovation in areas including digital asset management and capital markets solutions. With revenue growth of 126% in the last twelve months and a beta of 8.29, InvestingPro analysis indicates the stock trades above its Fair Value, suggesting investors should carefully monitor its volatile nature. InvestingPro subscribers can access 10+ additional investment tips and comprehensive risk metrics for MFH.
In other recent news, Mercurity Fintech Holding Inc. announced plans to raise $800 million to establish a Bitcoin treasury reserve. This initiative aims to integrate Bitcoin assets into a digital reserve framework using blockchain-native custody and tokenized treasury management services. Additionally, Mercurity Fintech is expected to be included in the Russell 3000 and Russell 2000 Index, upgrading from the Russell Microcap Index, potentially increasing its exposure to institutional investors. The company also formed a strategic partnership with SBI Digital Markets to promote the global distribution of tokenized real-world assets through compliant investment solutions. This collaboration will connect institutional capital with tokenized assets, with Chaince Securities, a subsidiary of Mercurity Fintech, overseeing the distribution. Furthermore, Classover Holdings Inc. has engaged Chaince Securities as a strategic advisor for its new Solana-based treasury initiative, incorporating Solana tokens into its reserves. This partnership involves structuring a SOL-based treasury framework and exploring blockchain growth opportunities. These developments highlight Mercurity Fintech’s ongoing efforts to expand its presence in the digital asset sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.