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NEW YORK - Mercurity Fintech Holding Inc. (NASDAQ:MFH), a digital fintech company with a market capitalization of $274 million, announced Tuesday it has completed a private placement financing that raised approximately $6 million in gross proceeds from institutional investors. The stock has shown strong momentum, gaining nearly 14% in the past week.
The Nasdaq-listed digital fintech group said it sold ordinary shares to the investors in a transaction conducted under Regulation S of the Securities Act of 1933. The securities have not been registered under the Securities Act and cannot be offered or sold in the United States without registration or an applicable exemption.
According to the company, the proceeds will be used to advance its Digital Asset Treasury strategy. The financing is expected to strengthen the company’s balance sheet and provide additional financial flexibility.
"We are pleased to have successfully completed this private placement with strong institutional investors who recognize the value proposition of our company," said Shi Qiu, CEO of MFH, in a press release statement.
Mercurity Fintech Holding describes itself as a fintech group powered by blockchain infrastructure that offers technology and financial services. The company operates through subsidiaries including Chaince Securities, LLC, focusing on digital asset management, financial advisory, and capital markets solutions.
The company did not disclose the specific terms of the offering or name the institutional investors who participated in the private placement. The company has demonstrated strong revenue growth of 126% over the last twelve months, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.
In other recent news, Mercurity Fintech Holding Inc. has made several significant announcements. The company entered into a $200 million Equity Line of Credit Agreement with Solana Ventures Ltd., aiming to enhance its digital asset treasury strategy within the Solana ecosystem. Additionally, Mercurity Fintech had plans to raise approximately $43.7 million through a registered direct offering involving ordinary shares and warrants. However, this offering was later canceled due to market conditions and challenges in meeting customary closing conditions.
Mercurity Fintech also announced a $10 million share repurchase program, which will be carried out over the next 12 months. The company emphasized that this move reflects confidence in its long-term strategy and commitment to shareholder value. The repurchases may be conducted through various means, including open market transactions and privately negotiated deals. These developments indicate Mercurity Fintech’s strategic focus on strengthening its financial position and expanding its presence in the blockchain space.
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