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NEW YORK - Mercurity Fintech Holding Inc. (NASDAQ:MFH), a $386 million market cap fintech company whose stock has surged over 347% in the past year according to InvestingPro data, announced Monday that its wholly owned subsidiary Chaince Securities has entered into a non-binding Memorandum of Understanding with Singapore-based OGBC Group.
The 90-day agreement, which can be extended by mutual agreement, outlines a two-part collaboration focusing on digital asset integration with traditional finance. The parties plan to jointly advise on the creation of a Digital Asset Treasury fund targeting blockchain projects in Asia and explore U.S. public holding companies that could adopt this strategy. InvestingPro analysis shows MFH maintains a healthy current ratio of 2.59, indicating strong short-term financial stability to support such initiatives.
Under the arrangement, Chaince Securities will provide investment banking services, including fundraising and capital markets advisory, for companies adopting the Digital Asset Treasury model.
"Collaborating with OGBC Group allows us to combine blockchain innovation with our licensed broker-dealer capabilities," said Wilfred Daye, Chief Executive Officer of Chaince Securities and Chief Strategy Officer of Mercurity Fintech, in the press release statement.
Mercurity Fintech, a Russell 2000 Index member, describes itself as a blockchain-powered fintech group. Its subsidiary Chaince Securities is a FINRA-registered broker-dealer founded in 1982 and headquartered in New York City.
OGBC Group operates as an innovation firm investing in companies across Web3, AI, and consumer technology ecosystems, with a focus on the Asia-Pacific region.
The agreement represents Mercurity Fintech’s continued efforts to position itself between digital assets and traditional financial markets. While the company has achieved impressive revenue growth of 126% in the last twelve months, InvestingPro analysis indicates the stock is currently trading above its Fair Value. InvestingPro subscribers have access to 12 additional key insights about MFH’s financial health and market position.
In other recent news, Mercurity Fintech Holding Inc. announced it has completed a private placement financing, raising approximately $6 million in gross proceeds from institutional investors. This transaction was conducted under Regulation S of the Securities Act of 1933. Additionally, the company decided to cancel a previously announced registered direct offering of ordinary shares and warrants due to market conditions and unforeseen challenges. Mercurity Fintech has also launched a share repurchase program of up to $10 million over the next 12 months, indicating confidence in its long-term strategy. The company has seen an increase in institutional investor presence following its inclusion in the Russell 2000 index, with major asset managers and global banks establishing or increasing positions in the stock. Furthermore, Peter Nobel, a member of the Nobel family, has joined the board as an Independent Director, bringing his expertise in sustainability and industrial innovation. These developments reflect Mercurity Fintech’s ongoing efforts to enhance its financial standing and governance.
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