Mercurity Fintech Holding: Regulatory Headwinds Threaten On-Chain Hopes

Summary MFH has now pivoted from Filecoin mining to a “DeFi Basket” focused on Solana and staking for yield. However, new Nasdaq oversight of token-funded treasuries could slow MFH’s on-chain treasury ￰0￱ has also pushed for AI/HPC operations via Aifinity Base that targets liquid-cooling hardware. Nevertheless, in 2024, they generated only $1.0 million in revenues, with business consulting contributing about 44.5% of that figure. Ultimately, I’m bearish on MFH, especially since the recent regulatory headwinds could derail their Solana ambitions funded with an equity credit ￰1￱ Fintech Holding Inc.

( MFH ) is a diversified fintech in blockchain, artificial intelligence ((AI)), high-performance computing HPC, and other regulated financial ￰2￱ mostly operates through a joint venture called Aifinity Base with ZJK Industrial to commercialize cooling solutions for AI and HPC systems. They’re also working on a “DeFi Basket” treasury focused on institutional-grade digital assets, especially Solana (SOL-USD). However, the new NASDAQ regulations on token-heavy treasuries affected MFH’s DeFi strategy, which could become a near-term headwind. However, even though it sounds promising on paper, the reality is much less ￰3￱ remains an expensive stock with a future that largely depends on crypto appreciating.

Thus, I feel it’s not worth adding to an investment ￰4￱ Basket Promises Mercurity Fintech Holding ￰5￱ a fintech that operates through several subsidiaries to deliver financial solutions, blockchain services, and ￰6￱ were founded back in 2011 as JMU Limited, with an e-commerce platform business model. However, by 2020, it was rebranded as MFH to focus on the crypto ecosystem. Eventually, in 2022 and 2023, MFH raised new funds to pivot further into next-gen tech with expanded partnerships in fintech. They’re currently headquartered in New York City and are doubling down on their crypto strategy vision.) blockchain & digital asset solutions, 2) AI and HPC infrastructure, and 3) financial ￰7￱ of all, MFH’s blockchain and digital asset solutions segment offers distributed computing to support blockchain operations and crypto ￰8￱ company uses its computing resources (or partnerships) for mining, which involves solving cryptographic puzzles to earn rewards in ￰9￱ rewards are often tokens like Bitcoin (BTC-USD) or Ethereum (ETH-USD).

Additionally, MFH builds or manages the backbone systems for blockchain ￰10￱ typically includes servers, validation nodes, APIs, and development frameworks that blockchains often ￰11￱ top of that, MFH manages digital assets (essentially cryptocurrencies) and other blockchain-based ￰12￱ is basically offering trading services, payments, safekeeping, and various advisory services related to cryptocurrencies.). And interestingly, I calculate their “business consultation” services are actually around 44.5% of their total ￰13￱ 2024, total revenues were $1.0 million, and $448.9 thousand came from consulting, which, based on their 20-F filing (see above), appears to have little to do with actual AI or crypto ￰14￱ Basket And Regulatory Oversight Having said that, in July 2025, MFH announced the launch of a $500 million “ DeFi Basket ” ￰15￱ idea here is to build a portfolio of high-utility DeFi tokens and projects with institutional adoption and proven use ￰16￱ other words, this sounds like they want to accumulate “blue chip” crypto tokens such as ETH, Solana ((SOL)), or stablecoins (USDC, USDT, DAI).

Yet, they historically had a major focus on Filecoin (FIL-USD) mining in 2022 and ￰17￱ the time, the bet was on decentralized storage, which FIL is supposedly targeting as well, and MFH spent its resources mining this ￰18￱ fact, on December 15, 2022, they spent around $6.0 million on “ Web3 decentralized storage ” infrastructure to support their FIL mining ￰19￱ unfortunately, FIL plunged during that period (see image below), which seems to broadly correlate with MFH’s stock decline at the time.). In any event, they’ve more recently moved towards integrating their business more closely with ￰20￱ says they plan to accumulate SOL tokens as a core holding and run validator nodes on SOL’s network.

Essentially, it sounds similar to what they intended to do on the Filecoin network back in 2022 and ￰21￱ instead, this time they’ll become an active infrastructure participant in Solana, which includes staking tokens and earning ￰22￱ will give them passive yield on top of any appreciation in the token price, so it’s a nice added bonus with this blockchain. However, after their “DeFi Basket” treasury launch, MFH was affected by a new NASDAQ regulation that could constrain them from executing this ￰23￱ September 4, 2025, it was reported that NASDAQ will increase oversight on companies that issue new stock and use the proceeds to buy crypto ￰24￱ this regulation, NASDAQ will now require shareholder approval before such stock-for-token purchases to protect investors from dilution ￰25￱ other words, this is a direct regulatory hit to companies where buying and holding crypto is the main business ￰26￱ for MFH, this rule increases friction in executing their on-chain treasury ￰27￱ And Risk Analysis Now, from a valuation perspective, MFH currently trades at a $386.1 million market ￰28￱ latest financials we have are from their annual 20-F report with a cut date of December 2024.

However, that report shows their balance sheet had only $23.9 million in cash and equivalents, plus $1.0 million in short-term ￰29￱ amounts to roughly $24.9 million in available liquidity against a $7.5 million convertible ￰30￱ February 2025, they disclosed they repaid $4.0 million on that note, and there’s only $3.5 million outstanding in convertible notes.) to $20.9 million. Also, their book value was $24.1 million by year-end 2024, indicating a P/B of 16.0, which is inherently ￰31￱ comparison, their sector’s median P/B is much lower at just 3.6. Similarly, their total 2024 revenues were only approximately $1.0 million, which results in an extremely pricey P/S of 381.1 as ￰32￱ as far as I can tell, their growth prospects now largely hinge on cryptocurrencies appreciating substantially to justify these premium valuation ￰33￱ I believe MFH probably doesn’t justify a premium valuation, given that it has a highly complex corporate structure in the Cayman Islands with negligible revenues.