Mercurity Fintech Holding Inc. - MFH
Quick Take
Shares of MFH took something of an unexplained jump back on November 11th, rising from $1.29 to $2.34 over the course of the day on huge volume and on no company news. A simple browse through both the company’s own press releases or the SEC’s filings shows nothing was filed or released on that date. Shares today remain much higher, so I thought it might be worthwhile to take a bit of a peek at what these folks purport to do and if that move was really deserved.
Mercurity Fintech Holding Inc. - (MFH - $6.83)
Shares Outstanding: ~64M
Warrants Outstanding: 100M+
Borrowable? Supposedly so, though with a negative rebate
Let’s first try to figure out what caused the stock to suddenly move?
The company throws around words like “blockchain” and “crypto” and “bitcoin” and “filecoin” in their filings, so perhaps there was some sort of a delayed “Trump effect” going back to the prior week’s election results. While bitcoin started heading higher immediately after the election, it took a huge jump on November 11th, so it may just be the result of day-traders hunting for anything crypto-related that they would be able to push higher, and found one in shares of MFH. I personally find this the most likely scenario, though a recent filing clearly states:
“The Company currently does not mine Bitcoin and going forward, it has no plans to resume Bitcoin mining.”
A second option would be that news of the company making a virtual presentation later that week at the “4th annual NASDAQ Small-Cap Forum” leaked out and caused some excitement for investors. Until that day, shares of MFH basically traded by appointment, so this seems rather unlikely.
Another option would be the company’s release later that week that they had gained control of J.V. Delaney & Associates, a FINRA licensed brokerage outfit doing business in New York and California. The company’s FINRA page under brokercheck shows a pretty minimal operation, and their website shows even less. Another thing going against this theory is that they had announced that deal way back in 2023.
“On May 3, 2023, Chaince Securities entered into a Purchase and Sale Agreement for the acquisition of all assets and liabilities of J.V. Delaney & Associates, an investment advisory firm and FINRA licensed broker dealer.”
So let’s explore what these folks actually do…