In the digital finance sector, Mercurity Fintech Holding Inc. (Nasdaq: MFH) has announced plans to raise up to $800 million to establish a long-term Bitcoin $104,806 reserve. This initiative is viewed as part of the company’s strategy to integrate digital assets into its financial operations.
Transition to a Bitcoin Reserve and Company Strategy
According to a recent press release by Mercurity Fintech, the company plans to convert some of its assets into Bitcoin. This conversion process will utilize blockchain-based custody solutions, staking applications, and tokenized treasury instruments. The goal is to enhance the returns on existing assets and to extend their lifespan.
Mercurity’s CEO, Shi Qiu, emphasized that this move is grounded in the belief that Bitcoin will play a significant role in the future of financial infrastructure.
“We are building this Bitcoin reserve with that belief and positioning our company as a leading player in the digital finance ecosystem.”
If the entire funds are converted into Bitcoin at current market prices, Mercurity could acquire approximately 7,433 BTC. This amount could position the company among the top 11 institutions holding the most Bitcoin, surpassing companies like GameStop.
Global Companies and the Turn to Bitcoin
The announcement coincides with a period of increasing interest in Bitcoin among global companies. Recent data shows that 223 companies and institutions hold Bitcoin in their portfolios, a number which has recently risen from 124. Publicly traded companies are estimated to collectively hold approximately 819,000 BTC, representing about 3.9% of the total supply.
Mercurity’s plans align with its process of being included in major index lists. By 2025, Mercurity aims to enter the FTSE Russell 2000 and Russell 3000 indices, having previously been part of the Microcap index. Inclusion in these indices is believed to increase visibility among institutional investors and funds.
The company stated that the Bitcoin reserve will be managed with institutional-level custody, on-chain liquidity protocols, and staking-supported instruments. The intention is not only to hold Bitcoin but also to create a structure that yields returns and enhances efficiency.
With the proposed system, Mercurity plans to maintain long-term exposure to Bitcoin while maximizing the benefits of the reserve. This approach aims to strengthen the company’s role in the digital financial infrastructure.
There is an observed increase in the number of companies developing Bitcoin-centric treasury management strategies, influenced by Mercurity’s initiative. This move indicates progress in the institutional adoption of Bitcoin.
Shi Qiu: “Our transition from the Russell Microcap to the Russell 2000 index demonstrates the value we create in blockchain finance being appreciated by investors. The Bitcoin reserve initiative is a natural step in this evolution.”
The Bitcoin reserve program initiated by Mercurity Fintech highlights the role of digital assets in its financial strategy. It serves as an example of the growing institutional acceptance of Bitcoin and efforts to diversify corporate assets. The management of the fund with professional asset custody solutions and next-generation financial tools is expected to mitigate risks while enhancing efficiency. These developments prompt investors and financial markets to closely watch new models for utilizing digital assets alongside traditional reserve tools.