Recent US stock market” “Small ticket stocks are shrinking” is quietly brewing, of which “ The “stablecoin” concept has become a new hot spot where multiple funds are piling up. Digital fintech group Mercurity Fintech (MFH.US) due to its Blockchain business layout

and policy dividend expectations have received great attention.

According to the Zhitong Finance app, July 29th MFH issued an announcement stating that due to changes in the market environment and unforeseen challenges, common shares and warrants originally scheduled to be issued by the company did not meet the delivery conditions, and the relevant additional issuance plan was officially cancelled. In fact, since the announcement of the fixed increase, MFH shares have experienced sharp fluctuations. On the one hand, the cancellation of the fixed increase reflects the company's cautious attitude towards increased market volatility. On the other hand, it also conveys the importance it attaches to the interests of existing investors: driven by investor confidence, the stock price quickly rebounded to the level before the fixed increase, and the cancellation of the increase

avoided stock dilution, bringing investors higher potential returns.

On the day of the announcement, MFH's stock price was strong It rose 22.73%. Combining the current market's “hollowing out” with The “stablecoin concept” two-wheel drive, MFH has shown continued upward momentum

.

Changes in the market structure are driving small-cap stocks to empty the market

Currently, the US stock market has fully entered the cycle of shortening the market for small-cap stocks. Goldman Sachs trading department data shows that short positions against the Russell 2000 Index reached 160 in July One billion dollars, a phased high since 2021. Although UBS recently released a research

report saying that this round of shorting may be nearing its end, Goldman Sachs believes that the emptying sentiment has not yet reached its peak, and the market harbors the possibility of a new outbreak.

Judging from recent market conditions, The shorting market usually focuses on three types of targets: small-market capitalization stocks with a high ratio of bears, limited circulation, and high borrowing costs. The current bullish game is not only based on market liquidity, but also stems from the resonance of investors'

collective expectations on policy direction, industry trends, and company fundamentals.

Case review: How GME and AMC verify emptying logic

Revision history, early 2021 GME (GameStop) and AMC has unleashed a world-shattering air war. GME in 2021 January was heavily shorted by hedge funds, but retail investors and bulls quickly fought back. In less than three weeks, the stock price started in January Soared from the 8th to the 27th

2700%

From May of the same year In June, AMC also surged more than nine trading days, driven by a high short ratio and community 5 times According to data from S3 Partners, a short selling research agency at the time, the company's short positions were those of its tradable shares The ratio is close to 20%. Under a high percentage of positions, it is a good soil to empty, from May 25 to On June 4, its stock price surpassed in just nine trading days Five times, causing the bears to lose a lot

. What

's more noteworthy, though: not all shorted stocks have long-term value. Only companies that truly have a clear business direction and long-term growth logic can achieve sustainable growth after short-term fluctuations. MFH, on the other hand, also has “the popularity of the subject +

The double best standard for “fundamental support”.

Stablecoin policy implemented, unlocking blockchain investment opportunities

2025 7 In January, Trump officially signed the “GENIUS Act” to promote the legalization of stablecoins; in August, the Hong Kong Stablecoin Ordinance will also come into effect. Positive policies continue to be released, and construction of the RWA (Real World Asset) ecosystem is being accelerated Among them, blockchain technology-related companies became the core beneficiaries, and MFH relied on its stablecoin and RWA direction The in-depth layout is highly sought after by the market.

Unlock the value of MFH in two dimensions

This time The cancellation of MFH's fixed increase did not affect the operation of the company's business, and based on the current investment environment, it releases its shareholder value in two dimensions. In the short term, the vacant market will continue to drive a rapid rise in market value. Blockchain assets will also be fully

revalued under long-term stablecoin policies. Fundamental expectations drive long-term investment value.

1. Short-term explosive power in a situation where the market is being emptied

According to Fintel data, Currently, MFH has short positions of 1.815 million shares, accounting for a share of tradable shares 4.43% , and the cost of borrowing is as high as 30%. At the same time, the number of securities that can be borrowed in the market is only 2000 shares, showing extremely high shorting costs.

These characteristics are the typical “soil” for an empty market.

Recently, MFH has seen a rise in volume The technical pattern of shrinking and rising shows that the bulls are reluctant to sell. Driven by a rush to raise funds, the cost of bears has increased further, and stock price action is sufficient. Historically, the shorting of small ticket stocks such as GME and AMC also confirmed the explosive potential of a similar model.

However, judging from the long-term trend, only high-quality enterprises with fundamental support and performance expectations can usher in a continuous rise after the bears are cleared. MFH is

such a target with long-term value.

II. Long-term growth driven by fundamentals

MFH's long-term growth logic stems from the double resonance of real economy applications and capital market valuations.

At the entity level, AI empowers blocks Chain technology is gradually maturing, and commercialization scenarios continue to expand. At the capital level, the implementation of the stablecoin policy will drive the revaluation of the primary and secondary markets, which is particularly beneficial to enterprises with high-quality assets and technology

.

In June of this year, MFH announced the launch of a $800 million fundraising program to build long-term Bitcoin reserves through on-chain liquidity agreements and institutional-grade escrow The system constructs a framework for interest-bearing digital assets. In July, MFH and Solana Ventures signs $200 million equity credit agreement, plans to expand Solana ecosystem, carrying out staking, node operations, DeFi participation, and

RWA Asset Investments. The core track for the implementation of

MFH's precision card blockchain application is expected to usher in valuation revaluation and performance, driven by policy promotion and technological breakthroughs Resonance of growth

.

To reflect confidence in the company's long-term development prospects, MFH The board of directors has approved a share repurchase plan of up to $10 million

, demonstrating management's shareholder value orientation in advancing the construction of a blockchain financial platform.

Conclusion: Strong short-term trends, clear long-term values

In summary, MFH is currently in Shortening the strong upward channel driven by the market, factors such as high short positions, small circulation, and rising borrowing costs continue to attract short-term capital; at the same time, the company acts as a “stablecoin + RWA” Dual-concept stocks have significant policy and fundamental advantages, and long-term investment potential.

In the future, with the application of blockchain technology and the further implementation of financial supervision policies, MFH is expected to continue to release corporate value and become the focus of market attention.