By M. Marin
NASDAQ: MFI
READ THE FULL MFI RESEARCH REPORT
Plans underway to build digital asset treasury (DAT) capabilities include investments in BCH & other digital assets
mF International Limited (NASDAQ: MFI) has launched a strategic initiative to focus on the crypto space and is developing infrastructure for the digital asset ecosystem. The company is transforming its business following a management transition in late 2025. At that time, Mr. Dawei (David) Yuan assumed the role of Chief Executive Officer on November 25, 2025. He has a strong technical background in fintech and digital assets, including substantial experience building blockchain infrastructure. He founded fintech company Red Dot Technology Limited and ColdLar Wallet, which is a secure cold wallet solution for digital assets, and he co-founded the Huobi cryptocurrency exchange in China. MFI is leveraging the CEO’s experience to execute its digital asset strategy.
Under Mr. Yuan’s leadership, the company has formed strategic investments in product innovation and marketing initiatives over the past several quarters to refocus its activities in the crypto space. Specifically, MFI has implemented a digital asset treasury (DAT) strategy, which will include investments in BCH (Bitcoin Cash) and other digital assets, as noted.
In December 2025, MFI conducted a private placement and raised $500 million to support its launch of what it believes is the industry's first Bitcoin Cash (BCH) DAT strategy. MFI has highlighted BCH's scalable, low-cost network as a benefit that it believes can help preserve and compound shareholder value, particularly compared to traditional cash that loses purchasing power in an inflationary environment. MFI sees these as key features that it believes make BCH attractive as an investment opportunity. The company is actively executing its DAT strategy through BCH mining operations, growing on-chain production capacity to support network security and in order to generate sustainable digital asset yield. MFI intends to prioritize investing in BCH for its DAT strategy, reflecting the asset’s low transaction fees and because MFI believes it is undervalued relative to bitcoin and holds the potential to become a global payment platform.
As MFI launched its DAT initiative, the global crypto market experienced substantial volatility. The price of BCH has appreciated in recent weeks, but often in a lumpy path. MFI recently introduced a new corporate website, https://mfi.ltd, as well as a new investor relations website (https://ir.mfi.ltd), designed to provide a view into the strategic direction it is pursuing as it executes its transition to emphasize building a digital asset ecosystem. According to the corporate website, it appears that MFI has expanded its BCH holdings significantly since year-end 2025.
Bitcoin Cash is P2P electronic cash that has a fixed supply of coins outstanding and authorized to be issued, which is aimed at retaining the coin’s value. The Bitcoin Cash protocol ensures there will never be more than 21 million coins in circulation. Its fixed supply is designed to enable Bitcoin Cash to retain its value over time. According to the BCH website, the benefits of Bitcoin Cash include that BCH can be sent anywhere globally to anyone 24-7 with nearly no fees added, regardless of the amount that needs to be dispensed. Moreover, the BCH website notes that Bitcoin Cash provides full, sovereign control over and access to funds from anywhere in the world.
Application for a special license to launch digital asset-denominated life insurance operation
The company also plans to apply for a Bermuda Class IILT Insurance License, which is a specialized regulatory license that the Bermuda Monetary Authority (BMA) issues. The company needs to obtain a Class IILT license in order to launch operations in the BMA 'Sandbox' for innovative insurers and then graduate to the full Class IILT license, depending on if/when it obtains BMA approvals. If approved, the license will enable MFI to operate a digital asset-denominated direct life insurance business aimed at helping digital asset holders protect, grow, and transfer digital wealth. Because crypto is borderless and a global currency and store of value, and reflecting early mover advantage, MFI is optimistic about this initiative.
This is a new and emerging niche within the insurance industry, and MFI is optimistic about its prospects and growth opportunities as an early entrant. Moreover, the need to obtain regulatory licensing means there currently are few companies operating in this space and barriers to entry are high.
MFI is developing infrastructure within a regulated, compliant backdrop that allows premiums, policy values, loans, and benefits to be held and transacted completely in native digital assets. This is designed to protect policyholders and facilitate wealth preservation and the intergenerational transfer of wealth without forced liquidations or forced exits from the ecosystem.
Initial geographic focus for insurance business on markets in Asia
MFI expects the crypto insurance operation, once launched, will overtake its legacy business over time, although the timeline for launching its insurance operation is unclear, as noted. To market its insurance product portfolio, the company intends to conduct joint marketing with digital asset platforms.
MFI expects to maintain an initial focus on Asia when/if it initiates this new business line. According to the Organisation for Economic Co-operation and Development (OECD), “Asia has emerged as a major global hub for crypto-asset activity, although with diverging adoption levels across jurisdictions. The region saw a 69% year-on-year growth rate in blockchain-based crypto-asset transactions between June 2024 and June 2025, the highest among all regions…”
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