CD

Chaince Digital (formerly Mercurity Fintech, itself a former crypto/blockchain shell — note the staggering -$686M accumulated deficit) has pivoted into financial advisory and broker-dealer services, with its Chaince Securities, LLC unit only receiving FINRA Continuing Membership approval in March 2025. This is a brand-new business in its current form: FY2025 revenue was just $1.87M, and while that is +277.9% YoY off a tiny base, the five-year history ($670K → $863K → $446K → $494K → $1.87M) is erratic and shrinking as often as growing. Management's own MD&A concedes revenue is 'transaction-based and project-driven,' derived from 'a limited number of engagements' and 'a small number of clients' — the opposite of the durable, recurring revenue that would justify any premium.

The valuation is the disqualifier. A $341M market cap against $1.87M of revenue is 182.5x sales, a multiple that no financial-advisory boutique — an inherently low-multiple, cyclical, capital-markets-dependent business — can support. The company loses money at every line: operating margin -202%, net margin -273%, a -$5.10M net loss that actually widened YoY despite the revenue jump, and negative operating cash flow of -$2.41M. Book value is roughly $0.55/share ($44M equity / 79.4M shares), yet the stock trades at $4.29 — about 7.8x book — for a business with no demonstrated ability to scale or reach profitability.