Mercurity Fintech enters JV to expand into AI hardware intelligent manufacturing

Mercurity Fintech Holding (MFH)announced the signing of a term sheet with a high-tech enterprise specialized in the manufacturing and sale of precision fasteners, structural parts and other precision metal parts products for new energy vehicles and smart electronic devices. This collaboration aims to establish a strategic joint venture in Hong Kong, focused on expanding into AI hardware intelligent manufacturing and supporting advanced cooling solutions for AI servers. The term sheet sets forth the indicative material terms and conditions for the formation of the JV and is subject to the definitive agreements to be entered into by the parties. These terms are non-binding unless specifically stated otherwise, and the definitive agreements will include customary representations, warranties, and indemnifications for transactions of a similar nature and scale. Key Highlights of the Joint Venture: Expansion into AI Hardware Intelligent Manufacturing: The JV will focus on producing precision components and accessories tailored to the needs of global leaders in artificial intelligence, smart driving, and wearable technology, including leading AI server companies and technology companies. The JV’s establishment aligns with Mercurity Fintech’s strategic vision to diversify its business and enter the fast-growing AI hardware manufacturing sector. Strategic Position with Cooling Systems: The JV aims to explore opportunities in advanced cooling solutions, which are critical for next-generation AI servers. Our JV partner has collaboration with the world leading AI server company, including recent requests to produce samples for liquid cooling projects, which highlights its proven capabilities in delivering advanced solutions. Capital Contributions and Structure: The initial investment amounts to $9.8 million, with Mercurity Fintech holding a 51% stake. This financial commitment underscores both parties’ confidence in the potential of the partnership. Global Reach and Manufacturing Excellence: The JV envisions establishing a manufacturing hub to streamline operations and ensure the delivery of high-quality products to clients worldwide. Enhanced Product Offering: In addition to liquid cooling systems, the JV will explore opportunities to manufacture sub-assemblies and precision parts for next-generation AI, automotive, and wearable technologies, diversifying its product portfolio and solidifying its market presence.