Executive Summary / Key Takeaways

• AGM Group Holdings Inc. (AGMH) has undergone a profound transformation from a legacy FinTech provider to an integrated technology company focused on blockchain-oriented ASIC chips and advanced cryptocurrency mining equipment, alongside its FinTech services. This strategic pivot, initiated in 2021, is the core investment thesis.
• The company's proprietary KOI MINER C16, with a hash rate of 113 TH/s and energy efficiency of 30 J/T, demonstrates a technological edge in the competitive crypto mining hardware market. Strategic partnerships, notably with HighSharp Electronic Technology, are crucial for R&D and supply chain optimization.
• AGMH is actively expanding its global footprint, with a significant strategic initiative to establish a subsidiary in Canada and potentially relocate headquarters, R&D, and manufacturing to North America, aiming to be closer to key customers and leverage stable energy resources.
• Recent financial activities include securing up to $6 million in convertible advances in September 2025, with an initial gross proceed of $1.38 million, bolstering liquidity for strategic growth. The company also successfully regained Nasdaq compliance in June 2025 following a 50-for-1 share consolidation.
• While AGMH has demonstrated strong revenue growth in its new segment, particularly in 2021, and maintains a positive outlook for quarter-to-quarter improvement, it faces inherent risks from cryptocurrency market volatility, intense competition, and potential shareholder dilution from convertible financing.

A Strategic Pivot Towards Digital Frontiers

AGM Group Holdings Inc. (NASDAQ:AGMH) is a technology company that has strategically repositioned itself at the nexus of financial technology and the burgeoning blockchain ecosystem. Incorporated in 2015, AGMH initially focused on FinTech software services, a segment that saw limited financial performance in its early years, with 2020 revenues of approximately $0.05 million and a net loss of $1.07 million. This foundational period, however, laid the groundwork for a transformative shift.

In August 2021, AGMH embarked on a significant strategic upgrade, pivoting to become an integrated technology company specializing in the research, development, and sale of blockchain-oriented Application-Specific Integrated Circuit (ASIC) chips and advanced cryptocurrency mining equipment, while continuing to offer FinTech software services. This bold move was a direct response to the evolving digital landscape and the increasing demand for high-performance computing solutions. The company's mission is to become a key participant and contributor in the global FinTech and blockchain ecosystem.

Technological Edge and Innovation Roadmap

At the heart of AGMH's transformation lies its commitment to technological differentiation. The company's flagship product, the KOI MINER C16, stands out in the competitive cryptocurrency mining hardware market. This advanced machine boasts a hash rate of 113 terahash per second (TH/s) and an impressive energy efficiency ratio of 30 joules per terahash (J/T). Management highlights the C16 as one of the highest-spec and most energy-efficient machines available, a critical advantage in an industry increasingly focused on operational costs and environmental impact.

AGMH's technological roadmap is deeply intertwined with strategic partnerships. The company has deepened its cooperation with HighSharp Electronic Technology, a collaboration designed to optimize raw material procurement, enhance mining equipment production and assembly, and streamline logistics. This partnership is particularly vital in mitigating challenges posed by global semiconductor shortages, as it grants AGMH access to HighSharp's existing and future wafer orders from major fabs like Samsung (SSNLF), SMIC (SMICY), and TSMC (TSM).

Looking ahead, AGMH plans to establish a joint venture (JV) with HighSharp in the U.S., with AGMH holding a 60% stake. This JV aims to fully integrate HighSharp's R&D capabilities, personnel, and future Bitcoin mining machine patents into AGMH. This integration is expected to "leapfrog our peers" by locking in pricing and overcoming technical barriers in R&D and supply chain sourcing, ultimately boosting AGMH's competitive advantages and enabling a higher-margin business. The increased profit margins from the JV are intended to be reinvested into R&D for future product iterations, ensuring continuous innovation in advanced, energy-efficient chips.

Expanding Global Footprint and Operational Resilience

AGMH's strategic initiatives extend beyond technological development to include a significant geographical expansion. Recognizing North America as a key region for Bitcoin mining due to its efficient and clean energy resources and stable regulatory environment, AGMH is actively planning to relocate its headquarters, research center, and manufacturing facilities to the region. This move aims to bring the company closer to its primary customer base, resolve logistics issues, and mitigate external operational impacts, such as those experienced from China lockdowns and supply chain disruptions. The company has already started establishing a subsidiary in Canada to deepen its engagement in energy development, data center construction, and mining operations in North America.

The company is evaluating various options for its North American operations, including collaborations with local manufacturers or building its own factory. A comprehensive cost-benefit analysis for these options was expected to be completed by Q2 2022. This proactive approach underscores AGMH's commitment to operational resilience and strategic alignment with market opportunities.

Financial Performance and Capital Structure Evolution

AGMH's financial trajectory reflects its strategic pivot. In 2021, the company achieved full-year revenues of $36.71 million, a substantial increase from 2020, with $31.37 million generated in the fourth quarter alone. This growth was primarily driven by the sales of cryptocurrency mining machines, with 4,896 units delivered in Q4 2021, representing 440,000 terahash per second of computing power. The company transitioned to profitability in 2021, reporting a net income of $3.53 million, a significant turnaround from the $1.07 million net loss in 2020.

As of December 31, 2024, AGMH reported annual revenue of $32.04 million and an annual net income of $3.12 million. The company's TTM (trailing twelve months) gross profit margin stands at 21.40%, with an operating profit margin of 18.56% and a net profit margin of 9.73%. Its current ratio is 1.32, and the debt-to-equity ratio is 0.00, indicating a healthy balance sheet.

To fuel its growth, AGMH has actively managed its capital structure. In December 2021, the company raised $20 million in gross proceeds through a registered direct offering and private placement, enhancing its cash flow and liquidity. More recently, on September 22, 2025, AGMH entered into agreements for up to $6 million in original issue discount convertible advances with an institutional investor. The initial closing provided $1.38 million in gross proceeds from a $1.50 million principal amount advance. These advances are convertible into Class A ordinary shares at a floating price based on 93% of the lowest volume-weighted average price (VWAP) in the ten trading days preceding conversion, which could lead to shareholder dilution.

Furthermore, AGMH addressed Nasdaq compliance challenges in 2025. After receiving a staff determination notice in April 2025 for its bid price falling below $0.10, the company successfully executed a 50-for-1 share consolidation, effective June 3, 2025. This action enabled AGMH to regain compliance with Nasdaq's $1.00 bid price requirement by June 18, 2025, ensuring its continued listing on The Nasdaq Capital Market through at least September 29, 2025.

Competitive Landscape and Strategic Positioning

AGMH operates in a dynamic and intensely competitive landscape, primarily against specialized cryptocurrency mining hardware manufacturers like Canaan Inc. (CAN), financial services firms offering trading platforms such as Interactive Brokers (IBKR), and technology hardware giants like NVIDIA Corporation (NVDA) whose GPUs are used in mining.

AGMH's competitive strategy leverages its integrated approach, combining blockchain-oriented ASIC chip R&D, advanced crypto mining machine production, and FinTech software services. While Canaan focuses purely on crypto mining hardware, AGMH's offerings, including its KOI MINER C16 and customization services, aim to provide a more holistic solution. AGMH's partnership with HighSharp is a critical differentiator, enabling it to secure semiconductor resources and accelerate R&D, a factor that can be challenging for smaller players. In terms of financial performance, AGMH's TTM gross profit margin of 21.40% compares to Canaan's historical performance, where profitability has been volatile due to crypto market cycles.

Against Interactive Brokers, which boasts a robust and established trading platform, AGMH differentiates itself by offering a dual focus on trading software and specialized hardware. While Interactive Brokers may have a broader market reach and more mature infrastructure, AGMH's niche appeal to users seeking diversified tech solutions, including crypto mining, provides a distinct value proposition.

Compared to NVIDIA, a leader in high-performance computing hardware, AGMH's focus on specialized ASIC chips for crypto mining allows it to offer tailored solutions. While NVIDIA's scale and innovation speed in general-purpose GPUs are formidable, AGMH's strategic partnerships and dedicated R&D for blockchain-specific applications aim to carve out a competitive edge in energy efficiency and performance within its niche. The KOI Miner C16's 30 J/T energy efficiency is a testament to this focused innovation. AGMH's TTM net profit margin of 9.73% indicates a level of profitability, though it may trail the higher margins typically seen in large-scale, diversified tech leaders like NVIDIA.

The company's planned relocation to North America is a strategic response to competitive pressures and market dynamics, aiming to reduce logistics costs and enhance customer proximity. This move is also intended to capitalize on the region's stable regulatory environment and access to clean energy, which are increasingly important competitive factors in the crypto mining industry.

Outlook and Risks

AGMH's management maintains a positive outlook, anticipating continued robust demand for its mining machines and expecting to fulfill a substantial number of outstanding orders. Co-CEO Wenjie Tang stated that 2021 was "just a beginning of a new journey" and that the company would "further increase our supplies and strengthen our presence in the global blockchain ecosystem." While a full-year 2022 revenue projection was deemed "almost impossible" due to external factors like China lockdowns and supply chain disruptions, management expressed optimism for "steadily improving and growing business" on a quarter-to-quarter basis. The company aims to upgrade its crypto mining equipment to raise hash rates and invest in next-generation chips, believing hash power is the "core element to driving the entire industry."

Despite the optimistic outlook, AGMH faces several risks. The inherent volatility of the cryptocurrency market poses a significant risk, as fluctuations in digital asset prices can directly impact demand for mining equipment and the company's profitability. Supply chain disruptions, particularly for semiconductors, remain a concern, although strategic partnerships are in place to mitigate these. Furthermore, the recent convertible financing, while providing essential capital, introduces the risk of shareholder dilution due to the floating conversion price mechanism. Regulatory changes in the FinTech and cryptocurrency sectors across its operating regions (Hong Kong, Singapore, Mainland China, and potentially North America) could also impact operations and profitability.

Conclusion

AGM Group Holdings Inc. is undergoing a significant and strategic transformation, shifting its core focus to become a prominent player in the blockchain and cryptocurrency mining technology sector. This pivot, underpinned by its advanced KOI MINER C16 and strategic partnership with HighSharp Electronic Technology, positions AGMH to capitalize on the growing demand for high-performance, energy-efficient mining solutions. The company's proactive steps to secure financing and ensure Nasdaq compliance, coupled with its planned expansion into North America, demonstrate a clear vision for long-term growth and operational resilience.

While AGMH's journey is not without risks, including market volatility and potential shareholder dilution, its commitment to technological innovation, strategic partnerships, and geographical diversification forms a compelling investment narrative. The company's ability to execute its North American expansion and successfully integrate the HighSharp joint venture will be critical determinants of its future success and its capacity to deliver sustained value in the rapidly evolving digital asset landscape.