Why SHF Holdings, Inc. (SHFS) Soared on Monday

We recently compiled a list of the 10 Micro-, Small-Cap Companies Lead Monday's Charge. In this article, we are going to take a look at where SHF Holdings, Inc. (NASDAQ:SHFS) stands against the other stocks.

The stock market ended the first trading day of the week in the negative territory, with all major indices recording hefty losses, as investors continued to digest the impact of President Donald Trump’s tariff policies and his criticism of the Federal Reserve.

The tech-heavy Nasdaq fell the hardest among the major indices, down 2.55 percent, followed by the Dow Jones at 2.48 percent, and the S&P 500 at 2.36 percent.

Meanwhile, 10 companies bucked a broader market bloodbath, recording strong gains during the day. We have listed the 10 top-performing companies, dominated by micro- to small-cap stocks, and detailed the reasons behind their gains.

To come up with the list, we considered only the stocks with less than $1 billion in market capitalization.

SHF Holdings, Inc. (NASDAQ:SHFS)

SHF Holdings, Inc. (NASDAQ:SHFS), which operates Safe Harbor Financial, grew its share prices by 95.79 percent on Monday, a second straight day, to end at $4.19 apiece as investors snapped up shares in the company following news that it partnered with FundCanna to support cannabis-related businesses across the US.

In a statement last week, SHF Holdings, Inc. (NASDAQ:SHFS) said it entered into an agreement with FundCanna to bring accessible, transparent funding options and compliant banking services to cannabis-related businesses within the US.

The partnership will enable FundCanna to introduce clients to Safe Harbor, and at the same time, the latter to introduce qualified clients to FundCanna for working capital, equipment financing, and other credit-based solutions.

Under the agreement, all clients approved by FundCanna and referred by Safe Harbor will be onboarded to deposit loan proceeds directly into Safe Harbor-managed bank accounts.

Overall SHFS ranks 2nd on our list of Monday's top performers. While we acknowledge the potential of SHFS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SHFS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.