According to data from Woofun AI, bitcoin mining company MGT (MGTI.US) is facing a survival crisis, announcing a massive issuance of 1.65 billion new shares to secure funding and keep operations afloat. The business halt led MGT (MGTI.US) to report zero revenue in the first half of 2026, with only $232,000 in cash remaining on hand.
Its core hosting contract expired in March 2025, immediately halting all mining activities. On May 13, 2025, the company sold its mining facility located in Lafayette, Georgia. Although 35 Antminer S19 Pro units remain locked in storage, MGT (MGTI.US) has generated no mining or hosting revenue for the past six months.
Woofun AI's compiled data shows that as of August 6, MGT (MGTI.US) sold 800 million common shares for $700,000 in cash and issued an additional 100 million shares to settle $262,000 in accounts payable. The debt settlement triggered a non-cash loss of $2.81 million, accounting for nearly the entire net loss of $2.96 million recorded in the first half of the year. During the same period, daily operations consumed $531,000 in cash, further exacerbating the liquidity crunch.
The balance sheet reveals that MGT (MGTI.US) has total assets of just $232,000, while its current liabilities stand at $693,000, creating a working capital deficit of $461,000 and a shareholder equity deficit of the same size. The company cannot guarantee it will secure additional financing on reasonable terms, and this structural imbalance has raised serious doubts about its ability to continue as a going concern for at least one year following the release of its financial statements.
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