With $0 in revenue and 35 idle machines in storage, an inactive Bitcoin miner printed 1.65 billion shares to stay alive
MGT issued about 1.65 billion shares by Aug. 6 because the inactive Bitcoin miner with no working enterprise reported no revenue for the primary half of 2026 and held simply $232,000 in money whereas warning it wants extra capital to restart operations.
The firm’s quarterly filing, submitted Aug. 7, reveals that its excellent frequent shares climbed to 6.29 billion by Aug. 6 from 4.64 billion on the finish of 2025. That is an improve of about 1.65 billion shares, or 35.6%, whereas MGT remained with out an lively supply of revenue.
MGT’s major internet hosting contract expired in March 2025, when it additionally stopped self-mining. It offered its LaFayette, Georgia mining website on May 13, 2025. The firm nonetheless had 35 Antminer S19 Pro machines in storage, however it generated no mining or internet hosting revenue through the newest six-month interval.
MGT issued shares, however most didn’t elevate money
The share improve was cut up amongst transactions with completely different functions. Through Aug. 6, MGT offered 800 million frequent shares for $700,000 in money. It issued one other 100 million shares to settle $262,000 of payables.
The largest block was not a money elevate. On June 30, MGT issued 750.1 million frequent shares and 3.25 million Series E convertible most well-liked shares in an exchange that retired a $1.22 million secured convertible note. The 6.29 billion rely covers excellent frequent inventory and doesn’t embrace these most well-liked shares.
The accounting for that alternate produced a $2.81 million non-cash loss on debt extinguishment, accounting for many of MGT’s $2.96 million first-half internet loss. MGT used $531,000 of money in working actions through the interval.
Its $232,000 of whole belongings stood towards $693,000 of present liabilities, leaving a $461,000 working-capital deficit. The submitting reported a separate stockholders’ deficit of the identical quantity.
MGT issued shares by fairness choices spanning December 2025 and the primary half of 2026, elevating $975,000, in accordance to the corporate. Its present $500,000 private placement had raised one other $25,000 after the quarter, leaving $225,000 of capability for near-term working capital.
That capability will not be money already on the stability sheet, and MGT stated it can’t guarantee traders that further capital shall be obtainable when wanted or on acceptable phrases. Those situations raised substantial doubt about its skill to maintain operations for not less than one 12 months from issuance of the monetary statements.
In a July 20 update, MGT stated it was evaluating progress alternatives and finalizing engagements with exterior advisers, however it didn’t establish a signed acquisition, a reopened operation or one other revenue-producing enterprise. Until it secures one, additional financing might hold the corporate functioning, however elevating capital alone doesn’t restore revenue.
The put up With $0 in revenue and 35 idle machines in storage, an inactive Bitcoin miner printed 1.65 billion shares to stay alive appeared first on CryptoSlate.
