Zero-revenue mining companies issued 1.65 billion additional shares to renew their lives, and 35 idle mining machines were put in place

According to Woofun AI, Bitcoin mining company MGT (MGTI.US) is in an existential crisis and is seeking capital injections to maintain operations through a large-scale increase of 1.65 billion shares.

Business stagnation caused MGT (MGTI.US) to record zero revenue in the first half of 2026, leaving only $23.2 million in cash. Its core escrow contract expired in March 2025, and mining activities immediately ceased; on May 13, 2025, the company sold the Lafayette, Georgia mine.

Although 35 Antminers S19 Pro are still sealed in the warehouse, no mining or hosting revenue has been generated in the last six months. According to data compiled by Woofun AI, as of August 6, MGT (MGTI.US) sold 800 million shares of common stock for $700,000 in cash and issued an additional 100 million shares to cover $262,000 in accounts payable.

Debt settlement resulted in non-cash losses of $2.81 million, accounting for almost the entire net loss of $2.96 million in the first half of the year. Daily operations consumed $531,000 in cash during the same period, further exacerbating the depletion of liquidity. According to the balance sheet, MGT (MGTI.US)'s total assets are only US$23.2 million, while current liabilities are as high as US$69.3 million, resulting in a working capital gap of US$461,000 and a shareholders' equity gap of the same size.

The company cannot guarantee that additional financing can be obtained on reasonable terms. This structural imbalance has raised serious doubts about the market's ability to continue operating for at least one year after the release of financial statements.