MGT issued about 1.65 billion shares by Aug. 6 because the inactive Bitcoin miner with no working enterprise reported no income for the primary half of 2026 and held simply $232,000 in money whereas warning it wants extra capital to restart operations.
The corporate’s quarterly submitting, submitted Aug. 7, exhibits that its excellent widespread shares climbed to six.29 billion by Aug. 6 from 4.64 billion on the finish of 2025. That is a rise of about 1.65 billion shares, or 35.6%, whereas MGT remained with out an lively income.
MGT’s main internet hosting contract expired in March 2025, when it additionally stopped self-mining. It bought its LaFayette, Georgia mining website on Could 13, 2025. The corporate nonetheless had 35 Antminer S19 Professional machines in storage, but it surely generated no mining or internet hosting income throughout the newest six-month interval.
MGT issued shares, however most didn’t elevate money
The share enhance was break up amongst transactions with completely different functions. Via Aug. 6, MGT bought 800 million widespread shares for $700,000 in money. It issued one other 100 million shares to settle $262,000 of payables.
The biggest block was not a money elevate. On June 30, MGT issued 750.1 million widespread shares and three.25 million Collection E convertible most well-liked shares in an trade that retired a $1.22 million secured convertible notice. The 6.29 billion depend covers excellent widespread inventory and doesn’t embrace these most well-liked shares.
The accounting for that trade 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 throughout the interval.
Its $232,000 of whole property 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, based on the corporate. Its present $500,000 personal 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 steadiness sheet, and MGT mentioned it can’t guarantee traders that further capital will probably be out there when wanted or on acceptable phrases. These situations raised substantial doubt about its means to maintain operations for a minimum of one 12 months from issuance of the monetary statements.
In a July 20 replace, MGT mentioned it was evaluating progress alternatives and finalizing engagements with exterior advisers, but it surely didn’t determine a signed acquisition, a reopened operation or one other revenue-producing enterprise. Till it secures one, additional financing could preserve the corporate functioning, however elevating capital alone doesn’t restore income.
