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, reveals that its excellent frequent 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 energetic income.
MGT’s major internet hosting contract expired in March 2025, when it additionally stopped self-mining. It bought its LaFayette, Georgia mining website on Might 13, 2025. The corporate nonetheless had 35 Antminer S19 Professional machines in storage, however it generated no mining or internet hosting income in the course of the newest six-month interval.
MGT issued shares, however most didn’t increase money
The share improve was break up amongst transactions with totally different functions. By means of Aug. 6, MGT bought 800 million frequent shares for $700,000 in money. It issued one other 100 million shares to settle $262,000 of payables.
The most important block was not a money increase. On June 30, MGT issued 750.1 million frequent shares and three.25 million Sequence E convertible most popular shares in an trade that retired a $1.22 million secured convertible notice. The 6.29 billion rely covers excellent frequent inventory and doesn’t embrace these most popular 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 web loss. MGT used $531,000 of money in working actions in the course of 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 via fairness choices spanning December 2025 and the primary half of 2026, elevating $975,000, in keeping with 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 just isn’t money already on the stability sheet, and MGT mentioned it can not guarantee buyers that further capital can be out there when wanted or on acceptable phrases. These circumstances 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 replace, MGT mentioned it was evaluating development alternatives and finalizing engagements with exterior advisers, however it didn’t determine a signed acquisition, a reopened operation or one other revenue-producing enterprise. Till it secures one, additional financing might maintain the corporate functioning, however elevating capital alone doesn’t restore income.
