With $0 in revenue and 35 idle machines in storage, an inactive Bitcoin miner printed 1.65 billion shares to stay alive
Only 800 million of those shares raised $700,000 in cash as the inactive miner searched for an operating restart.
Quick Take
- The inactive miner reported no first-half revenue and held just $232,000 in cash.
- Only 800 million shares raised $700,000 in cash; another 100 million settled $262,000 of payables.
- A debt exchange retired a $1.22 million note as MGT warned it needs more capital to restart operations.
MGT issued about 1.65 billion shares by Aug. 6 as the inactive Bitcoin miner with no operating business reported no revenue for the first half of 2026 and held just $232,000 in cash while warning it needs more capital to restart operations.
The company’s quarterly filing, submitted Aug. 7, shows that its outstanding common shares climbed to 6.29 billion by Aug. 6 from 4.64 billion at the end of 2025. That is an increase of about 1.65 billion shares, or 35.6%, while MGT remained without an active source of revenue.
MGT’s primary hosting contract expired in March 2025, when it also stopped self-mining. It sold its LaFayette, Georgia mining site on May 13, 2025. The company still had 35 Antminer S19 Pro machines in storage, but it generated no mining or hosting revenue during the latest six-month period.
MGT issued shares, but most did not raise cash
The share increase was split among transactions with different purposes. Through Aug. 6, MGT sold 800 million common shares for $700,000 in cash. It issued another 100 million shares to settle $262,000 of payables.
The largest block was not a cash raise. On June 30, MGT issued 750.1 million common shares and 3.25 million Series E convertible preferred shares in an exchange that retired a $1.22 million secured convertible note. The 6.29 billion count covers outstanding common stock and does not include those preferred shares.
The accounting for that exchange produced a $2.81 million non-cash loss on debt extinguishment, accounting for most of MGT’s $2.96 million first-half net loss. MGT used $531,000 of cash in operating activities during the period.
Its $232,000 of total assets stood against $693,000 of current liabilities, leaving a $461,000 working-capital deficit. The filing reported a separate stockholders’ deficit of the same amount.
MGT issued shares through equity offerings spanning December 2025 and the first half of 2026, raising $975,000, according to the company. Its current $500,000 private placement had raised another $25,000 after the quarter, leaving $225,000 of capacity for near-term working capital.
That capacity is not cash already on the balance sheet, and MGT said it cannot assure investors that additional capital will be available when needed or on acceptable terms. Those conditions raised substantial doubt about its ability to sustain operations for at least one year from issuance of the financial statements.
In a July 20 update, MGT said it was evaluating growth opportunities and finalizing engagements with outside advisers, but it did not identify a signed acquisition, a reopened operation or another revenue-producing business. Until it secures one, further financing may keep the company functioning, but raising capital alone does not restore revenue.
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