MGT Capital Investments issued roughly 1.65 billion new shares by Aug. 6, pushing its outstanding common stock from 4.64 billion to 6.29 billion — a 35.6% jump. The company also reported no revenue for the first half of 2026 and held just $232,000 in cash, raising fresh doubts about its ability to keep operating.
Why the share count ballooned
The dilution came in three pieces. MGT sold 800 million shares for $700,000 in cash, issued 100 million shares to settle $262,000 of payables, and on June 30 handed out 750.1 million common shares plus 3.25 million Series E convertible preferred shares to retire a $1.22 million secured convertible note.
That last exchange triggered a $2.81 million non-cash loss on debt extinguishment. The loss accounted for most of MGT's $2.96 million net loss for the six-month period. The company used $531,000 of cash in operating activities during that time.
No mining, no hosting, no revenue
MGT's primary hosting contract expired in March 2025, and it stopped self-mining. It sold its LaFayette, Georgia mining site on May 13, 2025. The company still has 35 Antminer S19 Pro machines in storage, but those generated no mining or hosting revenue in the latest period.
The balance sheet is thin. MGT listed $232,000 in total assets against $693,000 of current liabilities, leaving a $461,000 working-capital deficit. Stockholders' equity is negative by the same amount.
What's left to work with
MGT raised $975,000 through equity offerings spanning December 2025 and the first half of 2026. A current $500,000 private placement had brought in another $25,000 after the quarter ended, leaving $225,000 of capacity for near-term working capital — but that's not cash on hand yet.
The company warned it needs more capital to restart operations and expressed substantial doubt about its ability to sustain operations for at least one year. In a July 20 update, MGT said it was evaluating growth opportunities and finalizing engagements with outside advisers, but did not identify a signed acquisition, a reopened operation, or another revenue-producing business.
The $225,000 remaining in the private placement could buy some time, but it won't cover the $531,000 quarterly cash burn rate from the first half. Whether MGT can line up a new hosting deal, sell its stored miners, or find an acquisition before the cash runs out is the open question.
