Bitcoin Treasury Holder CIMG Inc. Faces Working-Capital Deficit Despite Millions in Crypto Holdings

Bitcoin treasury holder CIMG Inc. said in its Aug. 13 quarterly filing that it needs to raise capital immediately, even though it held 1,145.4 BTC valued at $67.19 million on June 30.

CIMG had just $5,397 in cash and $1.87 million in current assets against $9.25 million in current liabilities, leaving a $7.38 million working-capital deficit.

CIMG said it may monetize its Bitcoin, but warned the asset is volatile and the holdings are not committed or assured financing. Management’s plans to seek more equity or debt had not alleviated doubt about the company’s ability to continue as a going concern.

Why the Bitcoin reserve is not operating cash

A June 12 registration statement said CIMG’s Singapore subsidiary self-custodies the coins in segregated Safe Wallet addresses under a 3-of-3 multisignature arrangement. The CEO, CFO, and a director each hold separate credentials, and every signer must approve a transfer. If one is unavailable, moving coins could be delayed or prevented.

The later 10-Q says the coins may be monetized, but CIMG disclosed no third-party custodian or cold storage, no Bitcoin insurance, and no independent third-party verification of the holdings.

The June registration statement also described Bitcoin as a long-term reserve. At that time, CIMG said it did not expect routine operating use or near-term monetization and had no formal active-trading, monetization, or hedging policy.

The reviewed filings do not establish that every coin is unpledged or unencumbered.

CIMG held 500 BTC as of Sept. 30, 2025, then completed a 230 BTC purchase in December for $24.46 million, bringing the total to 730 BTC.

In June, CIMG sold 900 million units for $13.5 million payable in Bitcoin at a $65,000 reference price. Each unit included one share and one warrant, and the company said it later exercised all 900 million warrants.

The 10-Q reports $51.46 million of Bitcoin additions during the nine months and no disposals. Subtracting the $24.46 million December purchase leaves $27 million.

At the financing’s $65,000 reference price, that equals about 415.4 BTC and reconciles the increase from 730 BTC to 1,145.4 BTC after rounding. This is an inference from the filings’ arithmetic because the company did not separately disclose the warrant exercise payment medium or resulting coin count.

CIMG’s loss attributable to the company widened to $10.49 million for the June quarter and $45.36 million for the nine-month period. Operations used $10.35 million of cash over those nine months.

Without new financing or another adequate source of liquidity, CIMG’s ability to keep funding operations remains in doubt. The disclosure shows why a large treasury carrying value does not by itself pay day-to-day obligations.