AI Crypto Startup Loses 97% of Cash in Six Months
Unsound trades and a $12 million venture into electric vehicles stripped the pre-revenue firm down to its last half-million.
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Key takeaways
- Cash reserves plunged 97% in six months down to $577,328 by the end of June.
- The pre-revenue startup funneled $12 million into EV initiatives.
- Crucial lifelines, including a RoboShare pilot, remain conditional.
Six months was all it took for a pre-revenue AI crypto startup to burn through 97% of its cash reserves. By the end of June, the firm's balance sheet showed just $577,328 left in the bank.
Poorly executed crypto trades accounted for most of the damage. But trading losses don't tell the whole story. Despite generating zero revenue, the startup also committed $12 million to the electric vehicle sector.
The company's survival now turns on external funding arrangements that are anything but locked in. Both the RoboShare pilot program and a discounted equity financing facility remain tied to conditions the firm hasn't met.
Why it matters
Pairing high-risk speculative trading with heavy hardware capital expenditures is a reliable way to sink a business with no incoming cash flow. Trendy sector narrative tricks don't cover up basic treasury failures. When hard cash runs out, conditional agreements can't meet payroll.
Source: CryptoSlate
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Daniel Okoro
Daniel tracks crypto regulation and policy across the US, EU and Asia, with a decade in financial journalism.
