CIMG Inc. announced the acquisition of 230 Bitcoin, paying $24.61 million for the purchase. The transaction brings the company’s total Bitcoin holdings to 730 units, a move that signals a strategic shift toward cryptocurrency as a liquid asset reserve.
The acquisition was funded with internal capital, indicating that the company is allocating a substantial portion of its cash balance to digital assets. This decision follows a broader trend among some micro‑cap firms seeking to diversify their balance sheets amid liquidity concerns.
CIMG’s financial position remains precarious. The company reported an 83.2% year‑over‑year decline in revenue for Q3 2025 and sustained net losses. A Nasdaq delinquency notice was issued for failing to file its Q2 2025 report on time, and a 20‑for‑1 reverse stock split was executed on December 5, 2025. The Altman Z‑Score stands at –8.26, and the company’s gross and operating margins are –156.81% and –2,441.17%, respectively.
CEO Alice Wang said the company remains committed to a long‑term perspective, guided by ongoing capital accumulation. She described Bitcoin as a cornerstone asset that holds strong long‑term investment value, though she did not comment on the company’s core business performance.
In September 2025, CIMG raised $55 million in equity financing specifically to purchase 500 Bitcoin, indicating a pattern of allocating capital to cryptocurrency. The recent purchase continues that strategy, further increasing the company’s crypto exposure.
Investors reacted with concern about the company’s liquidity and core business challenges. The large cash outflow to Bitcoin, coupled with the company’s financial distress, has heightened scrutiny of its ability to meet short‑term obligations.
The transaction underscores a tension between the company’s pursuit of a potentially appreciating asset and the immediate risk to its liquidity. While management views Bitcoin as a hedge against core business volatility, the move may limit the firm’s flexibility to address its ongoing financial difficulties.
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