AI Crypto Startup Bleeds 97% Cash Amid Bad Trades, EV Investment

A pre-revenue AI crypto startup called AIxCrypto Holdings has taken a significant hit in its cash reserves due to bad trades on digital assets. The company's balance fell from $19.33 million at December 31 to just $577,328 at June 30, a decline of 97%. This massive drop is attributed to the company's use of $7.94 million of cash in operations and a $12 million financing outflow for Faraday Future securities.

Faraday Future is AIxCrypto's controlling majority stockholder, which makes the investment an allocation involving the company that controls it rather than an unrelated portfolio holding. The digital assets held by AIxCrypto also took a hit, falling in fair value to $5.21 million from $10.25 million at year-end.

The company has introduced its robot-rental marketplace called RoboShare and is preparing for a Los Angeles pilot. However, it has not yet shown that the marketplace can generate recognized revenue fast enough to reduce the potential need for crypto sales or discounted equity.