AI Crypto Startup's Cash Reserves Plummet by 97% in Six Months

A pre-revenue AI crypto startup, AIxCrypto Holdings, has found itself in a precarious financial situation after its cash reserves plummeted by 97% over six months. The company's cash balance fell from $19.33 million at the end of December to just $577,328 in June.

The significant decline in cash reserves was largely due to the company's net loss of $10.27 million during the same period. Additionally, AIxCrypto incurred a financing outflow of $12 million for Faraday Future securities and used $7.94 million of cash in operations.

The company's digital assets also took a hit, with their fair value decreasing to $5.21 million from $10.25 million at the end of December. The majority of AIxCrypto's Bitcoin holdings, which accounted for 52% of its June portfolio, were exposed to crypto-market volatility.