CIMG Inc. Faces Financial Crisis Despite $67 Million Bitcoin Treasury

CIMG Inc., a company that holds a significant Bitcoin treasury, has revealed in its quarterly filing that it needs to raise capital urgently. The firm had $5,397 in cash and $1.87 million in current assets against $9.25 million in current liabilities, resulting in a $7.38 million working-capital deficit as of June 30.

CIMG held 1,145.4 BTC valued at $67.19 million on the same date, but the company's management warned that the asset is volatile and may not be sufficient to cover its financial obligations. The firm may choose to monetize its Bitcoin holdings, but this would come with risks.

A review of CIMG's filings shows that the company's Singapore subsidiary self-custodies the coins in segregated Safe Wallet addresses under a 3-of-3 multisignature arrangement. However, there is no indication of third-party custodianship or cold storage, and no Bitcoin insurance or independent verification of the holdings.