The company is trading at $0.0009 per share and is issuing shares to service debt rather than paying cash, indicating severe cash constraints. Monitor for further dilution events and potential default if the stock price declines further, as the additional 10% interest payment in May 2027 would trigger even more share issuance.
Price Chart
Executive Summary
The Crypto Company issued 234,251,400 shares of common stock to four noteholders (Eksa Holdings LLC, Practivist Investors LLC, Robert Nail, and Three Mile Creek Future LLC) in exchange for extending the maturity of $1,054,071 in secured promissory notes from 2025 to August 2027. The shares were valued at $0.0009 per share, representing a 20% interest payment on the principal. This is a dilutive debt-for-equity swap that pushes out near-term default risk but at the cost of massive shareholder dilution.
Key Facts
- Issued 234,251,400 shares of common stock to four noteholders as a one-time interest payment for extending promissory note maturities to August 2027.
- Shares valued at $0.0009 per share, representing 20% of the aggregate principal amount of $1,054,071.
- Noteholders may receive an additional 10% interest payment in shares if principal remains unpaid as of May 11, 2027.
- The shares are restricted securities with a six-month holding period and an 8% monthly volume leak-out restriction.
- The promissory notes are secured by company assets, with security interests subordinated to Three Mile Creek and AJB Capital Investments LLC.
Financial Impact
234.25 million shares issued as interest on $1.054M in debt, representing massive dilution to existing common shareholders.
Risk Factors
- Massive dilution: 234 million shares issued against only $1.054M in debt, signaling extreme financial distress.
- Potential for additional dilution in May 2027 if principal remains unpaid, triggering another 10% stock interest payment.
- The company's stock price of $0.0009 suggests near-penny-stock status with limited liquidity and potential delisting risk.
- Secured debt with collateral means noteholders have priority claims, increasing risk for common equity holders.
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001493152-26-044159 |
| Exhibit: ex10-1.htm | 0001493152-26-044159 |
| Document: 0001493152-26-044159-index-headers.html | 0001493152-26-044159 |
| Document: 0001493152-26-044159-index.html | 0001493152-26-044159 |
| Document: 0001493152-26-044159.txt | 0001493152-26-044159 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 12d ago | 8-K | $0.001000 | awaiting T+60 | — | $0.001000 (−0.00%) |
Sep 30, 2026 27d ago | 8-K | $0.001000 | awaiting T+60 | — | $0.001000 (+0.00%) |
Sep 24, 2026 4w ago | 8-K | $0.001000 | awaiting T+60 | — | $0.001000 (−0.00%) |
Jun 24, 2026 17w ago | 10-K/A | $0.001000 $0.001000 | · 0.00% | ▲ +3.85% | $0.001000 (−0.00%) |
Jun 24, 2026 17w ago | 8-K | $0.001000 $0.001000 | · 0.00% | ▲ +3.85% | $0.001000 (−0.00%) |
Jun 11, 2026 19w ago | 8-K | $0.001000 $0.000900 | ▲ +10.00% | ▲ +13.53% | $0.001000 (−0.00%) |
May 15, 2026 23w ago | 8-K | $0.002000 $0.000800 | ▲ +60.00% | ▲ +64.85% | $0.001000 (+50.00%) |
Apr 28, 2026 26w ago | 8-K | $0.001000 $0.000900 | ▲ +10.00% | ▲ +14.11% | $0.001000 (−0.00%) |
Mar 5, 2026 33w ago | 8-K | $0.001000 $0.002000 | ▼ −100.00% | ▼ −87.22% | $0.001000 (−0.00%) |
US Market Status
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