A pre-revenue AI crypto startup funneled $12 million into EV as bad crypto trades erased 97% of cash in six months

What happened

A pre‑revenue AI crypto startup moved $12 million into an electric‑vehicle (EV) project, but losing crypto trades wiped out 97% of its cash in six months, leaving only $577,328 in cash at the end of June, with its RoboShare pilot and discounted‑equity facility still conditional.

Confirmed

Global impact / market context

The loss shows how volatile crypto trading can drain funding for unrelated ventures, putting the startup’s EV ambitions and any future equity deals at risk, while highlighting the danger of mixing speculative crypto assets with operational cash.

Analyst inference

Crypto markets have been under pressure, causing many firms to see large write‑downs, while investors remain cautious about funding EV projects that rely on crypto‑derived capital, creating tighter financing conditions across both sectors.

Analyst inference

What to watch

1. Whether the startup can secure additional non‑crypto funding to keep the EV effort alive, which would affect its cash runway and ability to deliver the vehicle. Analyst inference
2. The outcome of the conditional RoboShare pilot and discounted‑equity facility, as their activation could provide new revenue streams or dilute existing shareholders. Proposed
3. Regulatory scrutiny on crypto‑linked financing for non‑crypto projects, which could tighten rules and limit similar capital‑raising strategies for startups. Proposed

Affected assets

• BTC — Bitcoin
• EV — Everything

Evidence

• cryptoslate.com