Mawson Infrastructure Group Initiates Legal Action Seeking Damages Over Dismissed Involuntary Bankruptcy Filing
MIDLAND, Pa., December 30, 2025 – Mawson Infrastructure Group Inc. (NASDAQ: MIGI) today announced it has filed an adversary proceeding in the United States Bankruptcy Court for the District of Delaware. This legal action, formally titled “Mawson Infrastructure Group Inc. versus W Capital Advisors Pty Ltd, et al.,” is brought under Section 303(i) of the U.S. Bankruptcy Code, and seeks to recover attorneys’ fees, costs, and damages from parties involved in a previously dismissed involuntary bankruptcy petition filed against Mawson in December 2024.
The complaint alleges that the petitioning creditors – identified as W Capital Advisors Pty Ltd, Marshall Investments GCP Pty Ltd, Rayra Pty Ltd, and associated individuals – orchestrated a deliberate campaign to undermine Mawson. This alleged coordinated effort resulted in significant financial repercussions for the company, including an estimated $23 million loss in market capitalization over a single trading day, considerable reputational harm, and substantial legal expenditures.
The involuntary bankruptcy petition was officially dismissed with prejudice by court order on November 4, 2025. Crucially, the court order explicitly preserved Mawson’s right to pursue legal recourse against the petitioning creditors. Mawson’s current lawsuit aims to secure compensatory and punitive damages, as well as sanctions and injunctive relief, to address the alleged misconduct and deter future abuses of the bankruptcy process.
“This litigation is fundamentally about safeguarding shareholder value and ensuring accountability for egregious misconduct,” stated Kaliste Saloom, Mawson’s Interim CEO and General Counsel. “We are resolute in our pursuit of full recovery to protect our shareholders’ investment.”
**Mawson’s Business Focus and Strategic Outlook**
Mawson Infrastructure Group is a technology company specializing in the design, construction, and operation of advanced digital infrastructure platforms. Its services cater to a range of high-demand sectors, including Artificial Intelligence (AI), High-Performance Computing (HPC), digital assets (such as Bitcoin mining), and other compute-intensive applications. The company offers both proprietary self-mining operations and colocation/hosting services for enterprise clients, underpinned by a vertically integrated infrastructure model designed for scalability and operational efficiency.
A key tenet of Mawson’s operational strategy is the utilization of carbon-free energy sources, including nuclear power, to fuel its compute platforms. This approach aligns with the growing demand for sustainable digital infrastructure solutions to support the burgeoning digital economy. With 129 megawatts of capacity currently operational and further expansion underway, Mawson is positioning itself as a competitive provider of environmentally conscious digital infrastructure solutions.
**Market Context and Technical Indicators**
The company’s stock has recently shown signs of broader sector pressure. Its last closing price stood at $4.46, significantly below its 200-day moving average of $11.09 and a distant cry from its 52-week high of $40. Trading volume has been notably low, with recent daily volumes around 151,245 shares, a stark contrast to the 20-day average of over 4.2 million shares. This low relative volume suggests a lack of significant investor interest or market momentum preceding this legal development.
Furthermore, market analysis indicates a challenging environment for industry peers. Companies such as LGHL and ZBAI have recently appeared on momentum scanners with downward price movements, averaging an approximate 8.3% decline without corresponding company-specific news. This suggests a potential bearish sentiment within the broader Finance/Capital Markets sector, which could be influencing investor perception of Mawson’s situation.
**Recent Company Developments and Historical Performance**
Mawson’s recent history has been characterized by a series of capital markets maneuvers, operational updates, and efforts to maintain Nasdaq listing compliance. A 1-for-20 reverse stock split, implemented in conjunction with at-the-market equity issuances, was a strategic move aimed at regaining compliance with Nasdaq’s minimum bid price requirements, a milestone achieved by December 22, 2025.
Operationally, the company has reported mixed monthly financial results. While its third-quarter 2025 financial results indicated a return to quarterly profitability, the company has continued to acknowledge going-concern risks in its disclosures. The current adversary complaint follows the November 4, 2025, dismissal of the involuntary bankruptcy petition, marking a continuation of the legal narrative previously disclosed in the company’s regulatory filings.
Earlier events this year include a positive reaction to Nasdaq compliance by December 22, 2025, following an earlier announcement of compliance with Nasdaq’s bid price and minimum value of publicly held shares listing rules. A presentation at the Emerging Growth Conference on December 9, 2025, discussing its growth strategy in bitcoin mining and AI, also generated positive sentiment. However, a November 25, 2025, monthly financial update revealed revenue declines, particularly in digital colocation and self-mining, leading to a negative sentiment. The reverse stock split announcement on November 19, 2025, also resulted in a significant negative price movement. Notably, a divergence between news tone and price movement occurred with its Q3 2025 earnings report on November 14, 2025, where positive earnings were accompanied by a price decline.
**Regulatory and Risk Landscape**
Mawson maintains an effective S-3 shelf registration statement filed on September 3, 2025. This filing enables the company to offer various securities, including common and preferred stock, debt instruments, warrants, and units. The accompanying prospectus highlights significant going-concern risks, ongoing Nasdaq listing concerns, and a reliance on at-the-market equity programs, underscoring that further equity or debt issuance remains a primary funding avenue for the company. The company also faces the risk of potential injunctive relief being sought in legal proceedings, which could necessitate specific actions or prohibitions impacting its operations.
**Forward-Looking Statements**
This press release contains forward-looking statements, as defined under the Private Securities Litigation Reform Act of 1995. These statements, which may include projections on listing matters, financing activities, operational plans, and legal proceedings, are based on current expectations and assumptions. However, they are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, but are not limited to, the evolving nature of digital infrastructure technologies, the company’s ability to continue as a going concern, its capacity to cure listing deficiencies and maintain Nasdaq compliance, the availability of its at-the-market program, and its ability to secure additional financing. Additional risks encompass challenges in securing reliable and cost-effective energy, operational and construction risks, reliance on key personnel, development of the AI and HPC markets, potential downturns in the digital asset industry, and regulatory and taxation uncertainties surrounding digital assets. Mawson undertakes no obligation to update these statements to reflect events or circumstances occurring after the date of this release, except as required by law.
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