Mysterious stock surged 2,600% despite Bitcoin’s crash

BTC-USD +1.70% MIGI -39.34%

Crypto-related equities remained under heavy pressure as Bitcoin (BTC) extended its November slide.

Falling to a seven-month low near $85,065, down 2.2% over the past 24 hours, Bitcoin dragged the entire crypto-stock basket into deep red territory.

Yet one name briefly appeared to defy the sell-off: Mawson Infrastructure Group (NASDAQ: MIGI). On the surface, the company’s sudden spike looked like a rare bright spot, even a sign of renewed confidence.

But Mawson’s jump had nothing to do with investor enthusiasm.

The move was almost entirely mechanical.

Related: Judge sees ‘enough smoke’ in miner’s Chapter 11 case, orders $1.5M bond

What is Mawson Infrastructure?

Mawson Infrastructure is a U.S.-based digital-infrastructure operator that began as a Bitcoin mining firm and gradually expanded into broader compute services.

The company develops and runs high-efficiency data-center facilities designed for power-intensive blockchain and GPU workloads.

These sites provide electricity, cooling, networking and racking capacity for:

• Mawson’s own Bitcoin mining machines

• Third-party customers seeking compute or colocation

• Energy-dense AI and high-performance computing (HPC) clusters

In 2024, Mawson began repositioning itself toward the AI/HPC sector — a shift driven by rising demand for GPU-rich data-center space.

The new model diversifies the business away from Bitcoin’s price cycles and toward recurring revenue from compute leasing and infrastructure services.

More News:

• House considers insider trading ban as government shutdown comes to an end

• Billionaire twins–backed stock surges 100% after buying $50M ‘encrypted Bitcoin’

• MicroStrategy stock drops 60% from peak as mNAV approaches 1

Mawson’s escape from bankruptcy and delisting pressure

Mawson’s recent months were far more turbulent than its brief price spike suggested.

Earlier this year, a group of creditors filed an involuntary Chapter 11 bankruptcy petition against the company, alleging it was unable to meet certain obligations.

Involuntary bankruptcy petitions are serious, if the court accepts them, the company is immediately pushed into Chapter 11 without its consent.

Mawson fought the filing, arguing the petitioning creditors did not meet the legal requirements needed to force a debtor into bankruptcy. After reviewing the case, the U.S. Bankruptcy Court for the District of Delaware agreed.

On Oct. 21, the court dismissed the involuntary petition with prejudice, permanently blocking creditors from refiling the same case.

Mawson said the ruling confirmed the petition “had no merit,” and announced plans to seek attorneys’ fees, costs, and potential damages from the petitioning creditors.

Separately, the company was also facing Nasdaq delisting risk. On Nov. 3, it disclosed that the Nasdaq Hearing Panel had granted an extension:

• Until Dec. 4 to meet the $1 minimum bid price requirement

• Until Dec. 19 to meet the $35 million market-value requirement

These deadlines placed Mawson under pressure to raise its nominal share price before year-end.

On Nov. 14, the company reported third-quarter results:

• Revenue: $13.2 million (up 7% YoY from $12.3 million)

• Gross profit: $8.6 million (up 98% YoY)

The improvement in gross profit margin reflected increased efficiency across its mining and colocation operations. Still, analysts continued to flag the company’s financial position as strained.

More News:

• Massive whales drop millions on Bitcoin in aggressive dip buy

• Explained: Why is Bitcoin, XRP down today?

• Jim Cramer seemingly mocks Cathie Wood's $1M Bitcoin prediction

Why Mawson surged on Nov. 20

The apparent surge had nothing to do with business strength.

On Nov. 19, Mawson announced its Board of Directors had approved a 1-for-20 reverse stock split, effective at 5:00 p.m. ET on Nov. 20.

Under the split:

• Every 20 old shares became 1 new share

• No fractional shares were issued

• Holders were rounded up to the nearest whole share

• Ownership percentages remained essentially unchanged

These splits are typically performed for a single reason: Push the share price above Nasdaq’s $1 minimum-bid rule.

Related: $1 million bitcoin price 'on the table' after halving, mining CEO says

A day before the split, MIGI jumped as much as 30% to hit $7.77 — but this was anticipatory trading, not fundamental repricing.

Once the split took effect, the stock’s nominal price automatically multiplied, making it appear — on unadjusted charts — as though MIGI had surged thousands of percent.

Some platforms briefly showed increases as extreme as 2,600%, simply because the pre-split price ($0.50) was being compared directly to the post-split price ($10) without recalculation.

This “surge” was not a rally — it was accounting math.

Reality set in quickly.

By Nov. 21, MIGI had fallen more than 35%, trading around $4.67 in pre-market hours, as markets digested the split and refocused on the company’s financial health, which rating services continue to classify as weak.

Related: Bitcoin Miner HIVE Digital Acquires Bitfarms’ Site to Scale Operations by 400%

This story was originally reported by TheStreet on Nov 21, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.