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Ninjas in Pyjamas
The SEC report on NIP provides a first assessment of a massive post-IPO restructuring. Between diversification, Bitcoin mining, and declining esports, where does NIP Group really stand?
A global architecture, complex risks
NIP Group is no longer a Swedish company in the legal sense, but a holding company registered in the Cayman Islands. It oversees operations across four continents, an architecture designed to achieve three clearly identified objectives: raise capital on the American market, consolidate geographically dispersed activities, and benefit from strategic tax incentives, particularly from Abu Dhabi.
This complexity exposes the company to multiple simultaneous legal regimes—American law, Chinese law, Emirati law, and Caymanian law—and significantly complicates its overall compliance. Each of the group's new activities is now strategically operated from these different jurisdictions.
Bitcoin mining already accounts for 16% of revenue
NIP launched into Bitcoin mining in September 2025, and in just three months of operation, the company generated 20.1 million dollars, representing 15.9% of its total revenue.
The activity is operated by Mining Ninjas US, which acquired mining machines financed through equity for approximately 20.3 million dollars. In the last quarter of 2025, NIP mined 151.4 BTC (approximately 11.6 million dollars) and has already pledged 189.93 BTC as collateral with its financing partners.
But mining is costly. Although NIP generated 20 million in Bitcoin revenues, its operating costs (machine depreciation and operational expenses) amount to 22.7 million. The activity will only become profitable if the Bitcoin price continues to rise.
Delisting looms
The NIPG stock price fell below the dollar mark for 32 consecutive days in early 2026. According to Nasdaq rules, a price below 1 dollar for too long triggers a delisting procedure.
Following a warning from regulators, NIP now has until September 21, 2026 to close above 1 dollar for ten days. If it fails, the stock would become far less liquid, and a reverse stock split could be considered as a recovery solution.
Esports silently collapses
In two years, revenues from Western esports teams have been divided by three, from 8.5 million in 2023 to 2.8 million in 2025. The cited causes are declining sponsorship revenues, expiring league contracts, and the evolving business model of esports itself. This is compounded by NIP's strategic reorientation toward other activities (talent management, events, mining).
2025 was marked by a major accounting event that measures this decline:
- Goodwill impairment: 122.5 million dollars
- Impairment of intangible assets (Ninjas in Pyjamas brand, league rights): 64.4 million dollars
- Total: approximately 187 million dollars
When the eStar merger closed in 2024, accountants valued these intangible assets on the balance sheet. Today, these same assets are worth far less. This is an accounting entry, not a real cash outflow. But it reflects a downward revision of the esports business's intrinsic value by the auditors themselves.
7 million in cash: a fragile cushion
Revenue surged 48% in 2025, jumping from 85.3 to 126.5 million dollars, driven by the mining launch and talent management growth.
Yet NIP has just 7 million dollars in cash reserves.
The 238 million dollar loss appears devastating at first glance, but the majority—approximately 187 million—corresponds to the accounting write-downs mentioned above. Once these non-cash charges are stripped out, the real cash loss drops to around 16 million. Better, perhaps, but hardly reassuring.
Fall 2026 will be decisive
NIP Group is gambling on a transformation turnaround on a tight timeline. The next three months will be critical: stabilize the stock above 1 dollar, make mining profitable, or at minimum keep the machine running.
The 2025 figures tell only a half-truth—the accountants' version. The real stakes will play out in the quarters ahead.
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