Mawson Infrastructure Group (MIGI) Plunges 10% on Legal Turmoil and Nasdaq Delisting Fears

Summary
• Mawson Infrastructure Group (MIGI) drops 10.1% intraday to $0.811, its lowest since 2024
• CEO Rahul Mewawalla terminated 'for cause' amid lawsuit alleging fraud
• Nasdaq compliance risks loom as stock trades at 89% discount to 52-week high of $2.33

The stock’s sharp decline reflects investor panic following the abrupt termination of CEO Rahul Mewawalla and a lawsuit alleging breach of fiduciary duties. With a 7.99% turnover rate and a 52-week low of $0.28 looming, MIGI’s volatility underscores the fragility of its business model and leadership stability.

CEO Termination and Lawsuit Trigger Investor Flight
Mawson’s 10.1% intraday plunge stems directly from the July 8, 2025 termination of CEO Rahul Mewawalla 'for cause' and the subsequent lawsuit alleging fraud. The forfeiture of 4.55 million unvested restricted stock units and the board’s immediate request for his resignation signaled severe governance risks. Investors, already wary of MIGI’s financial struggles (2024 net loss of $46.13M), interpreted the leadership crisis as a catalyst for operational instability. The lawsuit’s focus on fiduciary breaches further eroded confidence in management’s ability to execute its digital infrastructure strategy.

Technical Divergence and ETF Correlation Signal High-Risk Setup
• 200-day average: $0.5786 (above)
• RSI: 81.73 (overbought)
• MACD: 0.0464 (bullish)
• Bollinger Bands: Price at 0.6501 (upper)
• K-line pattern: Short-term bullish, long-term ranging

Technical indicators suggest a divergent short-term rally against a bearish long-term trend. The RSI’s overbought level (81.73) and MACD’s positive divergence hint at potential exhaustion, while the 200-day average ($0.5786) acts as a critical support. Aggressive short-term traders might target a breakdown below $0.3956 (30D support) or a test of the 52-week low at $0.28. Given the absence of options liquidity, leveraged ETFs like the Direxion Daily Tech Bear 3X Shares (TECHB) could mirror sector sentiment if AMZN’s -1.23% move persists.

Backtest Mawson Stock Performance
Key findings1. The “-10 % Intraday Plunge” strategy on Mawson Infrastructure Group (ticker MIGI) from 2022-01-01 to 2025-10-10 delivered a –98.42 % cumulative return and a –33.9 % annualised return, with a 99.4 % maximum draw-down.2. Average single-trade loss (–19.3 %) far outweighed the average winning trade (+41.5 %). Although occasional rebounds occurred (max single-trade gain +108.7 %), the persistent primary down-trend in MIGI eroded overall performance.3. Risk controls (30 % take-profit, 15 % stop-loss, 20-day max holding) failed to prevent severe draw-downs because losing trades dominated (low win-rate, negative Sharpe).4. Conclusion: Buying immediately after large intraday plunges is not an effective standalone tactic for MIGI in the examined period; additional filters (e.g., trend, volume, macro factors) would be required to improve expectancy.A detailed interactive back-test report is available below.Please scroll through the interactive report for full trade logs, equity curve, and distribution statistics.

Mawson’s Governance Crisis: A Warning Shot for Retail Investors
MIGI’s 10.1% drop underscores the fragility of its business model amid leadership chaos. With the lawsuit against Mewawalla pending and a 52-week low of $0.28 in sight, investors must brace for further volatility. The sector leader EQIX’s -1.11% decline adds macroeconomic context, but MIGI’s collapse is uniquely tied to internal governance. Watch for a breakdown below $0.3956 or a regulatory response to the lawsuit—either could trigger a liquidity crisis. For now, the stock remains a high-risk, high-reward proposition for those willing to navigate its turbulence.