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Saturday, December 3, 2022

Stock Spotlight on MGT Capital Investments Inc.(OTCMKTS:MGTI)

MGT Capital Investments Inc.(OTCMKTS:MGTI) has been on the rise in recent days as the price of bitcoin continues to move north in a hurry. MGTI put out an update back on March 20 stating:

As reported several weeks ago, MGT completed the move of its Swedish operations to locations in Colorado and Ohio. At that time, we stated that when Bitcoin mining economics allow for profitable operation, we would re-commence mining.  All but 600 miners are currently racked and plugged in, and ready to start operation. Over this period, we have negotiated with our counterparties in both locations, and are pleased to announce that we have entered into a letter of intent with Standard Power of Ohio that is expected to vastly improve Bitcoin mining economics for MGT.

The LOI, non-binding and subject to definitive agreement, is expected to result in profitable Bitcoin mining even at a sub-$2,000 price of Bitcoin, assuming a stable Difficulty Rate. The proposed arrangement envisions a management agreement whereby MGT provides up to 2,400 miners and Standard Power provides the hosting facility and infrastructure. After paying net electricity costs and onsite labor, the two companies will split the operating profit.

MGTI was the brainchild of security whizz John McAfee of McAfee Antivirus who spent years in Belize than on the run and back in the US on top again. Mr. McAfee smartly realized that Bitcoin is the greatest and most disruptive technological advancement to come around in years and he has turned MGTI into one of the largest U.S. based Bitcoin miners with 2 facilities in Washington State already up and running and plans to deploy a third rig for early October 2017. Bitcoin is here to stay and if you dont own one you are missing out on the greatest investment opportunities of our lifetime.

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John Fife, CEO of UAHC Ventures, LLC. said at the time “Today we see Bitcoin and related-mining activities as a promising and fast-growing segment of the digital currency sector. Accordingly, we’ve identified MGT Capital Investments, Inc. as a leader in Bitcoin mining that is uniquely poised to capture market value as it expands its mining operations. As our commitment to making strategic investments through UAHC Ventures continues, we will further explore potential value-adding opportunities in the digital currency space, as they present themselves.”

On September 1 MGTI announced it has increased its purchase order with Bitmain Technologies for an additional 500 S9 Antminer Mining rigs, with shipment expected in mid fourth quarter 2017.

Following shipment and setup, and in conjunction with the Company’s current rigs in operation, MGT’s Bitcoin mining operations are expected to generate approximately $1.4 million in monthly revenue, assuming current pricing and difficulty rates. Factoring in electricity, hosting and other direct operating costs, EBITDA from the Company’s Bitcoin mining operations is projected at $1.0 million per month, prior to amortization of notes payable.

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Currently trading at a $14 million market valuation MGTI has just $96k in the treasury and reported $2 million in revenues in 2018. We will be updating on MGTI when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with MGTI.

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Disclosure: we hold no position in MGTI either long or short and we have not been compensated for this article.

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