MGT Capital Investments Inc.(OTCMKTS:MGTI) has seen a parabolic rise in recent months from well under $0.50 back in March of this year when Bitcoin was just $1000 to recent highs over $4 a share.
MGTI has transformed in recent months from illiquid to one of the top most traded stocks on the entire exchange attracting legions of shareholders who believe this one goes way higher.
MGT Capital Investments Inc.(OTCMKTS:MGTI) is developing a portfolio of cyber security technologies, with industry pioneer John McAfee as its visionary leader, creating advanced protection technologies for mobile and personal tech devices, as well as corporate networks.
The Company’s first product, Sentinel, an enterprise class network intrusion detector, is currently in beta testing, with commercial release anticipated by the end of September 2017. The Company also has entered into a joint venture with Nordic IT to develop and market a mobile phone with extensive privacy and anti-hacking features. The Privacy Phone has a tentative release date of February 2018.
MGTI is 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.
According to MGTI filings “MGTI is growing its capacity in mining bitcoin. The Company’s facility in WA state produces about 100 Bitcoins per month, ranking it as one of the largest U.S. based bitcoin miners. Further, MGT is in active discussions with potential financial partners to grow bitcoin output materially.”
Earlier this year MGTI announced it has closed on financing to allow the Company to materially ramp up its Bitcoin mining operations. The financing consists of a $2.4 million 10% convertible note (convertible at $1.05 per MGTI share) issued to a single institutional investor, UAHC Ventures LLC. UAHC Ventures is a subsidiary of publicly traded United American Healthcare Corp. UAHC, +3.57% The note is self-amortizing with a maximum repayment of $160,000 per month. In conjunction with the note, the Company also issued the investor approximately 862,000 warrants with an exercise price of $1.05 per MGTI share.
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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 $125 million market valuation MGTI has just $323k in the treasury and little revenues to date on the books. But MGTI is an exciting story developing in small caps with the genious John McAfee at the wheel the Company is focused on becoming one of the largest U.S. based bitcoin miners. Indeed according to their filings MGTI stated they are currently mining 100 BTC a month which at present values is around $480,000 USD. It is not wonder the pps of MGTI has exploded to recent highs over $4. 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.