MGT Capital Investments Inc.(OTCMKTS:MGTI) has been moving up in a hurry as cryptocurrency markets have recovered across the board. The stock 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 $4.26 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.
MGTI s up as Bitcoins price has recovered in recent days. The cryptocurrency markets had collapsed in recent weeks as well as the price of Bitcoin after China announced a ban on on initial coin offerings (ICOS) in early September. Bitcoin hit a low of $2,981 after news on September 15 that bitcoin exchanges were shutting down following directives from government officials but has been rallying since then surpassing $4000 again yesterday according to CoinDesk’s Bitcoin Price Index.
MGT Capital Investments Inc.(OTCMKTS:MGTI) with facilities in WA state, MGT Capital Investments, Inc. ranks as one of the largest U.S. based Bitcoin miners. Further, the Company continues to focus on an expansion model to grow its crypto assets materially. MGTI started off 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. MGTI 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. Bitcoin is here to stay and if you dont own one you are missing out on one of 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.”
MGTI said in September 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.
In early September MGTI announced it has amended its existing equity line of credit with L2 Capital to allow MGT the flexibility to put to L2 up to 12.3 million shares of the Company’s common stock from time to time at the Company’s discretion. The Company intends to promptly file an S-1 Registration Statement with the U. S. Securities and Exchange Commission with full details of the Equity Purchase Agreement.
On September 18 MGTI announced the Company has been approved for up-listing and will commence trading effective today on the OTCQB Venture Market, operated by OTC Markets Group. OTCQB is designed for early-stage and developing U.S. and international companies. To be eligible, companies must be current in their reporting and undergo an annual verification and management certification process. OTCQB is considered by the SEC as an ‘established public market’ for determining price when registering securities for resale.
Robert Ladd, President and CEO of MGT stated, “We are pleased to be recognized with this move up to the OTCQB tier and will continue our high standards of transparency and financial reporting disclosure.”
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Currently trading at a $110 million market valuation MGTI has small but growing revenues reporting $700,000 from Bitcoin mining operations for the 6 months ended June 30, 2017. MGTI is an exciting story developing in small caps; with facilities in WA state, MGT Capital Investments, Inc. ranks as one of the largest U.S. based Bitcoin miners. Further, the Company continues to focus on an expansion model to grow its crypto assets materially. A breach of the $5000 mark and bitcoin could go parabolic again and take any bitcoin related stocks with it. 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.