MGT Capital Investments Inc. (OTCMKTS:MGTI) is trading up today on recent news that it bought a string of Ethereum mining computers. MGTI has traded as high as $1.33 today and has been on a slow climb since the end of May when it fell to .59 cents.
MGTI, carrying a $45.78 million market cap with 36.05 million shares outstanding, led by John McAfee, is entering the digital currency age on a deal with Bit5ive LLC. McAfee stated, “We are more convinced each day of the growth and value of digital currencies, and our Company is uniquely positioned to be a leading provider of processing power to relevant blockchains. The addition of Ethereum and Ethereum Classic to our crypto mining strategies is expected to be very profitable for us.”
MGT Capital Investments Inc. (OTCMKTS:MGTI) is one of the few companies that actually has bitcoin related operations and that profits directly from the rise in the price of the cryptocurrency. As per the latest release, the company has 400 Bitmain Antminer S9 units at work currently and is using the above noted raise proceeds to add a further 1000 units to this haul.
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Outside of bitcoin, Ethereum is the coin most likely, according to analysts, to play an primary role in the technology space across the next 10 years, and we think McAfee is looking to capitalize on this potential just as he did with bitcoin, by getting in at the (comparatively) early stage of the mining side of the equation and loading up on coins in anticipation of a forward revaluation – similar to that which we’ve seen from bitcoin.
McAfee caught media attention when the price of Bitcoin launched 400% higher in a short span of time, commenting in a Bloomberg piece: “We will definitely be profitable before the end of the year,” McAfee said in a phone interview Wednesday. “From bitcoin mining, we will get the experience and expertise to apply the blockchain to our security products.”
MGTI specializes in cyber security technologies to address a wide array of cyber threats through advanced protection technologies for mobile and personal tech devices, as well as corporate networks. McAfee is leading the company and drawing from his valuable experience having built one of the biggest antivirus companies to date and has now focused his attention on building innovative solutions to address the ever evolving threats in the cyber security space.
The first product to come out, the Sentinel, is due to be released at the end of this month. The Sentinel system creates honeypot traps for hackers and alerts the network administrator of any intrusions using state of the art algorithms designed to mitigate risk and minimize damage. It is the first product in a full suite designed to proactively protect networks, computers, users and data.
The final word: MGT Capital Investments Inc. (OTCMKTS:MGTI) has pivoted hard toward bitcoin operations and the company is led by a man that most find unpredictable. McAfee attracts and repels at the same time, but his focus on cryptocurrency and starting to stack coins is an interesting play. For continuing coverage on shares of $MGTI stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!