MGT Capital Investments Inc. (OTCMKTS:MGTI) has been blasting back higher as the Bitcoin space breaks out higher once again on the back of another strong push in the underlying market. The breakout in the broader space has been fueled by enthusiasm following the successful launch of Bitcoin futures on the CBOE last Sunday, and another contract set to open on the CME this coming Sunday.
However, the stock has its own strong company catalysts at work as well. Specifically, the company just announced that it has executed a new purchase order with Bitmain Technologies for an additional 500 S9 Antminer mining rigs, with shipment expected early in the first quarter of 2018.
MGT Capital Investments Inc. (OTCMKTS:MGTI) is in the process of acquiring a diverse portfolio of cybersecurity technologies and ramping up its Bitcoin mining operations in the state of Washington.
In short, MGTI focuses on acquiring and developing a portfolio of cybersecurity technologies. It intends to address various cyber threats through protection technologies for mobile and personal tech devices, as well as corporate networks.
MGTI also engages in bitcoin mining operation and recently ramped up its Ethereum mining operations as well. MGT Capital Investments, Inc. was founded in 1979 and is headquartered in Durham, North Carolina.
According to MGTI: “With facilities in WA state, MGT Capital Investments, Inc. (MGTI) 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. The Company is also developing a portfolio of cybersecurity 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 released 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.”
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According to the company’s latest release, “Following shipment and setup, and in conjunction with the Company’s current rigs in operation or in its possession, MGT’s Bitcoin mining operations will be comprised of over 5,000 Bitmain S9’s. These machines are expected to generate roughly 70 Ph/s of total hash power, and over $4.0 million in monthly revenue, assuming current Bitcoin pricing and Difficulty rates. Factoring in management fees, profit sharing, electricity, hosting and other direct operating costs, EBITDA from the Company’s Bitcoin mining operations is projected at over $2.0 million per month. The Company expects all rigs announced to date to be operating during the first quarter of 2018.”
“To meet the ongoing and projected ramp of our mining footprint, we are exploring cost-efficient locations for hosting and electricity on a global basis. In addition to the economics, we are focused on immediate availability of adequate power,” stated Stephen Schaeffer, President of the Company’s Crypto-Capital Strategies business unit.
Traders will note nearly 130% piled on for shareholders of the company during the trailing month. Market participants may want to pay attention to this stock. MGTI is a stock whose past is littered with sudden rips. In addition, the name has registered increased average transaction volume recently, with the past month seeing just under 200% beyond what we have been seeing over the larger time frame.
Currently trading at a market capitalization of $188.4M, MGTI has virtually no cash on the books, which must be weighed relative to virtually no total current liabilities. MGTI is pulling in trailing 12-month revenues of $1.5M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 871.7%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $MGTI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MGTI, either long or short, and we have not been compensated for this article.