With Bitcoin continuing to present the best volatility among markets for traders, it’s good to keep close tabs on MGT Capital Investments Inc. (OTCMKTS:MGTI). The company just announced the filing of its quarterly report on Form 10-Q for the period ended March 31, 2018 with the Securities and Exchange Commission yesterday. According to the company’s release, the entire document can be viewed at the Company’s website or at www.sec.gov.
As far as number, “MGT reported revenues from bitcoin mining of $1.0 million for the first quarter of 2018 versus $312,000 in the same quarter of 2017 and compared to $1.8 million for the fourth quarter of 2017. As previously disclosed, the Company transitioned the vast majority of its mining operations to Sweden from Washington state beginning in late December 2017 and as a result had lower Bitcoin production. In addition, the sharp decline in the price of Bitcoin compounded the sequential decline in our revenue.”
MGT Capital Investments Inc. (OTCMKTS:MGTI) recently pivoted its operations entirely into the cryptocurrency space, ramping up its Bitcoin mining operations in the state of Washington and northern Sweden, and divested itself of its cybersecurity segment.
MGTI engages in bitcoin mining operation and recently also 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 company materials, “With facilities in northern Sweden and WA state, MGT Capital Investments, Inc. (OTCQB:MGTI) ranks as one of the largest U.S. based Bitcoin miners. Further, the Company continues to execute on an expansion model to grow its crypto assets materially. The Company also owns a portfolio of cyber security technologies, including the Company’s first product, Sentinel, an enterprise class network intrusion detector which was released in October 2017. The Company also owns the intellectual property associated with developing and marketing a mobile phone with extensive privacy and anti-hacking features. The cybersecurity products were guided by John McAfee, the Company’s former Chief Cybersecurity Visionary. MGT is presently evaluating various alternatives for its cybersecurity business.”
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As noted above, MGTI shares have been relatively depressed so far this year, but looking to carve out some key support. The company’s recent report may help in that affair as topline growth continues to trace along an optimistic curve. This is now basically a pure play for mining, which is going to give the stock rocket boosters any time the coin is in rally mode.
As noted in the release, “net loss was $4.5 million for the first quarter of 2018 compared to $5.9 million for the first quarter of 2017. Balance sheet metrics included cash of $461,000 as of March 31, 2018 with zero debt. In this year’s period, the Company invested approximately $8.0 million for additional Bitcoin miners and prepayments of electricity and hosting. On March 31, 2018, stockholders’ equity stood at $9.9 million.”
The chart shows -4% stripped out of share pricing for the name in the past month. What’s more, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed 58% over what the stock has registered over the longer term. With well under 40M shares on the float, the increase in volume could help spark some bounce action if the stock finds a supportive bid near recent prices following this report.
Now commanding a market cap of $89.5M, MGTI has a significant war chest ($9.6M) of cash on the books, which must be weighed relative to virtually no total current liabilities. MGTI is pulling in trailing 12-month revenues of $3.1M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 638.1%. We will update the story again soon as developments 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.