Geometry Dash APK Hill Climb Racing APK
30.6 F
New York
Sunday, January 16, 2022

What to Make of the Breakout in MGT Capital Investments Inc. (OTCMKTS:MGTI)

Must read

Humbl Inc (OTCMKTS:TSNPD) Bounces Back and Lands On The Radar

Over the course of the past months, Humbl Inc (OTCMKTS:TSNPD) stock has managed to record massive gains and much of that has...

Alpine 4 Technologies Ltd (OTCMKTS:ALPP) Looks to Maintain Critical Momentum

Stocks that make massive gains over a reasonable period of time cannot hope to maintain them forever. At some point, a correction...

Green Thumb Industries Inc (OTCMKTS:GTBIF) Trades Near All-Time High: What Next?

After having been in the dumps for more than a year, the cannabis sector has managed to make a remarkable comeback. Investors...

VIVO Cannabis Inc (OTCMKTS:VVCIF) Stock Turns Volatile: Uptrend in Jeopardy

Anyone watching the market knows the cannabis sector has been booming again. Since the start of the year, the cannabis sector has...

It’s like the leaves dropping in October, Bitcoin catches a big move and shares of MGT Capital Investments Inc. (OTCMKTS:MGTI) spring back to life. The interesting dynamic here is that the company actually has some reasonable credibility in terms of coin mining potential, a fact that has been showing up in recent action in the stock, with shares rising as much as 150%, playing catch-up with the 250% rise in BTC prices.

According to its most recent release, MGTI is getting the band back together: “As previously reported, MGT has been waiting for better economic conditions to resume Bitcoin mining. The recent increase in the price of Bitcoin, without a material increase in the Difficulty Rate, has allowed the Company to resume its mining operations. We also entered into new or amended agreements with our host facilities to provide lower risk and more flexibility. Lastly, we decided to liquidate our first, but small, facility in Washington state to keep focus.”

MGT Capital Investments Inc. (OTCMKTS:MGTI), as noted, is a chronic beneficiary of enthusiasm coming into the Bitcoin space. The company officially engages in bitcoin mining.

According to its materials, in September 2016, MGT commenced its Bitcoin mining operations in the Wenatchee Valley area of central Washington. Throughout 2017 the company expanded its mining capacity with the purchase of additional miners and by entering into hosting and power agreements with Washington facilities owners.

The company also entered into management agreements with third party investors whereby the investors purchased the mining hardware, and the company will receive both a fee to manage the mining operations plus one-half of the net operating profit.

Due to the lack of availability of adequate electric power in Washington to support the company’s growth, MGTI decided to move its principal operations to northern Sweden at the end of 2017. During the first quarter of 2018, it took delivery of additional Bitcoin mining machines in Sweden and moved or sold most of its Bitcoin mining machines from Washington.

During the fourth quarter of 2018, the company commenced the move of its mining machines back to the U.S., to both Colorado and Ohio. The move was completed in early January 2019.

Find out when $MGTI reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

As noted above, MGTI just announced that it is resuming full bitcoin mining operations.

At this point, according to information from the company, MGT has 1,800 machines in Colorado Springs fired up and in action. The company notes that this is “pursuant to management agreements with our third-party investors”, which is a little difficult to interpret. But it also notes that it is generating 22 Ph/s in hash power.

In addition, the company also noted that it has an additional 400 company-owned miners currently racked and undergoing final stages of setup (suggesting a capacity expansion is in the works), and up to 300 more company-owned miners may be deployed in the same spot. It claims this will create a total of just over 30 Ph/s.

Traders will note 83% piled on for shareholders of the company during the trailing month. Furthermore, the name has registered increased average transaction volume recently, with the past month seeing 470% beyond its prior sustained average level.

All of that suggests the stock is still levered well to the price of Bitcoin. If the recent parabolic advance continues, expect more flows to find their way into MGTI.

Earning a current market cap value of $17.8M, MGTI has a bankroll ($362K) of cash on the books, which stands against about $1M in total current liabilities. MGTI is pulling in trailing 12-month revenues of $1.1M. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -97.1%. 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.

Latest article

iQSTEL Inc (OTCMKTS:IQST) Stock Makes a Big Move: Jumps 45% In a Week

In the past week, iQSTEL Inc (OTCMKTS: IQST) has emerged as a point of focus among a large number of investors and...

HUMBL Inc (OTCMKTS:HMBL) Stock Sees Big Bounce After Recent Slump

Since the beginning of 2021, HUMBL Inc (OTCMKTS:HMBL) had been one of the major movers from among penny stocks and had come into...

Dividend Stocks to Buy Now

A classic mistake that investors make when looking for dividend stocks is to just go for the biggest dividend yield. It makes...

88 Energy Ltd (OTCMKTS:EEENF) Stock Surges 40% But Can’t Hold Gains

The oil and gas company 88 Energy Ltd (OTCMKTS:EEENF) seems to have come back on to the radars of investors over the...

Net Savings Link Inc (OTCMKTS:NSAV) Stock is Getting Pummeled Again

Nowadays there are plenty of options for investors when it comes to making investments in the cryptocurrency and...
Şehirler arası nakliyat ve Şehirler arası taşımacılık konusunda en uygun fiyatlar ve en kaliteli hizmet.
ofis taşıma firmaları ve ofis taşıma konusunda en uygun fiyatlar ve en kaliteli hizmet.
SmsVerifyer.com Affordable best sms verification service