We last mentioned MGT Capital Investments Inc. (OTCMKTS:MGTI) on Street Register in the spring, after bitcoin prices had begun to ramp up in a big way. It was May 24th, and a single bitcoin was worth just over $2000 USD. We explicitly stated that we believed that despite being down over 70% from last year, “the stock could start to rebound and recoup all of its losses”, and it turned out to be a valid intuition.
Shares of MGTI traded for as little as .6211 on that day, and haven’t seen a lower price since. Recently the stock hit new highs of 2.46 per share, which represents an overall increase of 296% over the lows we witnessed. Meanwhile, after a huge run into June, bitcoin prices consolidated a bit, but have been on a continual climb since the middle of July. They recently went on to hit new all-time highs in the $4400-range.
Last week MGT Capital Investments Inc. (OTCMKTS:MGTI) announced a corporate restructuring “designed to better compete and align resources in the fast-growing Cryptocurrency and Cybersecurity fields”. In conjunction with this reorganization, the Company has appointed Stephen Schaeffer as President of MGT Crypto-Capital Strategies. Under Mr. Schaeffer’s oversight, the Company has been operating an institutional bitcoin mining platform for the past year.
MGT is currently in the process of deploying additional hashing power at facilities in Washington state to bring production to 18.0 PH/s. In addition to his time with MGT, he traces his knowledge and experience to the early days of bitcoin. Mr. Schaeffer stated, “It is abundantly clear from our results that, efficiently executed, Bitcoin mining is very profitable. Having established MGT as a pre-eminent miner in North America, I look forward to leading our team as we execute our expansion to the next level across the full spectrum of crypto assets.”
John McAfee, currently MGT’s Executive Chairman and CEO, has also been appointed Chief Cybersecurity Visionary of MGT. In his new role, Mr. McAfee will continue to maximize his value to the Company as an industry thought leader and spokesman. Additionally, he will oversee the design and engineering of current and future cybersecurity platforms.
The board of directors has further determined that Robert Ladd, President of the Company, will reassume the role of Chief Executive Officer, and that H. Robert Holmes, a long time independent director, will reassume the position of Chairman of the Board. With Mr. McAfee’s direction, Mr. Ladd will also oversee the rollout of the Company’s Sentinel product as well as the continued development of its Privacy Phone. The Company has also applied with OTC Markets to uplist to its OTCQB tier. (Source: PR Newswire)
Even more recently we’ve learned that MGTI 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. (OTC: UAHC). (Source: PR Newswire)
So it would seem that the company’s plan of action to pursue bitcoin mining is in full swing, leaving us to wonder where the ceiling is on this stock that has already made a move of nearly 300% for us. We’e certainly going to stay on top of the story. Stay locked to Street Register for updates, and we’ll deliver important developments on MGTI as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in SING stock, short or long.