With incredible new highs over $5800 for a single bitcoin registering this week, the world’s most popular cryptocurrency has gone to a place that few thought it could, even as recently as just a year or two ago. When we last mentioned MGT Capital Investments, Inc. (OTCMKTS: MGTI) here on Street Register, the going rate was still under $5000.
It was at that time that the company announced it would be increasing its bitcoin mining rig capacity, by a significant margin, allowing for the ability to generate more than a million dollars worth of BTC each month on a total of more than a thousand machines. The latest PR to hit wires reveals that capacity on the cusp of being more than doubled yet again.
MGT Capital Investments, Inc. (OTCMKTS: MGTI) has now annoucednew purchase order with Bitmain Technologies for an additional 2,000 S9 Antminer mining rigs, with shipment expected by the end of fourth quarter 2017.
Funds for the large order were provided by institutional investors though agreements whereby MGT will manage the mining operations and receive a management fee as well as a share of the profits. This financial arrangement creates downside protection for the Company while still providing strong economic upside leverage.
Stephen Schaeffer, President of MGT Crypto-Capital Strategies, stated, “We believe having a mix of fully-owned and investor-owned mining rigs will allow us to appreciably expand our crypto currency footprint with less equity dilution. We plan to shortly update the investment community and shareholders with further details.” (Source: PR Newswire)
MGTI claims to rank as one of the largest U.S. based Bitcoin miners, and has communicated its intent to focus on an expansion model to grow its crypto assets materially. The Company is also developing a portfolio of cyber security technologies, with industry pioneer John McAfee as its 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 was released just this month. 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.
The ubiquity of smartphones, and the ever-rising threat of hacks, malware, spyware and more, make a product like this something we are very interested to see. In an age where more and more device offerings are specifically engineered to bleed its users dry of cash, one that is designed to keep its users safe and secure could be a breath of fresh air.
There’s also little doubt as to the fate of Bitcoin, at least in the near term. With every uptick, the practical value of MGTI’s mining capacity rises with it. According to our rough calculations based on the numbers communicated in prior news releases, the new purchase order puts the company’s potential monthly yield at nearly $3M USD in mined BTC.
We’re interested to follow the progress on MGTI’s mining operation build, and look out for more specific details coming from the company on the potential Bitcoin yields involved based on its newly obtained rigs. 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 MGTI stock, short or long.