The last time we touched upon MGT Capital Investments, Inc. (OTCMKTS: MGTI) here on Street Register, we mentioned how we found it to be one of the most attractive cryptocurrency related companies, with one of the most ambitious Bitcoin mining operations, along with a well diversified portfolio of cyber security products.
Indeed, the company is set to be collecting revenue from more than 5,000 Bitcoin mining rigs by early 2018, which makes it one of the larger State-side operations, and could position it to grow its footprint exponentially. The company revealed that it is also in a good place financially heading into the New Year.
MGT Capital Investments, Inc. (OTCMKTS: MGTI) recently announced that it has executed a series of transactions that put the Company in a debt-free and cash-rich position as it exits 2017. Specifically, investors holding a total of $4.6 million in convertible notes have exchanged their debt for equity. In addition, the Company sold two million newly issued restricted shares for a total of $8.0 million, or $4.00 per share. The purchasers also received warrants to acquire an equal number of MGT shares at a price of $4.50 per share.
Robert Ladd, MGT’s Chief Executive Officer provided the following commentary on these events. “The returns in our bitcoin mining operations have never been better, and the board has decided to enter into agreements that position the Company for even greater expansion with less risk. This strengthened balance sheet, combined with the projected financial results of over 5,000 Bitmain S-9 mining rigs in operation during the first quarter of 2018, will provide MGT with tremendous flexibility going forward. These measures also move us more swiftly towards the goal of up-listing our common stock,” concluded Mr. Ladd. (Source: PR Newswire)
The company currently operates multiple mining locations with contracted, low-cost hydro-electric power in central Washington State, managed by Robert Collazo and the Bit5ive Team. The company’s significant commitment to an in-house mining facility also prepares it for the increased processing demands of the many new Blockchain technologies on the horizon. As the demand for transaction processing grows, MGTI intends to redirect its mining machines towards supporting other tasks on the Blockchain.
MGTI also maintains a strong working relationship with the senior management of Bitmain technologies, a top purveyor of Bitcoin mining hardware, and that strategic relationship affords the company accessibility to Bitmain’s newest and most technologically advanced hardware.
To supplement its crypto operations, MGTI also has a cybersecurity suite and secure cell phone as well, but for obvious reasons it’s currently the Bitcoin that we, and just about everyone else, is interested in. With the recent commencement of trading on Bitcoin futures, many people believed it could spell the end for the historic rise of BTC, but having recently hit new highs approaching the $20,000 mark, it’s safe to say that the train is still rolling. MGTI is one company that appears set and ready to ride this wave of the future as far as it will go, which is why we are very interested to continue tracking its story. The company is well-diversified into a number of attractive market spaces, and is routinely one of the top-trading stocks on the OTC. Keep it 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.