It has been quite some time since our last mention of MGT Capital Investments, Inc. (OTCMKTS: MGTI) here on Street Register back in December, and in that span, a number of developments have occurred. Not least of which being the fortification of its crypto-mining capacity.
Bitcoin itself, which had been on a historic run to finish off 2017, culminating in a going rate of nearly $20,000 per BTC, saw renewed hardship to start 2018. In fact, it tumbled all the way back down below $7,000 briefly, but has recently found its way back above the $10K mark. That kind of volatility can make things challenging for a BTC-miner like MGTI, but the lower the price, the less the difficulty level of mining. To bolster its position, we’ve learned that the company has increased its number of operable mining rigs by a considerable percentage. That increased capacity should aid in at least partially offsetting the losses to bitcoin prices.
MGT Capital Investments, Inc. (OTCMKTS: MGTI) recently reported that it has executed a new purchase order with Bitmain Technologies for 1,000 S9 Antminer mining rigs, with shipment expected in March 2018. Also, the Company purchased and has received an additional 1,000 new S9 Antminers from a third party.
Following shipment and setup, and in conjunction with the Company’s current rigs in operation or undergoing deployment, MGT’s cryptocurrency mining operations will be comprised of over 7,000 Bitmain S9’s plus 50 GPU-based Ethereum miners. The Company expects all rigs announced to date to be operating by the end of the first quarter of 2018, at which point the machines are expected to generate nearly 100 Ph/s of total hash power.
“Notwithstanding the recent weakness in Bitcoin pricing, our operating efficiency and debt-free balance sheet allow MGT to grow and generate substantial free cash flow. This swift selloff will solidify our standing as a world-class leader in crypto mining. Moving forward, we are extremely confident of our further expansion opportunities,” stated Stephen Schaeffer, President of the Company’s Crypto-Capital Strategies business unit. (Source: PR Newswire)
In other recent news, MGTI announced the dismissal of the pending federal securities class action lawsuit alleging Company violations of the Securities Exchange Act of 1934. Yesterday, the Honorable Naomi Reice Buchwald, United States District Judge, Southern District of New York, entered an Order granting MGT’s Motion to Dismiss in its entirety. Further, this dismissal was granted with prejudice, meaning plaintiffs may not amend the complaint. In summary, the Court found no reason to rule that the Company or any of its Officers misled stockholders with material misrepresentation or omission relating to events in 2016.
“Notwithstanding the distraction, as well as the waste of time, effort and financial resources to defend this baseless litigation, it is reassuring that common-sense justice can still prevail,” stated Robert Ladd, President and Chief Executive Officer of MGT. (Source: PR Newswire)
While the future of Bitcoin is by no means unsteady, we’ve seen that incredible fluctuations in value can and will occur, but we like the volume approach that MGTI is taking in increasing its capacity for mining, and the dismissal of a resource draining lawsuit doesn’t hurt its cause either. We’ll stay up on any further developments with MGTI and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free smallcap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
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.