MGT Capital Investments Inc. (OTCMKTS:MGTI) Takes A Step Back


MGT Capital Investments Inc. (OTCMKTS:MGTI) took a tumble Wednesday, and where it goes now will be a hot topic for discussion. The John McAfee company, who has actually left the CEO role for personal reasons, is showing volatility and there are some concerns. Specifically, it is not making money and not showing a dividend. MGTI’s appeal is that it is mining Bitcoin and Ethereum. However, to combat this fear the company is starting to provide some transparency.

The company recently issued a press release “intended to provide stockholders and the investment community with clear metrics regarding the present status of its cryptocurrency business.” Still, they added this caveat  that they “believe that all calculations and figures in this release are accurate, there can be no assurance, for example, that the historical correlation of difficulty rates and Bitcoin prices will hold in the future, nor can MGT assure that there will be no unforeseen issues in deploying its mining rigs.” This is a step in the right direction for many, but an investor with deep pockets may be better off buying bitcoins and Ethereum rather than MGTI.

MGT Capital Investments Inc. (OTCMKTS:MGTI) is in the process of acquiring a diverse portfolio of cyber security technologies and ramping up its Bitcoin mining operations in the state of Washington.

In short, MGTI focuses on acquiring and developing a portfolio of cybersecurity technologies. It intends to address various cyber threats through protection technologies for mobile and personal tech devices, as well as corporate networks.

MGTI also engages in bitcoin mining operation and recently ramped up its Ethereum mining operations as well. MGT Capital Investments, Inc. was founded in 1979 and is headquartered in Durham, North Carolina.

According to MGTI: “With facilities in WA state, MGT Capital Investments, Inc. (MGTI) ranks as one of the largest U.S. based Bitcoin miners. Further, the Company continues 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 visionary 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, is currently in beta testing, with commercial released anticipated by the end of September 2017. 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.”

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“We have been running at breakneck speed to achieve a substantial expansion of our Bitcoin mining footprint, and it’s time for a comprehensive summary,” stated Stephen Schaeffer, President of the Company’s Crypto-Capital Strategies business unit.

Mr. Schaeffer continued, “The effort required to reach our current level is not trivial. The ability to scale our operations requires coordinating the procurement of supply-constrained rigs, massive power requirements, substantial monitoring and controls, and the like. This success is far from a plug and play endeavor. We are very proud of the diligence of the entire MGT team.”

Holding a current market cap value of $67.68, MGTI is clearly a risk and just to throw this out there: the company is not all-in on digital currency. They have moved back and forth across different operations and I think any savvy investor should know the risk here. Furthermore, MGTI has mounting debt on the books. MGTI is pulling in trailing 12-month revenues of $1M. In addition, the company is seeing recent top-line growth, with sequential quarterly revenues growing at 24.4%. You can bet we will update this one again as new information comes into view. 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.