MGT Capital Investments Inc.
MGT Capital Investments Inc. (OTCMKTS:MGTI) rose 6.53% as bitcoin peeked above the $6000 for the first time. The cryptocurrency market continues to attract strong interest from investors, something that is having a ripple effect on bitcoin-focused stocks.
MGTI Stock Performance
Expectation for another split of bitcoin drove investors towards the digital currency as well as cryptocurrency stocks. Reports indicate that there may be another hard fork next month, which could result in the creation of a new cryptocurrency called bitcoin gold. Existing Bitcoin holders will get the new digital currency once it is issued.
MGT Capital Investments Inc. (OTCMKTS:MGTI) has started to spike higher after coming under pressure in recent trading sessions. The stock is up by more than 100% for the year as it continues to trade in an uptrend. However, a recent pullback from highs of $3.90 a share has seen the stock shed more than 40% in market value.
MGT Capital Investments Inc. (OTCMKTS:MGTI) has embarked on an expansion drive as it seeks to strengthen its bitcoin mining operations to take advantage of the hype around the cryptocurrency. Following recent shipment and set up of mining rigs, the company remains on track to generate $2 million in monthly revenue assuming continued growth in the price of bitcoin.
However, the company’s big plan is to expand its mining operations with 4,700 Bitman Technologies S9 Antimer rig. Such a feat could see the company generate annualized revenue of $25 million and EBITDA of $13 million.
“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,” said Mr. Stephen Schaeffer.
MGT Capital Investments Inc. (OTCMKTS:MGTI) remains confident that price resiliency of bitcoin and its growing expertise puts it in a strong position to choose partner needed to accelerate the next phase of growth. The company has already inked deals for the purchase of hardware for mining operations underscoring investors’ confidence in its operations and long-term prospects.
“The newly announced vertical of rig management, combined with the expected abundant free cash flow, positions the Company for even greater growth during 2018,” said Mr. Schaeffer.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
Don’t miss out! Stay informed on $MGTI and receive breaking news on other hot stocks by signing up for our free newsletter!