MGT Capital Investments Inc. (OTCMKTS:MGTI)
MGT Capital Investments Inc. (OTCMKTS:MGTI) rallied 1.59% after announcing the purchase of an additional 500 Bitcoin mining rigs from Bitman Technologies. Delivery of the new rigs is slated for the fourth quarter. The new order builds on a purchase order that the two companies signed last month for 1,000 S9 Antminer Mining rigs.
Shares of MGT Capital Investments Inc. (OTCMKTS:MGTI) have been on an uptrend since June. The bullish run has seen the stock soar from lows of $0.60 a share to highs of $3.90 a share. The rally has been fueled by the fact that the company is one of the key players in the Cryptocurrency business as Bitcoin continues to hit higher highs.
The stock is currently trading in a $2.81 – $3.43 trading range. Immediate resistance is at the $3.90 mark, above which the stock could rise to highs of $4.26 a share.
Bitcoin Mining Push
Renewed investor interest in MGT Capital Investments Inc. (OTCMKTS:MGTI) stock has been fueled by investments the company has made as it continues to strengthen its Bitcoin mining capabilities. The company’s Bitcoin mining operations are set to start generating monthly revenues of up to $1.1 million thanks to the acquisition of more than 1,500 Antminer mining rigs.
“I am excited to have our mining expansion moving at a rapid pace now. The revenue milestone that will be achieved by our mining programs is something we feel proud to achieve and look forward to surpassing in our future expansion,” said Stephen Schaeffer, President of MGT Crypto-Capital Strategies.
Funds for the acquisition of the additional 500 Bitcoin mining rigs came from the exercise of an option by an institutional investor, who purchased $500,000 worth of Convertible Note. UAHC Venture, a wholly owned subsidiary of United American Healthcare Corporation, has also invested $2 million to further expand the company’s mining operations.
In exchange for the $2 million financing, UAHC Ventures is to receive both Secured Convertible Promissory Notes and Warrants for the potential purchase of shares of MGT’s common stock. The wave of institutional financing according to MGT Capital Investments Inc. (OTCMKTS:MGTI) CEO is a further testament to the company’s position as a leading Bitcoin miner.
“We are currently constructing our third location in Washington State, and plan to deploy new mining rigs in this facility in early October 2017,” 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!
About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.