MGT Capital Investments, Inc. (OTCQB: MGTI) is engaged as a Bitcoin mining and cyber security technology company. Shares of the diversified technology company rallied 15.25%, through trading on Thursday, October 12, 2017. Over the past month, MGT Capital Investments, Inc. has seen average daily volume of 2.02 million shares. However, volume of 1.85 million shares or dollar volume of $5.03 million has already exchanged hands on the day.
Shares of MGT Capital Investments, Inc. are gaining today after the company announced that it has purchased 2,000 additional Bitmain S9 Antminer mining rigs, which will help increase its Bitcoin mining capabilities. The company says they expect to receive the shipment by the end of the fourth quarter. Here is the full press release detailing of the additional Bitcoin mining rig purchases:
MGT Capital Investments, Inc. Press Release:
DURHAM, N.C., Oct. 12, 2017 /PRNewswire/ — MGT Capital Investments, Inc. (OTCQB: MGTI) announced today that it has executed a new purchase order with Bitmain Technologies for an additional 2,000 S9 Antminer mining rigs, with shipment expected by the end of fourth quarter 2017.
Funds for the large order were provided by institutional investors though agreements whereby MGT will manage the mining operations and receive a management fee as well as a share of the profits. This financial arrangement creates downside protection for the Company while still providing strong economic upside leverage. Stephen Schaeffer, President of MGT Crypto-Capital Strategies, stated, “We believe having a mix of fully-owned and investor-owned mining rigs will allow us to appreciably expand our crypto currency footprint with less equity dilution. We plan to shortly update the investment community and shareholders with further details.”
About MGT Capital Investments, Inc.
With facilities in WA state, MGT Capital Investments, Inc. (OTCQB: 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 was released in October 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.
This press release contains forward–looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward–looking statements.” All information set forth in this news release, except historical and factual information, represents forward–looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward–looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.