Close

MGTI Review

Company: MGT Capital Investments (OTCQB:MGTI)

Exposure: digital asset mining, bitcoin, privacy phone

Investment Case:

  • Cryptocurrency mining to generate revenue and digital asset portfolio
    • Hodling percentage of mined coins
    • Mining profits are not dependent upon price of asset
    • One of the largest miners in North America
  • Market Cap – 186.5 million (as of 1/29/18)
  • Closed 2017 in debt free position

Glicken

  • Privacy phone
  • Sentinel proactive anti-hacking product

Bullish Case Several factors determine the profitability of mining digital assets, not just the market price of the asset.  MGT provides digital asset exposure without direct dependence on an increasing market price.

Risk Factors

John McAfee’s departure

Stock price will remain volatile and correlated with bitcoin’s price until investors realize it is not just a “price of bitcoin” play.

Bottom Line

MGT mines digital assets to fund the continued development of their business.  At present, they also hold a portion of their mined coins giving investors exposure to the growth of an emerging asset class.

This is a position to research for investors that believe cryptocurrency mining will continue to be profitable. With additional upside potential if one of their current or future products gain market share as an anti-hacking and/or privacy play. They could also realize value from these projects if they choose to sell to prioritize their mining operations.

Legal Information and Disclosures

This review expresses the views of MPower365 as of (2/1/2018) and such views are subject to change without notice. MPower365 has no duty or obligation to update the information contained herein. Further, MPower365 makes no representation, and it should not be assumed, that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss.

This review is being made available for educational purposes only and should not be used for any other purpose. The information contained herein does not constitute and should not be construed as an offering of advisory services or an offer to sell or solicitation to buy any securities or related financial instruments in any jurisdiction. Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third-party sources.

MPower365 believes that the sources from which such information has been obtained are reliable; however, it cannot guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based.

This review, including the information contained herein, may not be copied, reproduced, republished, or posted in whole or in part, in any form without the prior written consent of MPower365

*Principals of MPower365 own stock (as of 2/1/2018) in MGT Capital Investments (MGTI)

 

Leave a Reply

Your email address will not be published. Required fields are marked *