Company: MGT Capital Investments (OTCQB:MGTI)
Exposure: digital asset mining, bitcoin, privacy phone
- 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
- 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.
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.
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
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*Principals of MPower365 own stock (as of 2/1/2018) in MGT Capital Investments (MGTI)