MGT Capital Investments Inc. (NYSEMKT:MGT) Reports on Bitcoin Mining Operations

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MGT Capital Investments Inc. (NYSEMKT:MGT) shares were down 14.77% to $1.50 on Friday and were flat in after-hours trading. Share prices have been trading in a 52-week range of $0.15 to $0.58. The company has a market cap of $33.06 million at 25.86 million shares outstanding.

MGT Capital Investments is  engaged in the business of acquiring, developing and monetizing assets in the online and mobile gaming space, as well as the social casino industry. It operates in two segments: Gaming and Intellectual Property. Its gaming portfolio includes a social casino platform Slot Champ and minority stakes in the skill-based gaming platform MGT Play and fantasy sports operator DraftDay Gaming Group.

A few months back, MGT Capital Investments invested in the bitcoin mining industry and has reported updates on Phase One.  So far, the company has been able to mine 90 bitcoin at $611 each, which means that it has over $50,000 in bitcoin mining revenue.

The company plans on continuing its bitcoin mining operations and is starting Phase Two in which it hopes to reach 5 PetaHash of mining power by the end of Q4 2016.

At our current output, we believe MGT is one of the top five Bitcoin miners in the U.S., and we believe our first quarter 2017 goal of 10 PetaHash for this facility would place MGT in a leadership position in the global Bitcoin network,” said John McAfee, CEO of MGT Capital Investments. “I cannot emphasize enough how an operation of this scale provides us with a key competitive advantage for developing security and privacy applications and platforms using the Blockchain,”

Keep in mind, however, that the profitability of these mining operations for MGT Capital Investments is very much tied to bitcoin price, which sits close to $615 as of this writing. The company is using a massive amount of hardware but is keeping their low-cost power strategy to trim operational costs.

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