Sell MGT Capital Investments Before Bankruptcy – MGT Capital Investments, Inc. (OTCMKTS:MGTI)

MGT Capital Investments (OTCQB:MGTI) is a bitcoin miner, which is currently not mining because of the low price environment. The management has been fooling shareholders since long by changing businesses as it saw appealing. This behavior has cost investors more than $400 million in accumulated deficit. Revenues are decreasing, and there is no sign that they will grow in the near future. The stock, which trades at $0.08, is overvalued, and investors should avoid it.

Business

MGT Capital Investments, Inc. is a bitcoin and blockchain technologies company with offices in Durham, North Carolina. Although it was incorporated in Delaware in 2000, it has existed since 1977 under another name and concept.

MGTI has pursued business in industries such as internet technologies, medical imaging, cybersecurity, gaming, and blockchain. Before 2019, it had nine subsidiaries that were related to the already mentioned industries to some extent, which are all dissolved as of May 2019:

  • MGT Cybersecurity, Inc.

  • Medicsight, Inc.

  • MGT Sports, Inc.

  • MGT Studios, Inc.

  • MGT Interactive, LLC

  • MGT Gaming, Inc.

  • MGT Mining One, Inc.

  • MGT Mining Two, Inc.

  • MGT Sweden AB

MGTI sold its cybersecurity and gaming-related assets in 2018 due to the inability to advance them. It also ceased medical imaging and internet-related operations. Therefore, the only business segment remaining is crypto mining and other blockchain technologies (in the future). The company owns 5,750 miners (Bitmain S9 Antminer) located in Colorado and Ohio, but it is not operating them because of the low-price environment for Bitcoin. The management says that it will not operate them until bitcoin prices increase, but it fails to mention a certain price level. This probably means that there will be no revenues for most of 2019, which is not good news for investors.

According to its last 10-K Filing, MGTI’s strategy is “continue to execute expansion model to secure low cost power and grow its cryptocurrency assets”, and its…

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