MGT Capital Investments Inc. (OTCMKTS: MGTI) Bit5ive Bitcoin Mining Reverse Merger

MGT Capital Investments Inc. (OTCMKTS: MGTI) is making an explosive rise in the rankings after the company announced via a press release and an 8k filing that Bit5ive LLC was reverse merging with the company. Bit5ive is an American technology company founded by Robert Collazo and a leader in cryptocurrency mining and infrastructure. Their modular data centers and state-of-the-art management systems allow institutional investors to get into cryptocurrency mining with a turnkey approach. Bit5ive is an official distributor in South and Central America of Bitmain PTY, the world’s leading producer of cryptocurrency mining hardware. Bit5ive currently has bitcoin mining operations in Colorado, Nebraska, Texas, Florida, Ohio, Washington, Georgia, South Carolina, and Sweden.

The SPACS reverse merger can be more explosive than the biotechnology one when the incoming company has real value but is undiscovered by investors and many RM stocks, which we have covered on this website, have gone from a few cents to dollars. Two recent RM runners that stand out are TSNP which has gone from pennies (where we first wrote about it) to several dollars per share. The other is HRBR which has gone from pennies (where we first talked about it) to $3+. According to the press release, the newly merged entity would become a significant player in Bitcoin mining infrastructure. MGTI is a clean business structure with only $1.2 million in liabilities that currently generates just under $100,000 per month in revenue from bitcoin mining and hosting services. Recently, management consolidated operations into a company-owned and operated facility in LaFayette, GA. Located next to a utility substation, the multi-acre property has access to approximately 20 megawatts (MW) of low-cost electricity. Currently, MGTI has 480 and 430 Antminer S17 Pro Bitcoin miners (“S17 miners”) respectively, plus 35 Antminer S19 Pro miners as of March 31, 2022.

MGT Capital Investments Inc. (OTCMKTS: MGTI) is a US-based bitcoin miner with operations in a Georgia-owned facility. Following a review of the company’s Bitcoin mining operations in early 2019, management consolidated operations into a company-owned and managed facility in LaFayette, Georgia. Located next to a utility substation, the multi-acre property has access to approximately 20 megawatts (MW) of low-cost electricity, approximately half of which is currently used by the Company. As of December 31, 2021 and March 31, 2022, the Company owned 480 and 430 Antminer S17 Pro Bitcoin miners (“S17 miners”), respectively, plus 35 Antminer S19 Pro miners as of March 31, 2022. All miners are located at the Georgia factory of the society. MGT purchased a total of 1,506 S17 miners in the latter part of 2019 directly from Bitmaintech Pte. ltd. From May 2020 to March 31, 2022, the Company sold a total of 923 of these miners.

Microcapdaily first reported on MGTI on September 1, 2017 stating at the time, “MGTI is the brainchild of security genius John McAfee of McAfee Antivirus who spent years in Belize then on the run and back to the States -United. Mr. McAfee cleverly realized that Bitcoin is the biggest and most disruptive technological advancement in years and he turned MGTI into one of the largest US-based Bitcoin miners with 2 facilities in Washington State already operational and plans to deploy a third. rig for early October 2017. Bitcoin is here to stay and if you don’t own it, you are missing out on the greatest investment opportunities of our lifetime. Sadly, John McAfee passed away last year, which was sad. At one point several years ago he was very unhappy with an article we wrote about him and since I wasn’t there that day I didn’t see his emails until the day after. By the time I called 2 days later and rectified the situation, he was so mad at Microcapdaily that he didn’t want to talk to me anymore. He posted some of our articles on his Twitter account.

On September 14, MGTI announced the execution of a non-binding letter of intent to merge with Bit5ive LLC in a share swap, according to MGT, which will benefit shareholders of both companies. Subject to the execution of a definitive agreement and certain closing conditions – including the completion of Bit5ive’s financial audit and Bit5ive member approval – the transaction will create a strong competitor in the design and l operating infrastructure used in the Bitcoin mining industry. The combined entity would become a significant player in bitcoin mining infrastructure.

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MGTI

Bit5ive is an American technology company founded by Robert Collazo and a leader in the field of cryptocurrency mining and infrastructure. Their modular data centers and state-of-the-art management systems allow institutional investors to get into cryptocurrency mining with a turnkey approach. Bit5ive has been at the forefront of cryptocurrency mining; design and deployment of data centers. Their proprietary Pod5ive system allows them to quickly and easily deploy modular data centers optimized for mining Bitcoin and other cryptocurrencies. This allows them to offer their customers the best possible performance and return on investment. Bit5ive is an official distributor in South and Central America of Bitmain PTY, the world’s leading producer of cryptocurrency mining hardware. Bit5ive currently has bitcoin mining operations in Colorado, Nebraska, Texas, Florida, Ohio, Washington, Georgia, South Carolina, and Sweden.

Under the proposed agreement, MGT would issue to existing members of Bit5ive a number of shares representing 70% to 80% of MGTI’s outstanding common stock on a pro forma basis after giving effect to the merger. Robert Collazo would be appointed Managing Director of the new company. Mr. Collazo said, “We are excited to enter the public market and bring our company’s vision to the world. Bit5ive has grown rapidly and we are excited about this next chapter which will help us continue to innovate and provide new opportunities for our investors, partners and employees.

MGT also announced today a private sale of $1.5 million principal amount of convertible senior secured notes and warrants, resulting in net proceeds to the company of $1,335,000. With the exception of the Note Transaction, which has been closed, there can be no assurance that the actions contemplated above, including a definitive merger agreement with Bit5ive, will be executed on these terms, if at all.

Bit5ive is an American technology company and leader in the field of cryptocurrency mining and infrastructure. Its modular data centers and state-of-the-art management systems allow institutional investors to get into cryptocurrency mining with a turnkey approach. Bit5ive is committed to developing innovative solutions that power blockchain networks while delivering competitive returns on investment. Bit5ive’s five pillars: infrastructure, technology, education, environment and lifestyle, underpin its mission to deliver sustainability at scale within this growing industry. Bit5ive believes these core values ​​will help it achieve its mission of making cryptocurrency accessible to everyone while protecting our planet’s resources.

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Currently trading at a market valuation of $4.4 million MGTI The OS is 683,770,903 shares. The company declares fully OTCQB with a decent balance sheet with only $1.2 million in total Passives currently generates just under $100,000 per month in revenue from its bitcoin mining operations and the hosting services it provides. On September 14, MGTI announced the execution of a non-binding letter of intent to merge with Bit5ive LLC whereby MGT would issue to existing members of Bit5ive a number of shares representing 70% to 80% of the common stock of MGTI outstanding on a pro forma basis. after giving effect to the merger. Recently, MGT management consolidated its operations into a company-owned and operated facility in LaFayette, GA. Located next to a utility substation, the multi-acre property has access to approximately 20 megawatts (MW) of low-cost electricity. Currently MGTI has 480 and 430 Antminer S17 Pro Bitcoin miners (“S17 miners”), respectively, plus 35 Antminer S19 Pro miners as of March 31, 2022. Bit5ive currently has bitcoin mining operations in Colorado, Nebraska, Texas, Florida, Ohio, Washington, Georgia, South Carolina, and Sweden. The newly merged entity would become a significant player in Bitcoin mining infrastructure. We’ll update MGTI when more details emerge, so make sure you’re subscribed to Microcapdaily.

Disclosure: We do not hold any position in MGTI, long or short, and we have not been compensated for this article.

Valerie J. Wallis