MGT Capital Investments, Inc. (OTCQB: MGTI) announced that it has received net proceeds of $3.7 million in debt financing as it moves to expand its Bitcoin mining operations. The debt is in the form of unsecured promissory notes which have no equity conversion rights or any stock warrants. Investors are encouraged to view full details provided in the Company’s Current Reports on Form 8-K as filed with the Securities and Exchange Commission at www.sec.gov.
Notwithstanding recent increases in the Bitcoin mining Difficulty Rate and the flat price action of Bitcoin itself, the Company believes the opportunity to make strategic large-scale purchases of BitmainAntminers, will provide MGT with very attractive cash on cash returns.
Stephen Schaeffer, President of MGT Crypto Strategies, explained, “Mining economics are subject to lean and flush periods, but over the long run, efficient and forward-thinking miners are rewarded. Being well-capitalized puts MGT in a commanding position while negotiating deals for hosting sites and hardware.”
Mr. Schaeffer further commented on the Company’s operations in northern Sweden. He stated, “We believe we have successfully overcome the many challenges this project has presented, in large part by MGT taking full operational control of the facility. Steady progress over the past several weeks has allowed us to turn on slightly more than 5,000 of the 6,300 S9’s located in the facility, and with the installation of some infrastructure improvements, we expect to be at full capacity by the end of next week. From a longer-term perspective, the problems and delays we endured due to issues with our Swedish contractor has allowed MGT to capture a big slice of additional profit from reduced power costs by directly dealing with the electric utility.”