MGT Capital Investments (MGTI) topped all stocks in June’s Stock Challenge Wednesday. The approximate $50 million market cap company is mining digital currencies. The tech company’s market came alive Wednesday, trading over 2 million shares to close at $1.38.
MGT Capital Bitcoin Miner and Cyber Security Force
MGT Capital Investments, a developer of cybersecurity technologies, is also mining Bitcoins and other cryptocurrencies.
According to the company,
“MGT is growing its capacity in mining Bitcoin and other cryptocurrencies. With 18.0 PH/s of computing power at the Company’s facilities in WA state, MGT ranks as one of the largest U.S. based Bitcoin miners.”
Read any financial blog or investment podcast and the topic of cryptocurrencies has been front and center. While, cryptos have been all the rage the past few years, digital currencies collapsed in recent sessions. Bloomberg noted in Bitcoin, Ether Lead Digital Currency Slide From Highs, the sell-off in the three most well-known cryptocurrencies:
“Ether, the virtual currency based on the ethereum blockchain, plunged 26 percent to $221.45, according to data compiled by Coindesk.com. And ripple, the third largest digital currency based on market cap, has dropped about 13 percent to around 26 cents, according to prices compiled by CoinMarketCap.com.
It would reason that MGT Capital would not benefit from these decreases, given the company develops software to mine Bitcoins. Without getting into the changing costs of production, like a traditional miner, when the price of ore drops, it becomes less profitable. The young tech company recently doubled down on its cryptocurrency mining business.
MGT Capital Investments to Purchase 60 Graphics processor-based Mining Computers
MGT Capital Investments announced an agreement with Bit5ive LLC on June 23rd to purchase up to 60 graphics processor-based mining computers. According to the company,
“These machines will utilize the highest quality GPU cards and Intel CPU’s with a design to divide the hash rate between Ethereum (ETH) and Ethereum Classic (ETC).”
Ethereum has been gaining market share on Bitcoin for weeks. Ether and ethereum are one in the same as ether is the virtual currency based on the ethereum blockchain. Ether’s market cap has gone from literally nothing a few years ago to $25 billion in recent days. Hence, it in some ways it can be seen as the fastest growing startup ever.
MGT Capital Investments, explains the rising star in its latest press release. The company plans to mine not only Ethereum, but other cryptos and to profit from them.
“The utility of smart contract technology has gained the interest of many on and off Wall Street in recent months. For example, Grayscale investments, led by Barry Silbert, announced plans to launch the “Classic Ether Trust,” with Bloomberg adding Grayscale’s Ethereum Classic ticker symbol and investment thesis to its research base. We also believe the formation of the Enterprise Ethereum Alliance — comprised of many of the world’s leading technology companies — will lead to new and exciting applications and verticals utilizing the Ethereum blockchain, all requiring more robust mining power in order to execute transactions.”
June Stock Challenge Update
Pinnacle member ‘funtime‘ selected MGT Capital Investments for June’s Stock Challenge and enjoyed a 11.56% return Wednesday. Rather, Sphere 3D jumped 15.36% Wednesday, keeping ‘mountaineer78‘ atop June’s Stock Challenge. His return is 53.36%; and, with only two days remaining, there is only one member who can catch him. Member ‘tjfeld‘ is sitting with a 50.04% return – within striking distance.