MGT Capital Investments Profile
MGT Capital Investments, Inc. (MGT) engages in cryptocurrency mining business.
MGT conducts cryptocurrency activities at a company-owned and managed Bitcoin mining facility in LaFayette, Georgia. Located adjacent to a utility substation, the several-acre property has access to about 20 megawatts (MW) of electrical power, half of which is presently utilized by the company. Business activities are consisted of self-mining operations and leasing space to third parties.
As of December 31, 2022 and March 31, 2023, the company owned 175 and 0 Antminer S17 Pro Bitcoin miners (S17 miners), respectively, plus 35 Antminer S19 Pro miners as of March 31, 2023. Due to unfavorable mining economics and various required repairs, no S17 miners were operating as of December 31, 2022, and the company exchanged all remaining S17 miners, as well as loose hash boards, power supplies, and controller boards for the more efficient S19 miners.
In addition to its self-mining operations, the company leases its owned space to other Bitcoin miners and also provides hosting services for owners of mining equipment. These measures improve utilization of the electrical infrastructure and better insulate the company against the volatility of Bitcoin mining.
MGT's miners are housed in a modified shipping container on the company's owned property in Georgia. The entire facility, including the land and improvements, five 2500 KVA 3-phase transformers, three mining containers, and miners, are owned by MGT. The company continues to explore ways to grow and maintain its operations, including but not limited to further potential equipment sales and raising capital to acquire the newest generation miners. The company is investigating other sites to develop into Bitcoin mining facilities in addition to expansion at its property.
Strategy
MGT's strategy is to oversee the operations in La Fayette, Georgia, which include self-mining, hosting others' miners for a fee, and leasing its physical space and electrical infrastructure.
Competition
The company competes with vertically integrated companies, such as Bitmain that engage in both the design and distribution of mining machines, as well as cryptocurrency mining. The company also competes with many other companies that are engaged in cryptocurrency mining, some of which have better access to mining hardware, lower operating expenses and lower cost of capital than MGT. These companies include Riot Blockchain, Inc. and Marathon Digital Holdings, Inc.
History
MGT Capital Investments, Inc. was incorporated in Utah in 1977.
