Company Update (NYSE MKT:MGT): MGT Capital Investments Inc. and Bitmain Technologies Enter Into Letter of Intent
MGT Capital Investments Inc. (NYSEMKT:MGT) announced that it has signed a Letter of Intent with Bitmain Technologies Limited to form a joint venture that will focus on opportunities in the Bitcoin space in North America. Bitmain, headquartered in Beijing, is the preeminent worldwide leader in bitcoin hardware manufacturing and sales. In addition, Bitmain maintains one of the largest bitcoin mining pools through its Antpool Brand, as well as one of the largest cloud mining operations, offered by its Hashnest subsidiary.
The proposed joint venture between MGT and Bitmain will lead to the development of a state of the art Bitcoin mining pool. There will be many exciting features to the McAfee pool that will include advanced user interface as well as superior network protection and security maintained by MGT’s proprietary cybersecurity technologies. In addition, the companies plan to form a partnership to offer both institutional and individuals access to affordably priced mining hash from U.S. based facilities maintained by MGT. The Company anticipates that it will make announcements in the near future regarding the brand identity and economics of the cloud hashing ventures.
“Our partnership with an iconic name such as Bitmain Technologies is a major milestone for MGT as it executes it plan to become the major player in bitcoin throughout the western hemisphere,” John McAfee, Executive Chairman of MGT, commented. “This Partnership will go a long way towards making MGT a leader in the fastest growing segment of financial and industrial cybersecurity.” (Original Source)
On the ratings front, Ascendiant Capital analyst Edward Woo initiated coverage with a Buy rating on MGT and a price target of $6.00, in a report issued on August 15. The current price target represents a potential upside of 157.5% from where the stock is currently trading. According to TipRanks.com, Woo has a yearly average return of 14.6%, a 65% success rate, and is ranked #316 out of 4197 analysts.
MGT Capital Investments, Inc. engages in the business of acquiring, developing and monetizing assets in the online and mobile gaming space, as well as the casino industry. It operates through two reportable segments: Gaming and Intellectual Property.