UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 29, 2019
MGT Capital Investments, Inc.
Delaware | 001-32698 | 13-4148725 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
512 S. Mangum Street, Suite 408 Durham, NC |
27701 | (914) 630-7430 | ||
(Address of principal executive offices) |
(Zip Code) | (Registrant’s
telephone number, including area code) |
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
None
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 2.01. Completion of Acquisition or Disposition of Assets.
On October 29, 2019, MGT Capital Investments, Inc., a Delaware corporation (the “Company”), acquired 320 Antminer-S17 Pro-50TH/s Bitcoin miners from Bitmaintech Pte. Ltd., a Singapore private limited company (“Bitmaintech”), for a purchase price of approximately $700,000. The Company previously entered into a separate Purchase Agreement with Bitmaintech to purchase 1,100 Antminer-S17 Bitcoin miners as disclosed on the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 18, 2019.
Item 7.01. Regulation FD Disclosure.
On October 31, 2019, the Company issued a press release providing an update with respect to the Company’s acquisition of Antminer-S-17 Pro-50H/s Bitcoin miners. A copy of the press release is attached to this report as Exhibit 99.1.
The information contained in this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or incorporated by reference in any filing under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The furnishing of the information in this Current Report on Form 8-K is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information contained in this Current Report on Form 8-K constitutes material investor information that is not otherwise publicly available.
This Current Report on Form 8-K and exhibits may contain these types of statements, which are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and which involve risks, uncertainties and reflect the Registrant’s judgment as of the date of this Current Report on Form 8-K. Forward-looking statements may relate to, among other things, operating results and are indicated by words or phrases such as “expects,” “should,” “will,” and similar words or phrases. These statements are subject to inherent uncertainties and risks that could cause actual results to differ materially from those anticipated at the date of this Current Report on Form 8-K. The Company disclaims any obligation to, and will not, update any forward-looking statements to reflect events or circumstances after the date hereof. Investors are cautioned not to rely unduly on forward-looking statements when evaluating the information presented within.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number | Description | |
99.1. | Press Release, dated October 31, 2019 |
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MGT Capital Investments, Inc. | ||
Date: October 31, 2019 | By: | /s/ Robert S. Lowrey |
Name: | Robert S. Lowrey | |
Title: | Chief Financial Officer |
MGT Capital Provides Operating Update
Purchases 320 Additional Bitmain Bitcoin Miners
DURHAM, NC, October 31, 2019 /PRNewswire/ — MGT Capital Investments, Inc. (OTCQB: MGTI) today provided an operating update to investors.
On October 29, 2019, MGT purchased 320 Bitmain S17 Pro Antminers, with contractual shipment within 7 business days. The specific models purchased have a stated hash rate of 50 Th/s in normal mode and up to 62 Th/s when engaged in “turbo” mode. A container to house the miners will be delivered next week. Upon deployment, these machines will add up to 20 Ph/s to the Company’s LaFayette, Georgia facility.
This purchase of the S17 Pro’s is in addition to the previously announced purchase of 1,100 S17 Antminers with a stated hash rate of 53 Th/s per machine. The Company expects delivery of that batch prior to mid-December of this year. The containers to house these 1,100 miners include two Pod5ive containers and are expected onsite by the end of November 2019. Due to contractual provisions of this S17 order, MGT took advantage of a material price reduction, and chose to allocate some of that savings to the new order of S17 Pro’s.
As previously disclosed earlier this month, the Company began Bitcoin mining at its fully owned and operated facility in LaFayette using a newly designed container solution with company owned Bitmain S9 miners. All five transformers are set on concrete vaults, hooked up to underground high voltage electrical feeder lines from the nearby substation, and are ready to energize when the mining equipment is received. With Phase I of the site substantially completed, MGT currently has total load capacity from these five transformers of 12.5 MW.
Including some other modest equipment already purchased, MGT projects a total of 1,475 new generation Bitcoin miners to be in operation at year end 2019. The machines collectively are rated at a total of about 80 Ph/s, enough computational power to mine 45 Bitcoin per month at the current Difficulty Rate.* The total electrical load at this production level is estimated at slightly under 4.0 MW.
*Note: the Difficulty Rate (DR) of the Bitcoin network is a direct function of the capacity of the entire mining network. The DR changes roughly every two weeks and is widely available on Bitcoin data feeds and websites. Over time, the DR has, and is expected to, increase due to increased investment by network participants in more powerful and efficient mining hardware.
About MGT Capital Investments, Inc.
MGT Capital Investments, Inc. (OTCQB: MGTI) is a U.S.- based Bitcoin miner with operations at an owned facility in Georgia and two hosted facilities. The Company continues construction in Georgia to pursue expansion with low cost power.
For more information on the Company, please visit: https://mgtci.com
Forward–looking Statements
This press release contains forward–looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward–looking statements.” All information set forth in this news release, except historical and factual information, represents forward–looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the crypto mining industry; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow and execute its business strategy; volatility in the Bitcoin market; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward–looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange Commission. MGT Capital Investments, Inc. provides no assurance regarding the actual outcome of the events contemplated by any forward-looking statements included in this release.
Investor and Media Contact:
Robert Lowrey
Chief Financial Officer
rlowrey@mgtci.com
919-378-1788