MGT Capital Investments, Inc. (OTCQB: MGTI) is engaged as a Bitcoin mining company, which conducts operations in its facility located in LaFayette, Georgia. As of May 2022, MGT maintained ownership of 430 S17 Antminer Pro and 37 Antminer S19 Pro mining machines. Shares of the Bitcoin mining company are soaring 63% through afternoon trading on Wednesday, September 14, 2022. Over the past thirty days, MGT Capital Investments has seen average daily volume of 1.01 million shares. However, volume of 18.24 million shares or dollar volume of around $193,344, has already exchanged hands through afternoon trading.
Shares of MGT Capital Investments are surging after the company announced that it has entered into a non-binding letter of intent to merge with Bit5ive, LLC, in a stock swap transaction. The deal remains subject to execution of definitive agreements, completion of Bit5ive’s financial audit, as well as approval from Bit5ive’s stockholders.
Under the terms of the LOI, MGT Capital would issue between 70% and 80% of outstanding MGTI common stock to Bit5ive’s existing members. As a result, Bit5ive founder, Robert Collazo would be appointed as the new CEO of the combined entity.
Bit5ive was originally founded in 2015 by Robert Collazo and serves as an innovative Bitcoin and cryptocurrency mining company. The company is responsible for developing the popular Pod5ive mobile mining system, which can help miners quickly deploy mining operations. Bit5ive is also an official distributor of Bitmain PTY machines across Central and South America.
In conjunction with the LOI news, MGT also announces that it has issued $1.5 million in senior secured convertible notes and warrants, which is providing the company with net proceeds of $1,335,000.
“We are excited to be entering the public market and bringing our company’s vision to the world. Bit5ive has been growing rapidly, and we’re delighted about this next chapter which will help us continue to innovate and provide new opportunities for our investors, partners, and employees,” noted Bit5ive founder Mr. Collazo.
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