Here Is Why MGT Capital Investments Inc. (OTCMKTS:MGTI) Remains A Strong 2017 Pick

MGT Capital Investments Inc. (OTCMKTS:MGTI) has been a real rollercoaster over the last 12 months but, during the latter six months of this period, the company has drawn a considerable degree of benefit from activity in the cryptocurrency space. Towards the end of last year, company CEO John McAfee reported that MGT was well on its way to establishing a strong and highly active bitcoin mining operation and – throughout 2017 – much of the company's investor relations activity was rooted in the promoting and updating of markets as to the progress of said mining operation.As regular readers will know, we tracked these advances pretty closely as and when they hit press. Why? Because one of our overarching themes this year has been rooted in the picking up of an exposure to the meteoric rise in the price of various cryptocurrencies (spearheaded by bitcoin) by way of a position in some of the companies that trade on the public markets and that have some tie to the sector as a whole.We've highlighted various plays in line with this theme, including BITCOIN SERVICES I COM USD0.001 (OTCMKTS:BTSC), BTCS Inc (OTCMKTS:BTCS) and Connexus Corp (OTCMKTS:CNXS).With each of these aforementioned, we have highlighted the fact that they are incredibly risky punts based on the seeming lack of operational activity that underlies their respective operations. In other words, we have made the argument that there might be some near-term reward on an exposure based on their potential to increase in price as speculative volume looks for exposure to bitcoin, but that’s about it.There are two stocks, however, that we have highlighted as both offering an exposure in line with the just mentioned thesis and – at the same time – bringing with them some degree of risk limitation based on operational activity.One is Bitcoin Investment Trust (OTCMKTS:GBTC) (check out why here).The other is MGT.Sure, McAfee has a colorful history and – for some – his involvement alone may be enough to dissuade them from an exposure to this company. Whatever his background, however, that he foresaw the dramatic rise in the price or bitcoin early this year and, more importantly, that he acted to take advantage of it before it happened, is undeniable. More recently, he did exactly the same with Ethereum as we outlined in this piece. When we published the piece that we just linked to, highlighting MGT's activity in the Ethereum space as a potentially rewarding diversification a cryptocurrency as a whole, the company went for $1.08 a share.A few days later, it was trading for $1.50 – close to 40% appreciation.So what do we think is in store for this on going forward?Put simply, much of the same. MGT has enough of an exposure to the cryptocurrency space to draw benefit from the appreciation in the price of bitcoin on its own and the latter looks set to continue appreciating towards and beyond the $3000 mark very near term. Combine this with a positive stream of news (if bitcoin does continue to appreciate, there is plenty of opportunity for McAfee to get some nicely constructed PR's out to markets that align the company's fortunes with that of the cryptocurrency) and we should see any collateral benefit compounded.Sure, this isn't the soundest of investment theses.This is – after all – a microcap stock that's going to need to raise capital going forward and that is competing in its sector with a large number of deep-pocketed incumbents. Heavy competition, dilution and an OTC listing might make this one an uncomfortable exposure for some. For those with a bit of risk tolerance, however, and for anybody looking to pick up an exposure to the bitcoin space without actually having to buy the underlying asset, we think this one might be a nice pick.Catch up on the whole MGTI story: read our previous coverage here.We will be updating our subscribers as soon as we know more. For the latest updates on MGTI, sign up below!Image courtesy of Greenflames09 via FlickrDisclosure: We have no position in MGTI or any of the other securities mentioned and have not been compensated for this article.