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MGT Capital Investments Inc (OTCMKTS:MGTI) Looks Like It's Back On Track

MGT Capital Investments Inc (OTCMKTS:MGTI) Looks Like It's Back On Track
Written by
Chris Sandburg
Published on
November 9, 2016
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The debate as to what is happening at MGT Capital Investments Inc. (OTCMKTS:MGTI) rages on, with both sides of the party in seeming unbreakable disagreement. On one side, there are those that see the company as nothing more than a pump and dump headed up by McAfee, with nothing but press release driven hype to support its valuation. On the other side, there are supporters of the company that are willing to overlook (or at least turn a blind eye to) some of the reasons for concern, and take a position in what – if the company is to be believed – could be a game changing operation across the next half decade and beyond.Here at Insider Financial, we have spent quite a lot of time digging into what's going on behind the scenes, in an attempt to help clarify the situation for investors that are on the fence. While to some there appears to be cause for concern, to date, we have generally erred on the side of giving the company the benefit of the doubt. This, of course, became a little more difficult when it's exchange dropped it and the company decided not to appeal, but over the last couple of weeks, there has been mounting evidence that we were right to get behind McAfee and have some faith that – behind the scenes – there is development in progress; development that should lead to revenue generation near-term.Here's what we are basing this opinion on.First up, for those not familiar with MGT, let's quickly recap.The company was essentially a shell (publicized as an online gaming company, but with little to no operations) until earlier this year, when pretty much out of the blue it announced cyber security entrepreneur, John McAfee, would take the helm as CEO and pivot the operation into a cyber security operation. Since this announcement, there has basically been a steady stream of press releases announcing various developments, most of which haven’t been backed up with SEC filings (and this is a red flag for the bears), and nearly all of which relate to a cyber security tech that is in development, or close to completion, and not yet generating capital inflow.During September, and throughout last month, everything sort of blew up. The NYSE refused to authorize shares necessary for acquiring what was supposed to be the company's flagship technology (and – by proxy – the hiring of McAfee and a new CTO called Eijah), the company was delisted, the SEC subpoenaed it and some of its bigger name investors (read: Honig) and it looked as though the shorts were about to cash in on a bearish outlook.Over the last few weeks, however, things have started moving again.MGT has come out and said it's not appealing the listing because it will cost money, and it doesn’t thing the exchange will conduct the appeal fairly. We're not going to speculate on the latter suggestion, but the former sure makes sense, and given the circumstances surrounding the rapid and (seemingly opaque) delisting, the latter isn’t unreasonable.The delisting has also allowed for the shares to be issued to pick up the above mentioned technology – Dvasive – and it now looks like McAfee and Eijah will take up their respective roles near term.There's been plenty of social media activity suggesting activity behind the scenes:

Despite @NYSE claims to the contrary, Team $MGT remains hot at work on Sentinel's revolutionary capabilities. @demon_saw @SethWahle pic.twitter.com/iBrBsYZMjR

— Tiffany Madison (@tiffanymadison) October 20, 2016

MGT development team. Eijah and I are undergoing identity reassignment. pic.twitter.com/0yflftknn0

— John McAfee (@officialmcafee) October 28, 2016

#demonsaw 3D prototype case. Just $25 & you can #dropdropbox forever. Available @hackmiami #defcon @Dropbox @alexheid @mgtci #MGT @SethWahle pic.twitter.com/KkSLcVv0ur

— Eijah (@demon_saw) November 5, 2016

There's also been plenty of confirmation that an LOI issued at the end of last month relating to a partnership between bitcoin company Bitmain and MGT is gathering momentum, again flying in the face of short arguments that the LOI is nothing but a PR stunt. Both companies have confirmed plans, by way of social media and blog posting, and the partnership has been widelycovered in the specialist (but mainstream, in the space) bitcoin news and media outlets.The takeaway here is that the setbacks seem to be in the rear view, and that there is activity going on behind the listing trouble that is pushing the company towards revenue generation. What happens next, it's tough to say. If we had to bet on either McAfee or the shorts, however, the former wins every time.

"Eijah and I are here to win. Watch us now"John McAfee

We will be updating our subscribers as soon as we know more. For the latest updates on MGTI, sign up below!Disclosure: We have no position in MGTI and have not been compensated for this article.

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