MGT Capital Investments, Inc. announced that it has received $0.23 million in funding from Bucktown Capital, LLC
December 07, 2020
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MGT Capital Investments, Inc. (OTCPK:MGTI) announced a private placement of a convertible promissory note for gross proceeds of $230,000 on December 8, 2020. The company has signed securities purchase agreement with the investor. The transaction involves participation from Bucktown Capital, LLC. The note is convertible, at the option of the investor, into shares of common stock of the company at a conversion price equal to 70% of the lowest price for a share of common stock during the ten trading days immediately preceding the applicable conversion. The investor gave consideration of $200,000.00 for the note. The note bears interest at a rate of 8% per annum and will mature in twelve months. The company may prepay all or any portion of the outstanding balance of the note in cash at any time in an amount equal to 110% of the portion of the outstanding balance the company elects to prepay. The note carries an original issue discount of $25,000. In addition, company agrees to pay $5,000 to investor to cover investor’s legal fees, accounting costs, due diligence, monitoring and other transaction costs incurred in connection with the transaction. This Note is unsecured. The company will issue the securities pursuant to exemption provided under Regulation D.
MGT Capital Investments, Inc. is engaged in cryptocurrency activities with operations at an owned and managed Bitcoin mining facility in LaFayette, Georgia. The Companyâs business activities are comprised of self-mining operations, providing hosting services, and leasing space to third parties. The Company owned approximately 35 Antminer S19 Pro miners providing about 3 Ph/s in hash power for self-mining. It also offers third-party owners of miners a hosting service whereby the Company operates and maintains the miners for a fixed monthly fee. Its miners and those hosted for others are housed in a modified shipping container on the Companyâs owned property in Georgia. The Company owns the entire facility, including land and improvements, five 2500 kilovolt-amp (KVA) three-phase transformers, and three mining containers. The Company is exploring the 10 MW expansion potential at its property as well as investigating other sites to develop Bitcoin mining facilities.