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Thursday, April 04, 2019 9:59:28 AM
https://www.prnewswire.com/news-releases/mgt-capital-provides-operating-update-300815860.html
The LOI, non-binding and subject to definitive agreement, is expected to result in profitable Bitcoin mining even at a sub-$2,000 price of Bitcoin, assuming a stable Difficulty Rate. The proposed arrangement envisions a management agreement whereby MGT provides up to 2,400 miners and Standard Power provides the hosting facility and infrastructure. After paying net electricity costs and onsite labor, the two companies will split the operating profit.
https://www.prnewswire.com/news-releases/mgt-capital-issues-yearend-letter-to-shareholders-300775857.html
As a recap, MGT has approximately 500 Bitmain S9 miners operating in central Washington state, 3,000 S9's currently being set up in Colorado, and 2,750 S'9s (including roughly 1,900 miners owned by third party investors) in Ohio being set up as well. We should note that the Company has suffered modest burnouts and other ordinary damage to 500 miners during the past several months. Compared to Sweden, we consider this installation process routine, and expect to be ready to mine within days. We would caution investors that 'ready to mine' needs to be qualified with the statement "economic to mine." Our new hosting relationships provide the company with the ability to pay for electricity (and mine) only when Bitcoin mining economics dictate.
As we write this letter, mining Bitcoin is roughly breakeven when considering the marginal costs of production. As we suspected (and frankly, hoped!) the Difficulty Rate has eased as participants exited the mining business over the past months, either by choice or otherwise. Presently, the network requires the computing power of 60 Bitmain S9 miners to mine one Bitcoin per month. On a per unit basis, the Company spends about $65 per miner per month, which is about equal to the current price of $4,000 per BTC. Management remains optimistic that interplay of Difficulty and Price will continue to move in our favor in the next several months. Furthermore, we believe as one of the 'last men standing,' MGT is positioned to be a consolidator in the mining industry.
Hero Worship Inhibits Free Thinking -- Don't Drink The Kool-Aid
. . . . . . . . and of course Reverse Splits SUCK!!!!!
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