MGTI and GBTC divergence from BTC price - but why? On sale??
GBTC and MGTI - two of the better bitcoin plays you can buy in an IRA or brokerage account. (I.e. if buying BTC directly isn't an option).
Are both of these bit coin plays currently undervalued and on SALE? MGTI in particular? MGTI has the potential to be over $10 next year and as high as $20-26K with BTC heading to $10K and beyond next year.
GBTC is a BTC backed investment trust backed by bitcoins in cold storage. NAV price is roughly .092xxx BTC per share - with the current premium around 30-35% vs 85-130% during the last BTC run to $5k.
MGTI is a company with three different plays but most notably their bitcoin mining operation. MGTI is currently N. America's largest miner and is setup to take advantage of cheap hydro-electricity. MGTI also has John McAfee on board all though his exact current role is somewhat unclear.
During the August BTC rally to $5k, MGTI rallied hard from $1.30 to $4.26 before crashing hard on 8/30 and eventually fell to lose 61% of it's value from the high of $4.26. GBTC did the same thing but a day later crashing nearly 50% from $1050 into the $500s as BTC retreated down to $3k following Dimon and China double FUD whammy.
You can see GBTC and MGTI have been pretty well correlated to BTC over the past year but something changed around Oct 1. Both of these stocks should be rallying hard core with BTC but they aren't. I thought perhaps investors were waiting for BTC to definitively break above the $5K resistance levels before coming in, given the way they both crashed sharply on the last BTC rally/pull back. Based on current BTC prices MGTI should be $5-6 and GBTC should be $1200-1400 but they're both about half that currently. Why?
One possible reason is what's driving BTC's current surge is the anticipation of "free money" via the two November hard forks scheduled. I.e. bitcoin cash type split.
Long term - both of these are good bets, especially MGTI. This stock has the potential for $5-6 by end of year based on mining and BTC/ETH rapid price appreciation.
MGTI is trippling down on their mining operations, having announced 2000 new miner rigs ordered 10/12.
seekingalpha.com/pr/...ocurrency-operations
"Following shipment and setup, and in conjunction with the Company's current rigs in operation and on firm order, MGT's Bitcoin mining operations are expected to generate over $2.0 million in monthly revenue, assuming recent pricing and difficulty rates. Factoring in management fees, profit sharing, electricity, hosting and other direct operating costs, EBITDA from the Company's Bitcoin mining operations is projected at $1.1 million per month. The Company expects all rigs announced to date to be operating during the first quarter of 2018.
Upon full deployment, the total number of mining machines will consist of approximately 4,700 Bitmain Technologies S9 Antimer rigs, generating potential hash power in excess of 60 Ph/s, solidifying MGT's claim of being the largest Bitcoin miner in the U.S. Projected annualized revenue of $25 million and EBITDA of $13 million will far exceed ongoing corporate capital requirements. All mining machines referred to in this press release are fully paid, with the exception of $4.6 million in total debt, all in the form of secured notes convertible into MGT common stock. No further capital is required from MGT or third-party investors in order to receive delivery from firm purchase orders with Bitmain. The Company has also acquired 50 graphics processor-based mining computers to mine Ethereum and Ethereum Classic."
Are both of these bit coin plays currently undervalued and on SALE? MGTI in particular? MGTI has the potential to be over $10 next year and as high as $20-26K with BTC heading to $10K and beyond next year.
GBTC is a BTC backed investment trust backed by bitcoins in cold storage. NAV price is roughly .092xxx BTC per share - with the current premium around 30-35% vs 85-130% during the last BTC run to $5k.
MGTI is a company with three different plays but most notably their bitcoin mining operation. MGTI is currently N. America's largest miner and is setup to take advantage of cheap hydro-electricity. MGTI also has John McAfee on board all though his exact current role is somewhat unclear.
During the August BTC rally to $5k, MGTI rallied hard from $1.30 to $4.26 before crashing hard on 8/30 and eventually fell to lose 61% of it's value from the high of $4.26. GBTC did the same thing but a day later crashing nearly 50% from $1050 into the $500s as BTC retreated down to $3k following Dimon and China double FUD whammy.
You can see GBTC and MGTI have been pretty well correlated to BTC over the past year but something changed around Oct 1. Both of these stocks should be rallying hard core with BTC but they aren't. I thought perhaps investors were waiting for BTC to definitively break above the $5K resistance levels before coming in, given the way they both crashed sharply on the last BTC rally/pull back. Based on current BTC prices MGTI should be $5-6 and GBTC should be $1200-1400 but they're both about half that currently. Why?
One possible reason is what's driving BTC's current surge is the anticipation of "free money" via the two November hard forks scheduled. I.e. bitcoin cash type split.
Long term - both of these are good bets, especially MGTI. This stock has the potential for $5-6 by end of year based on mining and BTC/ETH rapid price appreciation.
MGTI is trippling down on their mining operations, having announced 2000 new miner rigs ordered 10/12.
seekingalpha.com/pr/...ocurrency-operations
"Following shipment and setup, and in conjunction with the Company's current rigs in operation and on firm order, MGT's Bitcoin mining operations are expected to generate over $2.0 million in monthly revenue, assuming recent pricing and difficulty rates. Factoring in management fees, profit sharing, electricity, hosting and other direct operating costs, EBITDA from the Company's Bitcoin mining operations is projected at $1.1 million per month. The Company expects all rigs announced to date to be operating during the first quarter of 2018.
Upon full deployment, the total number of mining machines will consist of approximately 4,700 Bitmain Technologies S9 Antimer rigs, generating potential hash power in excess of 60 Ph/s, solidifying MGT's claim of being the largest Bitcoin miner in the U.S. Projected annualized revenue of $25 million and EBITDA of $13 million will far exceed ongoing corporate capital requirements. All mining machines referred to in this press release are fully paid, with the exception of $4.6 million in total debt, all in the form of secured notes convertible into MGT common stock. No further capital is required from MGT or third-party investors in order to receive delivery from firm purchase orders with Bitmain. The Company has also acquired 50 graphics processor-based mining computers to mine Ethereum and Ethereum Classic."
We're breaking out of a massive cup+handle formation and closing the gap with BTC.
Buy now at $2 and double to at least $4 in 1-3 weeks; probably this week. Seriously.