Mark my words, MGTI will see multifold gains in 2018 with $6 in January very likely.
MGTI is the largest U.S. bitcoin miner and they are rapidly expanding their mining operations.
MGTI will have 4700 mining rigs up and running Q1 2018 and generating over 60 Petahash and north of $2 million in monthly revenue - or 1.3MM EBITDA assuming recent prices and mining difficulty.
MGTI was producing about 100 bit coins per month earlier in the year and by Q1 2018 that number will be north of 350 coins per month.
MGTI touched $4.26 on 8/30 as bitcoin made it's first run towards $5000. Based on current BTC the price should be at least $5.
Current price is trading at $2 lower despite bitcoin being $1000 and as high as $1300 higher AND the "YUUGE" increase in mining operations.
Why?
Lots of outdated FUD. Past promises were never delivered, etc. Company funded itself through stock dilution in the past, etc.
Here's the thing though:
I view MGTI as a company that has tried multiple plays over the years and they finally hit gold, bitcoin gold with their mining operations. MGTI is the company that has been "faking it until we make it" but the thing is, by God they're actually making it!!
The blockchain is the future of money and accounting - our entire financial system is going to look dramatically different in 10-15 years. Buying MGTI at this level is like buying AMD when it was $2 a share.
When will MGTI take off? Timing is always the tricky bit, huh? It could be any day now but I think we'll see a rise to $6 by January. Q2 showed a modest increase in revenue over Q1 but what people seem to forget is they were mining only 100 bit coins in Q2 and in Q1 2018 that number will be 350+ coins.
Unfortunately that means we have to wait 7 months for Q1 2018 earnings but that will be the first quarter with full rig deployment. By then MGTI will be obvious and trading a few fold higher than it is currently.
Based on the wedge coming to a close next week, I think we'll see a gap UP to move closer with BTC's recent price gains.
Comment
⋅
An abrupt sell off Monday and this morning (down 9% yesterday; 7% today) has pushed us outside of the wedge. No direct cause/reason for the sell off. No news, PR, etc. Just short sellers and bears in general are controlling the stock price. But that's coming to an end, read below.
New support line of $1.92.
This is likely the bottom for the current short term. The previous dip down was to $1.77 on 9/14 before bouncing back to $3.05 on 10/2.
We want to see higher lows and higher highs to confirm the overall bull pattern that began in earnest in May 2017.
If $1.92 holds and bounces higher that's confirmation the overall upward trend remains in tact. So far this morning MGTI is bouncing around $1.92 and $2 on higher volume. (Higher volume Monday too).
The $2 level is a very good point to load up on more shares.
I think we'll see MGTI at $3-4 within the next 30 days and $5-6 by January 2018. Longer term I expect $12-15 by September 2018 but possibly sooner.
What's going on in the next 30 days and January?
Sentinel product ships Nov 1. We're anxiously awaiting pre-sales and sales numbers. Q3 earnings come out Nov 9th or 15th. (date, TBD). MGTI will have full deployment of 4700 rigs @ 60 peta hash by Q1 2018. They will mine 350+ bitcoins per month vs the 100 coins per month now. The bitcoin mining operation is and will continue to drive the stock price higher or lower.
MGTI didn't begin their serious expansion of bitcoin mining until half way through Q3. MGTI deployed 600 rigs in the middle of August. This additional deployment will be net positive but the rigs were only active for half the quarter.
I expect Q3 EPS to still be negative but less negative compared to Q2, which was less negative compared to Q1, etc. MGTI's EPS has been grinding higher for and we'll almost certainly see positive EPS by Q1 2015 and possibly even Q4 2017.
Why? A shipment of 2000 rigs is on the way and anticipated to be delivered by the end of Q4 and up and fully deployed for Q1 2018..
Under full deployment, MGTI have 60+ peta hash and will be mining 350+ bitcoins per month which translates to over 2Million per month. They're also mining ETH and Litecoin.
This latest deployment of 2000 rigs is investor owned but managed by MGTI. Pretty sweet deal for MGTI - they get 50% of the net profits plus 10% of the gross as their management fee. Investors fronted the full cost of the hardware and power. No cost for MGTI, only profit. Why can't I negotiate that kind of deal at work?? :)
Previously, MGTI funded large parts of its operations through share dilution. However, with their mining rigs coming online, this alone will fulfill all of their capital requirements making further/future share dilution unnecessary. Sentinel and the privacy phone aren't even needed to be profitable.
Bears are quick to point out the latest filing where MGTI seeks approval to increase authorized shares but they have done this every year. It is merely to keep an option open in the event of some dire catastrophe. Robert Ladd (CEO) has stated they have no intention of issuing more shares (causing share dilution) and the request for authorization is just to have it as an option if needed.
Bottom line; MGTI is operating in the black and has been the past few months but this isn't yet reflected on publicly available financials.
lmao back at it again? The stock is down .28 since your first report and barely hanging on to a green day today. Your reports are horrible imo. Wait 7 months? Do you know what the dilution will look like in 7 months!!! You cant be serious. $6 by January? Please stop making us laugh. Financials are due in NOV, will they delay them or will we get to see how horrible the situation really is? My price target on this stock is $1.49 by Nov 15.
jdharward
⋅
@FREESTOCKPICK, Looks like the age old battle of shorts vs longs. I get that you're a short and for what it's worth I saw your recent youtube video bashing MGTI and how this short is going to change your life and such.
Good for you, I truly hope it does! When one of us wins, we all win... because it's all one anyways..
Plus, from my long perspective, it's always interesting seeing the person on the other end of my trade. With that said, I disagree with your reasoning.
Btw, I would be very careful with running a "youtube stock advisor" platform... even if you call it a "show" and ask for "donations" instead of fees... come on now, FINRA/SEC don't take too kindly to unregistered reps representing themselves as financial advisers...
So here's the skinny - your negativity about MGTI is based on old history and does not take into account the massive play they're making with mining. 2018 is going to be huge for MGTI but it's not here yet - which is why you can still buy this at $2.25 or whatever. This is why we call it "speculation". I am speculating MGTI will go up and I have positioned myself to take advantage of it when it does.
If MGTI is already in the black showing profit mining 100 bitcoins/mo how much profit do you think they'll have mining 350+ coins per month with bitcoin at 10K and beyond?
Btw, are you ever going to post your short MGTI ticket?
jdharward
⋅
@FREESTOCKPICK, Looks like you're about to get squeezed :) BTC at 6k.