MGT Capital Investments Inc. (NYSEMKT:MGT) has struggled with various legal headwinds over the past few months. But the biggest setback has been the refusal by the NYSE MKT to approve for listing the 43.8 million shares required to be issued to complete the closing of the MGT and D-Vasive merger.
Not only has the NYSE action thrown a spanner in the works as far as the D-Vasive and Demonsaw transactions are concerned, it has also exposed MGT to numerous class action litigations.
MGT Capital Investments Inc. (NYSEMKT:MGT) shares jump on alternative proposal
An update yesterday by MGT sparked a rally in its shares, which closed at $2.50, up 39.66%. MGT said it was seeking a way to break the logjam by terminating the agreement with D-Vasive, and instead was planning to employ John McAfee and Eric Anderson as Chief Executive Officer and Chief Technology Officer respectively.
“In addition, the Company has reached a tentative agreement to exclusively license or acquire the Demonsaw source code and technology platform from D-Vasive,” the company said. “MGT believes that such a revised deal structure would be acceptable under NYSE MKT rules.”
The market obviously thinks this is a superior arrangement compared to the earlier arrangement that involved a huge issue of equity.
MGT Capital Investments Inc. (NYSEMKT:MGT) reinventing itself
MGT is seeking to reposition itself as a cybersecurity specialist by acquiring a bouquet of relevant technologies including D-Vasive, a provider of leading edge anti-spy software, and Demonsaw, a provider of a secure and anonymous file sharing software platform. In these efforts it is being guided by cyber security industry pioneer John McAfee.
It also recently announced its successful foray into large scale bitcoin mining. It said on September 21 that the operation had reached full phase one output with a larger than expected 2.6 PetaHash of processing power.
“The opportunity in the Bitcoin market is tremendous for MGT and is quickly providing a financial benefit for our shareholders. Since announcing the program in July, we have implemented and then ramped up this facility’s processing power to 2.6 PetaHash, which we believe makes MGT one of the top five Bitcoin miners in the U.S. We believe our overall goal of 10 PetaHash for this facility would put us in a leadership position in the global Bitcoin network,” stated John McAfee, Executive Chairman of MGT.
The company is currently mining over 90 Bitcoin per month with a value of $55,000.
At an opportune moment, the company will change its name to “John McAfee Global Technologies, Inc.”