It was not a great day in the stock markets on Wednesday but amidst the entire bloodbath there were some stocks which managed to buck the trend spectacularly and one of those was the MGT Capital Investments Inc (OTCMKTS:MGTI) stock.
Trading Data
On Wednesday, MGTI stock surged 53.85% to $0.0100 with more than 23.73 million shares, compared to volume of 1.58 million shares. The stock moved within a range of $0.0072 – 0.0120 after opening trade at $0.0078.
BIT5IVE LLC and MGT Capital Announce Letter of Intent to Merge
The stock was in considerable focus yesterday following a key announcement and ended up with gains of as much as 54% amidst heavy interest. MGT Capital announced that it had inked a non-binding letter of intent with regards to a merger with the firm Bit5ive LLC. The deal is going to be completed by way of a stock as swap and MGT Capital noted that it is a transaction that is expected to be advantageous to shareholders of both companies.
However, a definitive agreement is yet to be executed and some other conditions, which include financial audit of Bit5ive and approval from its members, are yet to be met. Once those conditions are met, the deal is going to be completed.
MGT Capital also noted that such a merger is going to create a major competitor in the Bitcoin mining infrastructure space. It is going to be interesting to see if the MGT Capital stock can manage to hold on to its momentum today.
Key Quote
Robert Collazo would be appointed Chief Executive Officer of the new company. Mr. Collazo stated, “We are excited to be entering the public market and bringing our company’s vision to the world. Bit5ive has been growing rapidly, and we’re delighted about this next chapter which will help us continue to innovate and provide new opportunities for our investors, partners, and employees.”
Technical Data
MGTI stock is trading above the 50-Day and 200-Day Moving averages of $0.0066 and $0.0077 respectively. However, the stock is trading below the 20-Day moving average of $0.0135. The company has a total market capitalization of $436 million.
