MGT Capital Investments, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>MGT Capital Investments, Inc. filed its 2023 10-K, detailing financial performance and business operations including Bitcoin mining and hosting services.</b>

AI Summary

MGT CAPITAL INVESTMENTS, INC. (MGTI) filed a Annual Report (10-K) with the SEC on April 16, 2024. MGT Capital Investments, Inc. filed its annual report on Form 10-K for the fiscal year ended December 31, 2023. The company operates in the Finance Services sector, SIC code 6199. Key business segments include Bitcoin Mining and Hosting Services. The filing details financial data for the fiscal years 2023, 2022, and 2021. The company's principal executive offices are located at 150 Fayetteville Street, Suite 1110, Raleigh, NC 27601.

Why It Matters

For investors and stakeholders tracking MGT CAPITAL INVESTMENTS, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of MGT Capital's financial health, operational activities, and strategic direction for the fiscal year 2023, crucial for investors assessing the company's current standing and future prospects. The detailed financial statements and risk factors within the report are essential for understanding the company's exposure to market volatility, particularly in the cryptocurrency sector, and its ability to manage its debt and equity structure.

Risk Assessment

Risk Level: medium — MGT CAPITAL INVESTMENTS, INC. shows moderate risk based on this filing. The company's operations, particularly in Bitcoin mining and hosting services, are subject to significant volatility in cryptocurrency prices and regulatory changes, which could materially impact financial performance.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess the company's exposure to cryptocurrency market volatility and its operational sustainability.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-04-16 — Filing Date (FILED AS OF DATE)
• 6199 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• MGT CAPITAL INVESTMENTS, INC. (company) — COMPANY CONFORMED NAME
• 0001493152-24-014891 (filing) — ACCESSION NUMBER
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240416 (date) — FILED AS OF DATE
• RALEIGH (location) — CITY
• NC (location) — STATE
• MGTI (ticker) — Ticker Symbol

FAQ

Risk Factors

• Volatility in Cryptocurrency Markets [high — market]: The company's financial performance is highly dependent on the volatile prices of cryptocurrencies, particularly Bitcoin, which can lead to significant fluctuations in revenue and profitability.
• Dependence on Hosting Infrastructure [medium — operational]: The company relies on its hosting infrastructure for its Bitcoin mining operations, and any disruptions or failures in this infrastructure could negatively impact its ability to mine cryptocurrencies.
• Evolving Regulatory Landscape [medium — regulatory]: The cryptocurrency industry is subject to rapidly evolving regulations, and changes in these regulations could adversely affect the company's operations and business model.
• Liquidity and Capital Requirements [medium — financial]: The company may require additional capital to fund its operations and growth initiatives, and its ability to secure such capital may be limited by market conditions and its financial performance.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K filing.
• 2024-04-16: Filing Date — Date the 10-K report was officially submitted to the SEC.

Key Financial Figures

• $0.001 — ing 943,170,903 shares of common stock, $0.001 par value. MGT CAPITAL INVESTMENTS, I

Filing Documents

• form10-k.htm (10-K) — 1326KB
• ex10-18.htm (EX-10.18) — 25KB
• ex19-1.htm (EX-19.1) — 134KB
• ex31.htm (EX-31) — 12KB
• ex32.htm (EX-32) — 7KB
• ex19-1_001.jpg (GRAPHIC) — 1KB
• 0001493152-24-014891.txt (&nbsp;) — 6284KB
• mgti-20231231_pre.xml (EX-101.PRE) — 301KB
• mgti-20231231.xsd (EX-101.SCH) — 46KB
• mgti-20231231_cal.xml (EX-101.CAL) — 62KB
• mgti-20231231_def.xml (EX-101.DEF) — 214KB
• mgti-20231231_lab.xml (EX-101.LAB) — 380KB
• form10-k_htm.xml (XML) — 886KB

Risk Factors

Item 1A. Risk Factors 7

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 23

Cybersecurity

Item 1C. Cybersecurity 23

Properties

Item 2. Properties 23

Legal Proceedings

Item 3. Legal Proceedings 23

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 23 PART II 24

Market For Registrant's Common Equity, Related Stockholder Matters And Issuer's Purchases Of Equity Securities

Item 5. Market For Registrant's Common Equity, Related Stockholder Matters And Issuer's Purchases Of Equity Securities 24

Reserved

Item 6. Reserved 24

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosure About Market Risk

Item 7A. Quantitative and Qualitative Disclosure About Market Risk 31

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 31

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 31

Controls and Procedures

Item 9A. Controls and Procedures 31

Other Information

Item 9B. Other Information. 31

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 31 PART III 32

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 32

Executive Compensation

Item 11. Executive Compensation 33

Security Ownership of Certain Beneficial Owners and Management And Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management And Related Stockholder Matters 34

Certain Relationships and Related Transactions and Director Independence

Item 13. Certain Relationships and Related Transactions and Director Independence 35

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 36 PART IV 36

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules. 36

Form 10–K Summary

Item 16. Form 10–K Summary. 37

SIGNATURES

SIGNATURES 38 2 NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K and other written and oral statements made from time to time by us may contain forward-looking statements.

Forward-looking statements can be identified by the use of words such as "expects," "plans," "will,"

Forward-looking statements can be identified by the use of words such as "expects," "plans," "will," "forecasts," "projects," "intends," "estimates," and other words of similar meaning. One can identify them by the fact that they do not relate strictly to historical or current facts. These statements are likely to address our growth strategy, financial results and product and development programs. One must carefully consider any such statement and should understand that many factors could cause actual results to differ from our forward-looking statements. These factors may include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking These entitled "Risk Factors" and the risks set out below, any of which may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These risks include, by way of example and not in limitation: The uncertainty of profitability based upon our history of losses; Risks related to failure to obtain adequate financing on a timely basis and on acceptable terms to continue as going concern; and Other risks and uncertainties related to our business plan and business strategy. This list is not an exhaustive list of the factors that may affect any of our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on our forward-looking statements. Forward looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made, and we

forward-looking statements

forward-looking statements. As used in this annual report, the terms "we", "us", "our", "MGT" and the "Company" mean MGT Capital Investments, Inc. and its subsidiary, unless otherwise indicated. All dollar amounts set forth in this Annual Report as of and for the year ended December 31, 2023 on this Form 10–K are in thousands, except per–share amounts. 3 PART I Item 1. Business The Company is a Delaware corporation incorporated in 2000. MGT was originally incorporated in Utah in 1977. MGT's corporate office is in LaFayette, Georgia. Cryptocurrency Mining Business Industry Summary Bitcoin is a world–recognized cryptocurrency, which can be traded and converted into major fiat currencies on cryptocurrency exchanges. Cryptocurrencies are a medium of exchange that are transacted through and recorded on a decentralized distributed ledger system, called the "Blockchain." The Blockchain is built by a chronological addition of transactions, which are grouped into blocks. Each new block requires a mathematical problem to be solved before it can be confirmed and added to the Blockchain. The processing power used to solve these mathematical problems is measured by Hash Rate or Hashes per second ("H/s"). The complexity of these problems, also referred to as mining difficulty, increases with the network's growing Hash Rate. Bitcoin mining entails solving these complex mathematical problems using custom designed and programmed application-specific integrated circuit ("ASIC") computers (also referred to as "miners"). Bitcoin miners perform a vital function on the Bitcoin Blockchain network, by performing these calculations and adding transaction blocks to the Blockchain ledger. When a miner is successful in adding a block to the Blockchain, it is rewarded with a fixed number of Bitcoin; a miner can also be compensated by network transaction fees. Additional information about Bitcoin, Blockchain and cryptocurrencies can be found on publicly available educationa

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