Fri, Jun 27, 9:01 PM (16 days ago)
**MGT Capital Investments, Inc. (MGTI) - Q3 2024 Summary** **Financial Health & Performance:** - **Revenue:** $62K (Q3 2024) vs. $92K (Q3 2023), with Bitcoin mining revenue at $47K (Q3 2024) and hosting services at $15K (Q3 2024). - **Profit Margins:** Operating loss of $293K (Q3 2024) vs. $292K (Q3 2023), with non-operating income of $697K (Q3 2024) driven by derivative liabilities. - **Cash Flow:** Negative cash flow from operations at $472K (9M 2024) vs. $304K (9M 2023), with financing activities providing $464K (9M 2024). - **Earnings Changes:** Net income of $404K (Q3 2024) vs. $701K (Q3 2023), with significant gains from derivative liabilities. **Trends & Uncertainties:** - Revenue decline due to fewer hosting customers and lower Bitcoin prices. - Operating expenses decreased by 8% YoY, primarily due to reduced cost of revenue and G&A expenses. - Significant reliance on non-operating income from derivative liabilities, highlighting volatility and risk. - Going concern uncertainties due to accumulated deficit of $426K and no cash reserves as of Q3 2024. **Future Operations Impact:** - Continued dependence on Bitcoin mining and hosting services, with potential for revenue fluctuations based on cryptocurrency market conditions. - Need for additional capital to fund operations and repay outstanding debt, with substantial doubt about the ability to continue as a going concern. - Impact of inflation, regulatory developments, and market volatility on operations and financial condition. **Key Metrics:** - **Revenue (Q3 2024):** $62K (Bitcoin mining: $47K, Hosting: $15K) - **Operating Loss (Q3 2024):** $293K - **Net Income (Q3 2024):** $404K - **Cash Flow from Operations (9M 2024):** -$472K - **Cash Flow from Financing (9M 2024):** $464K - **Accumulated Deficit (Q3 2024):** $426K - **Cash Reserves (Q3 2024):** $0 **Conclusion:** MGTI's Q3 2024 financial performance reflects challenges in revenue generation and cash flow management, with significant reliance on non-operating income. The company faces substantial uncertainties and requires additional capital to sustain operations. Investors should monitor market conditions, regulatory developments, and the company's ability to secure financing.