MGT Capital Investments Reports 33% Revenue Decline in Q3 2024

MGT Capital Investments, Inc. reported a decline in financial performance for the third quarter of 2024, with total revenue decreasing by 33% to $62,000 compared to $92,000 in the same period last year. The company's revenue from Bitcoin mining rose to $47,000 from $17,000, while hosting services revenue fell significantly from $75,000 to $15,000. For the nine months ending September 30, 2024, total revenue was $252,000, down 15% from $297,000 in the prior year, primarily due to a decrease in hosting customers.

Operating expenses for the third quarter decreased by 8% to $355,000, down from $384,000 in the previous year. This reduction was attributed to lower costs of revenue, which fell by 20% to $103,000, and a slight decrease in general and administrative expenses. For the nine-month period, operating expenses decreased by 19% to $1.1 million, compared to $1.4 million in 2023, driven by reduced electricity and depreciation costs, as well as lower legal and professional fees.

MGT Capital's balance sheet showed total assets of $798,000 as of September 30, 2024, down from $932,000 at the end of 2023. The company reported current liabilities of $2.99 million, a significant decrease from $9.77 million at the end of the previous fiscal year, largely due to a reduction in derivative liabilities. The company’s accumulated deficit improved to $426,067, down from $432,039, reflecting a net income of $404,000 for the quarter, compared to a net income of $701,000 in the same quarter of 2023.

Strategically, MGT has focused on optimizing its operations by leasing its mining facility to a single tenant, which has improved asset utilization and reduced exposure to Bitcoin price volatility. The company has also engaged in various financing activities, including the issuance of convertible notes and common stock, to support its operations. However, MGT faces ongoing challenges, including the need for additional capital to sustain operations and the impact of market volatility on its business. The company has expressed uncertainty regarding its ability to raise funds in the current economic climate, which could affect its operational viability in the coming year.