Blockchain penny stocks may not be the hot ticket this year, but it doesn’t mean that they don’t have the potential to bring great returns to investors.
Penny stocks have the greatest risk-reward of all stocks, as most penny stock companies are small but have the potential to rise. Some blockchain penny stocks took a beating this year after the cryptocurrency market fell.
Many blockchain stocks have been de-listed from exchanges and fell through the cracks, but there are still some that are holding on. Let’s take a closer look at one, and its latest company movements.
MGT Capital Investments, Inc (OTCQB:MGTI)
MGT Capital is based out of Durham, North Carolina. The company owns and operates cryptocurrency mining operations in central Washington state. As of March 2018, MGT owned 500 miners in Washington and 2,100 miners in Sweden.
Due to the fall of cryptocurrencies, MGT share prices have fallen substantially since the beginning of the year. Shares of MGT, hit an all-time high when Bitcoin (BTC) reached its peak back in mid-December 2017.
Last week, the blockchain penny stock announced that its President and CEO, Robert Ladd, is taking a leave of absence. The reason for the leave of absence is due to the US Securities and Exchange Commission (SEC) filing civil charges against Ladd.
The SEC claims that Ladd took part in violating the securities laws with certain microcap stocks.
Robert Holmes, Chairman of the Board of Directors of MGT Capital, said:
“Notwithstanding the board’s contention that the SEC claims are without merit, and that Rob will be vindicated, we are faced with the unfortunate immediate situation of perception overwhelming reality. As we previously stated, we wish to further emphasize that the Company was not named as a defendant in the SEC complaint. Further, we can assure stockholders that the operations and activities of the Company will continue under the leadership of Robert Lowrey, Chief Financial Officer and Stephen Schaeffer, Chief Operating Officer, with the full confidence of the board.”
MGTI Stock Movement
According to Yahoo Finance, MGTI shares are trading at $0.219, down -$0.0504 (-18.65%). It seems the latest news on the company has lost investors confidence even more.
Check back in for more blockchain penny stock news.
Featured Image: Depositphotos/© peshkov