Thanks to J I see that tiny crypto miner and vibration equipment maker Mechanical Technology Incorporated (MKTY) has sold a new issue of perpetual preferred stock. They have sold 720,000 shares.
The issue is cumulative, perpetual and likely non qualified because of lack of income–so it will probably be return of capital.
The company had about $3 million in revenue last quarter so do your due diligence on this one.
The coupon is 9.0%.
The issue is now trading under ticker MKTYP–last priced at $24.17.
The final prospectus can be seen here.
Just my humble opinion, but I wouldn’t touch this one with a 10 foot pole. I think gambling on penny stocks makes more sense than buying this one.
Irrespective of your particular risk tolerance, how reckless would buying this preferred really be? Any better or worse than say buying an ATP Oil & Gas preferred type stacked with billions of debt? Over the years there definitely has been worse out there.
For me personally, I would not want to put any significant amount of capital into this type of speculative investment and on top of that it’s also redundant. You can very easily beat an annualized ROR of 9% in this space by direct participation. There are brand new GPUs and even ASIC miners now to be had that will provide ROI in 6-9 months and from there it’s 100% profit.
Crypto is becoming a scarier place. Lots of regulation/taxation being discussed, China cracking down, environmental concerns growing….
Not a place I want to play through a preferred stock.
This is my wheelhouse; have to take a deep dive this weekend. It appears they are selling rewards/mined coin in real-time. Will have to see what their worst case scenario break even operating BTC price is along with realistic future hash rate prospects. Also no debt and going the “PSA” preferred path is interesting.
Name will change to Soluna Holdings after the acquisition.
Interesting & some promise, but a pass.
$87 million dollar market cap and 31 employees. Thanks but No Thanks.
Same here. I bit on the Ramaco one at 9% (pure greed maybe?) After ordering my coal miners hat for a half of my normal position. I would feel more comfortable adding to that one rather than purchasing this. At least Ramaco makes real money and I understand their business.
If you believe crypto prices will go higher, this will be fine. If it doesn’t or stays flat, then no. Its pretty binary.
Agreed, I’d rather invest in Crypto directly than a miner looking for a 9%+ YTC return. I think there are better parts of the Crypto ecosystem.