MGT Capital Investments, Inc. Improves Balance Sheet, Appoints New Directors to Board, and Positions For Growth

Company Removes $1.22 Million Secured Convertible Debt Overhang, Expands Board with Top-Tier Financial Leadership, and Reaffirms Active Corporate Status

MELBOURNE, FL, July 20, 2026 (GLOBE NEWSWIRE) -- MGT Capital Investments, Inc. (OTC: MGTI) (the “Company” or “MGT”) today announced the achievement of strategic corporate milestones intended to fundamentally optimize its capital structure, eliminate legacy debt liabilities, and materially elevate its corporate governance and operational framework.

Through completing a debt exchange transaction along with a concurrent board expansion, MGT has removed its primary secured debt overhang and added seasoned institutional leadership to its Board of Directors to guide the advancement of its corporate asset base.

Comprehensive Debt Extinguishment Restructures Capital Base

In a major milestone for the Company’s capital structure, MGT entered into a definitive Secured Convertible Promissory Note Exchange Agreement with its primary institutional lender, Project Nickel LLC. Under the agreement’s terms, the lender surrendered and canceled the outstanding Secured Convertible Promissory Note originally issued in September 2025 in the aggregate principal amount of $1,220,240.00.

In consideration for the extinguishment of all principal and accrued interest under the note, MGT issued 3,250,000 shares of its newly designated Series E Convertible Preferred Stock and 750,131,126 shares of restricted Common Stock. The Series E Preferred Stock incorporates a strict 9.9% beneficial ownership blocker to protect the integrity of the Company's equity float.

This transaction allows MGT to operate with a cleaner, highly optimized balance sheet, free of compounding senior interest obligations.

Active Status and Strategic Asset Positioning

Management notes balance sheet optimization is a critical step in a broader corporate strategy to aggressively unlock the value of the Company's structural capabilities and corporate assets. MGT is actively focused on deploying its operational infrastructure, historical tax assets, and regulatory status toward the evaluation, acquisition, and management of high-growth business opportunities. By unburdening the balance sheet, MGT has cleared the path to maximize the utility of its corporate structure for upcoming transaction cycles.

Board Expansion Welcomes Institutional Financial Sophistication

Along with the financial restructuring, MGT has enhanced its leadership team, in line with public company governance best practices. Pursuant to the Company's corporate bylaws, MGT expanded its Board of Directors to three members, appointing two seasoned executives to the Board:

• David M. Garrity, CFA joins the Board as an Independent Director. Mr. Garrity brings over three decades of financial market, technology research, and corporate operating experience to MGT. A Chartered Financial Analyst (CFA) holding an MBA from Northwestern University’s Kellogg School of Management, Mr. Garrity’s experience includes prior service as the Chief Financial Officer for two separate SEC-reporting issuers (Interclick Inc. and Aspen Group, Inc.) and as Lead Independent Director and Audit Committee Chairman for BTCS, Inc.
• Jonathan M. Pfohl, MGT's active Interim Chief Executive Officer and Chief Financial Officer, joins the Board as an inside director, ensuring seamless continuity between management execution and board-level strategic oversight.

Mr. Garrity’s deep background in public company financial stewardship and capital markets valuation provides MGT with a rigorous foundation to drive subsequent strategic growth initiatives. In addition, to align his interests directly with MGT stockholders, Mr. Garrity concurrently participated in a separate private placement, purchasing 150,000,000 shares of restricted Common Stock for an aggregate cash consideration of $50,000.00.

Management Commentary

"Today marks a defining turning point in the structural trajectory of MGT Capital Investments," said Jonathan M. Pfohl, Interim CEO, CFO, and newly appointed Director of MGT. "By completely extinguishing our senior secured convertible debt overhang, we have stripped away compounding liabilities and delivered a significantly cleaner balance sheet to our shareholders.

MGT is a dynamic corporate vehicle, and we are actively positioned to utilize our corporate infrastructure and assets to capture meaningful future value. Expanding our board to bring in a financial leader of David Garrity's caliber underscores our commitment to rigorous financial oversight as we execute this blueprint. This structural reset is just the first phrase of our broader initiative. We are actively finalizing engagements with premier external advisory partners to accelerate the evaluation and execution of strategic transaction opportunities and look forward to sharing those developments with the market shortly."

For full technical and regulatory details regarding these transactions, stakeholders are encouraged to review the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on July 6, 2026.

About MGT Capital Investments, Inc.

MGT Capital Investments, Inc. (OTC: MGTI) is a corporate enterprise focused on the evaluation, advancement, and management of strategic business opportunities. The Company is dedicated to building long-term shareholder value through disciplined financial management and robust corporate governance.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Financial restructuring outcomes, governance changes, external advisory engagements, and future corporate performance are subject to a variety of market and operational factors. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Investor Relations Contact:
Jonathan M. Pfohl
Interim CEO & CFO, MGT Capital Investments, Inc.
Email: IR@mgtci.com

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.