Highlights

• MKTY trades at a significant discount to every public cryptocurrency mining peer I have evaluated based on expected earnings growth and capacity.

• MKTY has best-in-class power costs and uses green energy.

• The recent announcement of a merger with Soluna Computing provides MKTY with a top-tier pipeline among public miners.

• There are profitable pivots MKTY can make away from mining if we enter another crypto winter.

Brief Commentary

Mechanical Technology (MKTY) was founded in 1961 as a developer and manufacturer of energy-efficient rotating machinery and instrumentation. In 2016, Brookstone Partners purchased ~39% of the common shares and Brookstone’s founder (Michael Toporek) subsequently assumed the role of CEO. In 2020, MKTY started EcoChain to develop a network of cryptocurrency mining operations powered 100% by renewable energy. In Aug-21, MKTY announced they were acquiring Soluna Computing to further augment their mining efforts.

MKTY is successfully building a “green” cryptocurrency mining business that is significantly undervalued based upon fundamental analysis and peer comparisons. MKTY growth will be visible as they continue releasing monthly site-level financials, providing an imminent catalyst for the market to recognize their growth.

MKTY has best-in-class power costs, a significantly lower valuation than any publicly traded mining peers, and was perfectly positioned for China unplugging. There are imminent catalysts – 50MW of capacity already secured and currently being brought online. MKTY is also an inspiring ESG story – enabling grid operators to add renewable power to their mix more effectively. All these factors make MKTY an asymmetric investment at the intersection of green energy, digital cryptocurrencies, and computing.

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