Project Nickel LLC boosts stake in MGT Capital (MGTI) via note conversion
Rhea-AI Filing Summary
MGT Capital Investments insider activity centers on entities linked to Grady Kittrell. On 2026-06-30, Project Nickel LLC exchanged an 8% Secured Convertible Note with a principal balance of $1,220,240 and a December 31, 2027 maturity for equity.
The exchange delivered 3,250,000 shares of Series E Convertible Preferred Stock and 750,131,126 newly issued shares of Common Stock to Project Nickel LLC. Following the conversion, the note balance is reported as zero and Project Nickel LLC holds 3,250,000 Series E shares and 3,250,131,126 Common shares indirectly.
Separately, Grady Kittrell reports 200,000 Common shares held directly. Footnotes state that the securities are directly held by Project Nickel LLC and that DAXvest LLC and Mr. Kittrell, although reported as ten percent owners, disclaim beneficial ownership for Section 16 and other purposes.
Positive
- None.
Negative
- None.
Insider Trade Summary
Net Buyer: 753,381,126 shares
Net Buy
4 txns
Insider
Kittrell Grady, Project Nickel LLC, DAXvest LLC
Role
10% Owner | 10% Owner | 10% Owner
Bought
3,250,000 shs ($0.00)
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Conversion | 8% Secured Convertible Note due 12/31/27 | 0 | $0.00 | $0.00 |
| Conversion | Common Stock | 750,131,126 | $0.00 | $0.00 |
| Purchase | Series E Convertible Preferred Stock | 3,250,000 | $0.00 | $0.00 |
| holding | Common Stock | -- | -- | -- |
Holdings After Transaction:
8% Secured Convertible Note due 12/31/27 — 0 shares (Indirect, By Project Nickel LLC);
Common Stock — 3,250,131,126 shares (Indirect, By Project Nickel LLC);
Series E Convertible Preferred Stock — 3,250,000 shares (Indirect, By Project Nickel LLC);
Common Stock — 200,000 shares (Direct)
Footnotes (2)
- F1. Project Nickel LLC exchanged an 8% Secured Convertible Note with a principal balance of $1,220,240 and a December 31, 2027 maturity for (i) 3,250,000 shares of Series E Convertible Preferred Stock, and (ii) 750,131,126 newly issued shares of Common Stock.
- F2. These securities are directly held by Project Nickel LLC. DAXvest LLC is the managing member of Project Nickel LLC and Mr. Kittrell is the sole member and manager of DAXvest LLC. DAXvest LLC and Mr. Kittrell disclaim beneficial ownership of these securities, and this report shall not be deemed an admission that the reporting person is the beneficial owner of the securities for purposes of Section 16 or for any other purpose.
Key Figures
Note principal: $1,220,240
Series E shares received: 3,250,000 shares
New common shares issued: 750,131,126 shares
+3 more
6 metrics
Note principal
$1,220,240
Principal balance of 8% Secured Convertible Note exchanged
Series E shares received
3,250,000 shares
Series E Convertible Preferred issued to Project Nickel LLC
New common shares issued
750,131,126 shares
Newly issued MGT Capital Common shares from note exchange
Common shares after transaction
3,250,131,126 shares
Common Stock indirectly held by Project Nickel LLC after conversion
Direct common holding
200,000 shares
Common Stock held directly by Grady Kittrell after transactions
Note coupon and maturity
8% due December 31, 2027
Terms of Secured Convertible Note before exchange
Key Terms
8% Secured Convertible Note, Series E Convertible Preferred Stock, derivative security, beneficial ownership, +1 more
5 terms
8% Secured Convertible Note financial
"Project Nickel LLC exchanged an 8% Secured Convertible Note with a principal balance of $1,220,240 and a December 31, 2027 maturity"
Series E Convertible Preferred Stock financial
"for (i) 3,250,000 shares of Series E Convertible Preferred Stock, and (ii) 750,131,126 newly issued shares of Common Stock"
Series E convertible preferred stock is a class of investment shares issued in a later-stage financing round that behave like a hybrid between a safety-first claim and an option to become ordinary shares. Think of it as a VIP ticket that gives owners priority on payments and protections if things go wrong, but can be swapped for regular shares later—important to investors because it affects payout priority, potential dilution of ownership, voting power, and the company’s implied valuation.
derivative security financial
"transaction_action": "derivative conversion", "transaction_code_description": "Conversion of derivative security""
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
beneficial ownership financial
"DAXvest LLC and Mr. Kittrell disclaim beneficial ownership of these securities"
Beneficial ownership means the person or entity that actually enjoys the benefits of owning shares or other assets — such as receiving dividends, voting rights, or price gains — even if the legal title is held in another name. For investors it matters because knowing who truly controls and profits from a company reveals who can influence decisions, exposes potential conflicts of interest or hidden concentration of power, and affects transparency and risk in the stock.
Section 16 regulatory
"this report shall not be deemed an admission that the reporting person is the beneficial owner of the securities for purposes of Section 16"
Section 16 is a U.S. securities law rule that governs the trading and disclosure obligations of company insiders — typically officers, directors and large shareholders — to promote transparency and deter unfair profit-taking. It requires insiders to publicly report their stock trades and allows companies or the issuer to reclaim quick, short-term profits from certain insider trades, like a scoreboard and a refund policy that help investors see and limit possible insider advantage.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What did Project Nickel LLC do in the MGTI Form 4 filing?
Project Nickel LLC exchanged an 8% Secured Convertible Note for equity in MGT Capital. It received 3,250,000 Series E Convertible Preferred shares and 750,131,126 newly issued Common shares in place of the note’s $1,220,240 principal balance.
What were the terms of the 8% Secured Convertible Note in the MGTI filing?
The 8% Secured Convertible Note carried a principal balance of $1,220,240 and a maturity date of December 31, 2027. It was exchanged by Project Nickel LLC for 3,250,000 Series E Convertible Preferred shares and 750,131,126 newly issued MGT Capital Common shares.