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    <TD STYLE="width: 100%; border-top: windowtext 1pt solid; padding-top: 6pt; text-autospace: none; font-size: 10pt; font-weight: bold; text-align: center">UNITED STATES</TD></TR>
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    <TD STYLE="text-autospace: none; font-size: 10pt; font-weight: bold; text-align: center">SECURITIES AND EXCHANGE COMMISSION</TD></TR>
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    <TD STYLE="text-autospace: none; font-size: 10pt; font-weight: bold; text-align: center">Washington, DC&nbsp;20549</TD></TR>
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    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; font-size: 10pt; text-align: center">&nbsp;</TD></TR>
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    <TD STYLE="text-autospace: none; font-size: 10pt; text-align: center">&nbsp;</TD></TR>
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    <TD STYLE="text-autospace: none; font-size: 10pt; font-weight: bold; text-align: center">FORM 8-K</TD></TR>
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    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
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    <TD STYLE="text-autospace: none; font-size: 10pt; font-weight: bold; text-align: center">CURRENT REPORT</TD></TR>
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    <TD STYLE="text-autospace: none; font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
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    <TD STYLE="text-autospace: none; font-size: 10pt; font-weight: bold; text-align: center">PURSUANT TO SECTION 13 OR 15(D) OF THE</TD></TR>
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    <TD STYLE="text-autospace: none; font-size: 10pt; font-weight: bold; text-align: center">SECURITIES EXCHANGE ACT OF 1934</TD></TR>
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    <TD STYLE="text-autospace: none; font-size: 10pt; text-align: justify">&nbsp;</TD></TR>
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    <TD STYLE="text-autospace: none; font-size: 10pt; font-weight: bold; text-align: center">Date of report (Date of earliest event reported)&nbsp;May 30, 2012 (May 24, 2012)</TD></TR>
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    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; font-size: 10pt">&nbsp;</TD></TR>
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    <TD STYLE="text-autospace: none; font-size: 10pt">&nbsp;</TD></TR>
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    <TD STYLE="text-autospace: none; font-size: 10pt; text-align: center"><FONT STYLE="font-size: 14pt"><B>MGT Capital Investments,
    Inc</B>.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; font-size: 10pt; font-weight: bold; text-align: center">&nbsp;(Exact Name of Registrant as Specified in Its Charter)</TD></TR>
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    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; font-size: 10pt; font-weight: bold; text-align: center">&nbsp;</TD></TR>
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    <TD STYLE="width: 32%; text-autospace: none; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Delaware</TD>
    <TD STYLE="width: 2%; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 32%; text-autospace: none; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">0-26886</TD>
    <TD STYLE="width: 2%; text-autospace: none; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 32%; text-autospace: none; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">13-4148725</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: center">(State or Other Jurisdiction of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: center">(Commission File Number)</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: center">(IRS Employer Identification No.)</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>500 Mamaroneck Avenue &ndash; Suite 204</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Harrison, NY 10528</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B>(Address of principal executive
offices, including zip code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>914-630-7431</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Registrant&rsquo;s Telephone Number, Including
Area Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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    <TD STYLE="width: 100%; text-autospace: none; text-align: center">(Former Name or Former Address, if Changed Since Last Report)</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: windowtext 1pt solid; text-autospace: none; text-align: center">&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 29.7pt">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(<I> see</I> General Instruction A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Written communications pursuant to Rule 425 under the Securities
Act (17 CFR&nbsp;230.425)</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)</TD>
</TR></TABLE>
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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17&nbsp;CFR&nbsp;240.14d-2(b))</TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17&nbsp;CFR&nbsp;240.13e-4(c))</TD>
</TR></TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1.01 Entry into a Material Definitive Agreement</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">On
May 24, 2012, MGT Capital Investments, Inc. (the &ldquo;Company&rdquo;) entered into a securities purchase agreement (the
&ldquo;SPA&rdquo;) with the investor listed on the Schedule of Buyers attached</FONT> <FONT STYLE="font-size: 10pt">thereto
(&ldquo;Investor&rdquo;). The SPA provides for the purchase of an 18 month promissory note (the &ldquo;Note&rdquo;)
convertible into up to 1,166,666 shares of common stock of MGT (&ldquo;Common Stock&rdquo;) at a conversion price
of $3.00 per share and a warrant (the &ldquo;Warrant&rdquo;) to purchase up to 875,000 shares of Common Stock at an exercise
price of $3.00 per share for proceeds of $3,500,000 (the &ldquo;Transaction&rdquo;).&nbsp; Both the issuance of Common
Stock&nbsp;pursuant to conversion of the Note and the issuance of Common Stock pursuant to the exercise of the Warrant are
subject to NYSE MKT LLC approval and approval of the Company&rsquo;s stockholders if the issuances would result in over 20%
of the Company&rsquo;s outstanding stock being issued.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Note is convertible
at the option of the holder at a conversion price of $3.00 per share and the Company can require conversion into Company Common
Stock if the Weighted Average Price of the Common Stock equals or exceeds 200% of the conversion price for no less than twenty
(20) Trading Days during any thirty (30) consecutive Trading Day period occurring following the issuance date, subject to a 9.99%
beneficial ownership ceiling for Investor&rsquo;s ownership of Company Common Stock at any one time.&nbsp; The Note is also redeemable
by the Company from and after the seven (7) month anniversary of the issuance date, subject to certain equity conditions, in cash
at a price equal to the greater of (i) 125% of the Conversion Amount to be redeemed and (ii) the product of (A) the Conversion
Amount being redeemed multiplied by (B) the quotient determined by dividing (x) the greatest Closing Sale Price of the shares of
Common Stock during the period beginning on the date immediately preceding the date of notice of redemption and ending on the date
the redemption date, by (y) the lowest Conversion Price in effect during such period, as such terms are defined in the Note.&nbsp;
The Conversion Price of the Note is subject to adjustment in the case of combination or subdivision of stock or in the event of
the granting of any stock appreciation rights, phantom stock rights or other rights with equity features.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Warrant is exercisable
at the option of the holder at a $3.00 per share exercise price or, in certain circumstances, a cashless exercise and the Company
can require exercise if the Weighted Average Price of the Company&rsquo;s Common Stock equals or exceeds 250% of the exercise price
for no less than twenty (20) Trading Days during any thirty (30) consecutive Trading Day period occurring following the issuance
date, as such terms are defined in the Warrant.&nbsp; The Warrant exercise price is subject to adjustment in the case of combination
or subdivision of stock or in the event of the granting of any stock appreciation rights, phantom stock rights or other rights
with equity features.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Transaction will
require MGT and certain of its subsidiaries to provide security of all of its assets, MGT to pledge stock of its subsidiaries and
certain of MGT's affiliates to execute voting and lockup agreements.&nbsp; The proceeds of the Transaction will be used by the
Company for general working capital purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The description of
the SPA, the Note, and the Warrant contained in this Item 1.01 is a summary and is qualified in its entirety by reference to the
copies that are attached hereto as Exhibits 10.1, 10.2 and 10.3, which are each incorporated herein by reference.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 3.02 Unregistered Sales of Securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The information provided in Item 1.01 is
hereby incorporated by reference to this Item 3.02.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 7.01 Regulation FD Disclosures.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On May 29, 2012, the Company issued a press
release announcing the Transaction described above, which is attached hereto as Exhibit 99.1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01 Financial Statements and Exhibits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d) Exhibits</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 15%; border-bottom: windowtext 1pt solid; text-autospace: none; font-weight: bold">Exhibit No.</TD>
    <TD STYLE="width: 2%; text-autospace: none; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 83%; border-bottom: windowtext 1pt solid; text-autospace: none; font-weight: bold">Description</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10.1</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Securities Purchase Agreement, <FONT STYLE="color: black">dated May 24, 2012, by and between</FONT> MGT
Capital Investments, Inc. <FONT STYLE="color: black">and </FONT>the investor listed on the Schedule of Buyers attached thereto.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10.2</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Form of Senior Secured Convertible Note</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">10.3</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Form of Warrant </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">99.1</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Press Release announcing the Transaction, dated May 29, 2012.</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 29.7pt">Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">Dated: May 30, 2012</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none; font-weight: bold">MGT CAPITAL INVESTMENTS, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-autospace: none">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 7%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 3%; text-autospace: none">By:&nbsp;</TD>
    <TD STYLE="width: 54%; border-bottom: black 1pt solid; text-autospace: none">/s/ Robert B. Ladd &nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Name: Robert B. Ladd</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Title: President and Chief Executive Officer &nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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{"company-data": {"conformed-name": "MGT CAPITAL INVESTMENTS INC", "cik": "0001001601", "assigned-sic": "7372", "irs-number": "133758042", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-32698", "film-number": "12875612"}, "business-address": {"street1": "500 MAMARONECK AVENUE - SUITE 204", "city": "HARRISON", "state": "NY", "zip": "10528", "phone": "(914) 630-7430"}, "mail-address": {"street1": "500 MAMARONECK AVENUE - SUITE 204", "city": "HARRISON", "state": "NY", "zip": "10528"}, "former-company": [{"former-conformed-name": "MEDICSIGHT INC", "date-changed": "20021113"}, {"former-conformed-name": "HTTP TECHNOLOGY INC", "date-changed": "20001016"}, {"former-conformed-name": "INTERNET HOLDINGS INC", "date-changed": "19980520"}]}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) May 30, 2012 (May 24, 2012)
MGT Capital Investments,
    Inc
.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
0-26886
13-4148725
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
500 Mamaroneck Avenue – Suite 204
Harrison, NY 10528
(Address of principal executive
offices, including zip code)
914-630-7431
(Registrant's Telephone Number, Including
Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(
see
General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement
On
May 24, 2012, MGT Capital Investments, Inc. (the "Company") entered into a securities purchase agreement (the
"SPA") with the investor listed on the Schedule of Buyers attached
thereto
("Investor"). The SPA provides for the purchase of an 18 month promissory note (the "Note")
convertible into up to 1,166,666 shares of common stock of MGT ("Common Stock") at a conversion price
of $3.00 per share and a warrant (the "Warrant") to purchase up to 875,000 shares of Common Stock at an exercise
price of $3.00 per share for proceeds of $3,500,000 (the "Transaction").  Both the issuance of Common
Stock pursuant to conversion of the Note and the issuance of Common Stock pursuant to the exercise of the Warrant are
subject to NYSE MKT LLC approval and approval of the Company's stockholders if the issuances would result in over 20%
of the Company's outstanding stock being issued.
The Note is convertible
at the option of the holder at a conversion price of $3.00 per share and the Company can require conversion into Company Common
Stock if the Weighted Average Price of the Common Stock equals or exceeds 200% of the conversion price for no less than twenty
(20) Trading Days during any thirty (30) consecutive Trading Day period occurring following the issuance date, subject to a 9.99%
beneficial ownership ceiling for Investor's ownership of Company Common Stock at any one time.  The Note is also redeemable
by the Company from and after the seven (7) month anniversary of the issuance date, subject to certain equity conditions, in cash
at a price equal to the greater of (i) 125% of the Conversion Amount to be redeemed and (ii) the product of (A) the Conversion
Amount being redeemed multiplied by (B) the quotient determined by dividing (x) the greatest Closing Sale Price of the shares of
Common Stock during the period beginning on the date immediately preceding the date of notice of redemption and ending on the date
the redemption date, by (y) the lowest Conversion Price in effect during such period, as such terms are defined in the Note. 
The Conversion Price of the Note is subject to adjustment in the case of combination or subdivision of stock or in the event of
the granting of any stock appreciation rights, phantom stock rights or other rights with equity features.
The Warrant is exercisable
at the option of the holder at a $3.00 per share exercise price or, in certain circumstances, a cashless exercise and the Company
can require exercise if the Weighted Average Price of the Company's Common Stock equals or exceeds 250% of the exercise price
for no less than twenty (20) Trading Days during any thirty (30) consecutive Trading Day period occurring following the issuance
date, as such terms are defined in the Warrant.  The Warrant exercise price is subject to adjustment in the case of combination
or subdivision of stock or in the event of the granting of any stock appreciation rights, phantom stock rights or other rights
with equity features.
The Transaction will
require MGT and certain of its subsidiaries to provide security of all of its assets, MGT to pledge stock of its subsidiaries and
certain of MGT's affiliates to execute voting and lockup agreements.  The proceeds of the Transaction will be used by the
Company for general working capital purposes.
The description of
the SPA, the Note, and the Warrant contained in this Item 1.01 is a summary and is qualified in its entirety by reference to the
copies that are attached hereto as Exhibits 10.1, 10.2 and 10.3, which are each incorporated herein by reference.
Item 3.02 Unregistered Sales of Securities.
The information provided in Item 1.01 is
hereby incorporated by reference to this Item 3.02.
Item 7.01 Regulation FD Disclosures.
On May 29, 2012, the Company issued a press
release announcing the Transaction described above, which is attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No.
Description
10.1
Securities Purchase Agreement,
dated May 24, 2012, by and between
MGT
Capital Investments, Inc.
and
the investor listed on the Schedule of Buyers attached thereto.
10.2
Form of Senior Secured Convertible Note
10.3
Form of Warrant
99.1
Press Release announcing the Transaction, dated May 29, 2012.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: May 30, 2012
MGT CAPITAL INVESTMENTS, INC.
By:
/s/ Robert B. Ladd
Name: Robert B. Ladd
Title: President and Chief Executive Officer