MGT Capital Orders 2000 S9 Bitcoin Miners for US Facility

MGT Capital Discloses Order of 2000 Mining Units

MGT Capital has disclosed a new purchase order of 2000 cryptocurrency mining units from Chinese chip manufacturer Bitmain. The new shipment, expected by the end of 4th quarter 2017, will add to MGT's mining operations based out of Cashmere, Washington. MGT is ramping up its cryptocurrency operations after securing a new round of funding from institutional investors.

MGT Capital is a cybersecurity and cryptocurrency mining firm headed by controversial cybersecurity expert John McAfee. The company kicked off mining operations in September 2016 and plans to become a mining powerhouse in the United States. This latest order of 2000 S9 antminer mining rigs will add to 650 more purchased in August.

Statement from MGT Crypto-Capital Strategies

President of MGT Crypto-Capital Strategies said:

"In late August, John revealed the mining operations were yielding 100 bitcoins per month, over $500,000 based on today's prices."

Understanding Cryptocurrency Mining

Cryptocurrency mining is the process through which new transactions are appended on a globally distributed ledger known as the blockchain. For every new block of transaction created, miners receive a reward in bitcoin. The process is energy intensive, but profitable. With the current price of $5800, the market value of rewards exceeds the costs of electricity and mining equipment. Miners on the bitcoin network currently receive 12 bitcoins every 10 minutes for successfully mining the next transaction block.

MGT also mines alternative cryptocurrencies such as Ethereum and Ethereum Classic.

Insights from John McAfee

Speaking to Bloomberg earlier this year via phone interview, McAfee said:

"We will definitely be profitable before the end of the year. From bitcoin mining, we will get the experience and expertise to apply the blockchain to our security products."

MGT's Expanding Operations

MGT's mining operations are located in the northwestern region of the US where abundantly cheap hydropower necessary for energy-intensive mining has attracted more miners. With over 5 PetaHash of processing power at its MegaWatt facility, MGT's mining operations are one of the largest in the United States.

Acquiring new mining equipment is part of the company's strategy to double capacity by the end of the year. Funds for expansion were provided by institutional investors such as UAHC Venture. The financing deal injected $2 million via a 10% convertible note issued to UAHC in August.