MGT Capital (MGT) Successfully Launches Bitcoin Mining Operations
MGT Capital Investments, Inc. (NYSE: MGT), today reported that its previously announced large scale Bitcoin mining operation has reached full phase one production output with a larger than expected 2.6 PetaHash of processing power. At the present difficulty level, the facility is mining over 90 Bitcoin per month with a value of $55,000. The company is already preparing modifications to expand its processing power to approximately 5.2 PetaHash by the end of the fourth quarter of 2016. The Company's current goal for this facility is to increase the processing capacity to nearly over 10 PetaHash.
With its processing power already in place, MGT is one of the top five Bitcoin mining operations in the U.S. MGT's facility has contracted low cost hydro power and hosting services in central Washington state. The size and power efficiency of the facility has allowed MGT to emerge as a domestic leader. The current pricing environment of bitcoin and other digital assets coupled with the availability of 16 nanometer ASIC chips provides a significant opportunity to generate excellent profit margins.
"The early success of our Bitcoin mining business has quickly provided us with the financial proof of concept to move ahead and implement the next phase of our expansion strategy, with a goal of achieving over 5 PetaHash by the end of the year, and the overall goal of 10 PetaHash for the facility," stated Robert Collazo, Director of Operations for MGT's Bitcoin mining operations.
"The opportunity in the Bitcoin market is tremendous for MGT and is quickly providing a financial benefit for our shareholders. Since announcing the program in July, we have implemented and then ramped up this facility's processing power to 2.6 PetaHash, which we believe makes MGT one of the top five Bitcoin miners in the U.S. We believe our overall goal of 10 PetaHash for this facility would put us in a leadership position in the global Bitcoin network," stated John McAfee, Executive Chairman of MGT.