In order to meet the processing demand for our future cybersecurity products that are Blockchain based, MGT will need a large number of ASIC computers. Our announced strategy is particularly cost effective, as mining computers are perfectly suited for this task and can earn a great ROI until we utilize the processing power of these super-fast machines to support the future revenue streams of our products.
MGT secured a location with contracted low cost hydro power in central Washington state to launch a facility. As of August 1, 2016, our mining facility was fully-operational and has expansion capacity to nearly 10 PetaHash. As of November 2016, the Company delivered the Phase Two metrics ahead of schedule, and expanded the processing power of its Bitcoin operations to over five PetaHash, firmly placing MGT as a leader in the U.S. Bitcoin mining network. At that time, the Company had mined over 170 Bitcoins, which were (at the time) valued at over $700 each.
- As part of its corporate efforts in secure technologies, MGT will continue to grow its capacity in mining Bitcoin. Currently at 5.0 PH/s, the Company's facility in Washington state produces about 100 Bitcoins per month, ranking it as one of the largest U.S.-based Bitcoin miners. Further, MGT is in active discussions with financial partners to grow Bitcoin output materially.
- The size and power efficiency of the facility will allow MGT to emerge as a domestic leader in crypto currency mining at an opportune time. The current pricing environment of bitcoin and other digital assets coupled with the release of new 16 nanometer ASIC chips provides a significant opportunity to generate excellent profit margins.
- MGT has been testing a smaller scale (100 TeraHash) operation with positive results. The testing has allowed us to optimize production software as well as provide experience to our team in building out and managing a profitable mining center.
- This significant commitment to an in-house mining facility also prepares MGT for the increased processing demands of the many new Blockchain technologies on the horizon. As the demand for transaction processing grows, MGT will redirect its mining machines towards supporting other tasks on the Blockchain.