HARRISON, N.Y., June 30, 2016 /PRNewswire/ -- MGT Capital Investments, Inc. (NYSE MKT: MGT) disclosed today the details of the initial phase of a large scale Bitcoin mining operation designed to position the Company as a leader in Blockchain technologies.
The Company has secured a location with contracted low cost hydro power in central Washington state to launch a facility generating over two PetaHash in processing power. This facility is expected to be fully operational by August 1, 2016, and has expansion capacity to nearly 10 PetaHash. 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.
Recently, the Company has been testing a smaller scale (100 TeraHash) operation with positive results. The testing has allowed MGT to optimize its production software as well as provide experience to its team in building out and managing a profitable mining center.
The Company has named Robert Collazo to lead this venture. Mr. Collazo has proven skills in maximizing profit margins, having led several successful build outs in various locations since the inception of Bitcoin.
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, the Company can redirect its mining machines towards supporting other tasks on the Blockchain.
John McAfee, MGT's proposed Executive Chairman and Chief Executive Officer, stated, "In order to meet the processing demand for our future cyber security 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. Further, we pleased that Robert has agreed to join us and use his expertise to grow the project."
About MGT Capital Investments, Inc.
MGT Capital Investments, Inc. (NYSE MKT: MGT) is in the process of acquiring a diverse portfolio of cyber security technologies. With cyber security industry pioneer, John McAfee, at its helm, MGT Capital is positioned to address various cyber threats through advanced protection technologies for mobile and personal tech devices, including tablets and smart phones. The Company is currently in the process of acquiring D-Vasive, a provider of leading edge anti-spy software, and Demonsaw, a provider of a secure and anonymous file sharing software platform.
MGT Capital intends to change its corporate name to "John McAfee Global Technologies, Inc." upon closing of the D-Vasive transaction.
For more information on the Company, please visit http://ir.stockpr.com/mgtci.
This press release contains forward–looking statements. The words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward–looking statements." MGT's financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward–looking statements. This includes all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward–looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward–looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.
KCSA Strategic Communications
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SOURCE MGT Capital Investments, Inc.
Released June 30, 2016