MGT Capital Raises $2.4M for Bitcoin Operationsbr>
Bitcoin mining and cybersecurity firm MGT Capital Investments has raised $2.4 million in new funding to ramp up its bitcoin mining operations.
Stephen Schaeffer, president of MGT Crypto-Capital Strategies, said that the new funding is further evidence of the company’s commitment to being the leading miner in North America. He added that they are currently constructing their third location in Washington State, and plan to deploy new mining rigs in that facility in early October.
The financing is comprised of a $2.4 million 10% convertible note (convertible at $1.05 per MGTI share) issued to a single institutional investor, UAHC Ventures LLC.
UAHC Ventures is a subsidiary of publicly traded United American Healthcare Corp. The note is self-amortizing, with a maximum repayment of $160,000 per month. In conjunction with the note, the company also issued the investor approximately 862,000 warrants with an exercise price of $1.05 per MGTI share.
“Today we see bitcoin and related-mining activities as a promising and fast-growing segment of the digital currency sector,” said UAHC Ventures CEO John Fife. “Accordingly, we’ve identified MGT Capital Investments, Inc. as a leader in bitcoin mining that is uniquely poised to capture market value as it expands its mining operations. As our commitment to making strategic investments through UAHC Ventures continues, we will further explore potential value-adding opportunities in the digital currency space, as they present themselves.”
MGT and its subsidiaries are principally engaged in the business of acquiring, developing, and monetizing intellectual property assets. John McAfee took over as the CEO of the company in May, 2016. The following month, the company revealed the details of the initial phase of a large-scale bitcoin mining operation designed to position it as a leader in blockchain technologies.