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MGT Capital Investments, which is seeking to diversify its portfolio of cyber technologies, has secured a location in central Washington to launch a bitcoin mining operation. The company has secured a location with low-cost hydro power to establish a facility to generate more than two PetaHash in processing power.
The facility will be completely operational by Aug. 1, the company noted in a press release, and can expand to nearly 10 PetaHash. MGT Capital believes it can become a domestic leader in cryptocurrency mining.
MGT Capital is led by John McAfee, who is considered a cyber security pioneer and is a one-time Libertarian Party presidential contender. The investment company recently named two of the most recognized names in the bitcoin world, Erik Voorhees, who will serve as an advisor, and Roger Ver, who will serve as advisory board chairman, CCN previously reported.
An Opportune Time For Bitcoin
The pricing environment of bitcoin and other digital assets, along with 16 nanometer ASIC chips, creates an opportunity to secure excellent profit margins.
MGT has already tested a 100 Tera-Hash operation which has allowed it to optimize production software. The test has also given the company experience to build out and manage a profitable mining operation.
Robert Collazo, who brings proven skills in maximizing profit margins after leading several buildouts since bitcoin’s inception, has been named to lead the venture.
Having an in-house mining operation gives MGT Capital the processing capabilities for numerous blockchain technologies that are emerging. The company can redirect its mining equipment to tasks beyond the blockchain as the demand grows for transaction processing.
Processing Demands To Increase
“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,” said McAfee, MGT executive chairman and CEO.
“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,” he said. “Further, we pleased that Robert has agreed to join us and use his expertise to grow the project.”
With McAfee at MGT Capital’s helm, the company is positioned to address cyber threats through protection technologies for personal and mobile devices, such as smart phones and tablets. MGT Capital is in the process of acquiring Demonsaw, a provider of anonymous file sharing software, and D-Vasive, which provides anti-spy software.
MGT Capital plans to change its corporate name to “John McAfee Global Technologies” after acquiring D-Vasive.
Featured image from Shutterstock.