It is feared by many that the utter dominance of Bitcoin mining by a handful of Chinese firms will doom the cryptocurrency. However, despite the fact that international competitors such as KnCMiner were driven to bankruptcy, a new venture dares to take on China with a facility in the US no less.
MGT Capital Investments, Inc. (NYSE MKT: MGT) has secured a location with a contracted low cost hydro power source (electric dam) 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 company says that 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. Additionally, as the demand for transaction processing grows, it can redirect its mining machines towards supporting other tasks on the Blockchain.
Infamous cyber security pioneer and founder of the first commercial anti-virus program, John McAfee, is MGT’s proposed Executive Chairman and Chief Executive Officer. In addition to him, the entrepreneur Robert Collazo was chosen to lead this venture.
McAfee stated: “In order to meet the processing demand for our future