MGT Capital has announced it has raised $2.4 million USD to expand its mining operations. The capital has been raised through the issuance of a 10 percent convertible note to UAHC Ventures LLC.
The Funds Have Been Raised Through Issuing a 10 Percent Convertible Note to UAHC Ventures LLC
MGT Capital has raised $2.4 million USD to expand the company’s cryptocurrency mining operations. The funds will be used to bolster the company’s mining operations in the Northwest of US – where abundant hydropower is attracting cryptocurrency miners.
The funds have been raised through issuing a 10 percent convertible note to UAHC Ventures LLC – a subsidiary of United American Healthcare Corp. In a press release to share holders, MGT Capital has stated that “the note is self-amortising with a maximum repayment of $160,000 (£124,880) per month.” MGT has also issued UAHC Ventures with a warrant to purchase shares of MGT’s common stock.
Stephen Schaeffer, president of MGT Capital’s cryptocurrency division, has described the expansion as “further evidence of [MGT’s] commitment to being the leading miner in North America.” Schaeffer also stated that the company is “currently constructing our third location in Washington State, and plan to deploy new mining rigs in this facility in early October 2017.”
“We See Bitcoin and Related-Mining Activities as a Promising and Fast-Growing Segment of the Digital Currency Sector” – John Fife, CEO of UAHC Ventures
CEO of UAHC Ventures, John Fife, has described mining as one of the most dynamic sectors of the cryptocurrency economy. “Today we see bitcoin and related mining activities as a promising and fast-growing segment of the digital currency sector. We will further explore potential value-adding opportunities in the digital currency space, as they present themselves.”
In an interview with Bloomberg, then MGT Capital CEO, John McAfee, stated the company’s expectations to “be profitable before the end of the year”. MGT recently announced that it had passed the milestone of having mined 1,000 bitcoins since the company started mining operations in September of last year. MGT is also continuing the development of its so-called ‘Privacy Phone’ – which currently has an expected release date of February 2018.
Do you think that industrial mining operations will continue to proliferate within the United States? Share your thoughts in the comments section below!
Images courtesy of Shutterstock and MGT Capital
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