It was announced today from John McAfee’s MGT Capital Investments Inc (OTC: MGTI) that the company is now mining 100 bitcoins per month (around $125,000 USD at today’s rates), making it one of the largest U.S. based miners.
The company recently announced plans to launch a Bitcoin cloud mining service this quarter called ‘MacPool’ but no official launch date has been set.
MGTI currently has a 5.0 PH/s fully owned Bitcoin mining facility which is hosted in Cashmere, Washington. The facility currently operates at a rate that is expected to generate approximately $100,000 of EBITDA each month and is in the process of doubling capacity with the recent purchase of more machines. Plans to substantially increase operations in 2017 are being contemplated.
MGTI confirmed they are in active discussions with potential financial partners to grow bitcoin output materially. Bitcoin mining by its nature over time requires increasing processing power, which in turn requires continuing investment in computer hardware and increasing power demands. As such, MGTI said in its update it cannot assure that its mining operations will remain profitable or say whether it will continue to invest in these operations.
Mining operating statistics:
- Some interesting stats revealed that during 2016, MGTI purchased 400 bitcoin mining machines from Bitmain Technologies Limited for $630 and power supplies from Hash The Planet for $53.
- The company also entered a 12–month agreement with HTP to host, power, connect, monitor and service the machines for $136. The hosting data center located in Cashmere, WA. MGTI launched its bitcoin mining operations and earned its first BTC on September 3, 2016.
- However, MGTI recognized only $313 in revenues for its bitcoin mining operation which commenced in 2016. 2017 should see much higher revenues with the current output noted above.