MGT Capital Investments, the John McAfee led tech and Bitcoin mining company announced today that it has executed a new purchase order with China’s Bitmain Technologies for an additional 2,000 S9 Antminer mining rigs, with shipment expected by the end of fourth quarter 2017.
This is the latest order since September 1st when MGT purchased 500 rigs and the largest since August 25th when MGT announced 1,000 new Bitcoin mining rigs. Shipments for those are due mid-4th quarter. For all of 2016, MGT purchased a total of 400 mining machines from Bitmain.
Funds for the large order were provided by institutional investors through agreements whereby MGT will manage the mining operations and receive a management fee as well as a share of the profits. This financial arrangement creates downside protection for MGT while still providing strong economic upside leverage.
Stephen Schaeffer, President of MGT Crypto-Capital Strategies, stated:
“We believe having a mix of fully-owned and investor-owned mining rigs will allow us to appreciably expand our cryptocurrency footprint with less equity dilution. We plan to shortly update the investment community and shareholders with further details.”