MGT Capital Investments, Inc. (MGTI) today announced the end of its business relationship with legendary cybersecurity pioneer John McAfee. Since August 2017, Mr. McAfee had served as Chief Cybersecurity Visionary of MGTI, guiding the development of the company’s cybersecurity business, including Sentinel, an enterprise-class network intrusion detector released in October 2017 and the previously announced privacy phone. MGTI’s board will consider various options for its cybersecurity business, including a sale or spinoff.
This move will position MGTI as a pure play cryptocurrency mining operation, led by Stephen Schaeffer, President of MGT Cryptocurrency Strategies. MGTI currently owns or operates approximately 5,000 Bitmain Antminer S9 Bitcoin mining rigs and 50 GPU-based Ethereum miners, capable of generating over 65 Ph/s of computing power when fully deployed by the end of February. Moreover, MGTI is in negotiations that would triple its mining power over the next several months. From a financial standpoint, the company said it has never been stronger, ending last year with $9.5 million of cash, no debt, and minimal payables.
Mr. McAfee summarized today’s actions by stating:
“I would like to thank Steve, Rob Ladd and the entire board for giving me the opportunity to return to corporate life, but I am very happy with my decision. I am looking forward to toiling in obscurity as the world’s foremost authority of all things cyber and crypto! In all candor, the past two years have been action-packed and productive, and I want to thank all shareholders for their support. I leave MGT in much stronger condition than when I arrived and remain a major stakeholder.”
With facilities in northern Sweden and WA state, MGT Capital Investments, Inc. (OTCQB: MGTI) now ranks as one of the largest U.S. based Bitcoin miners. Further, the company continues to execute on an expansion model to grow its crypto assets materially.
MGTI also owns a portfolio of cybersecurity technologies, including the company’s first product, Sentinel, an enterprise-class network intrusion detector which was released in October 2017. The company also owns the intellectual property associated with developing and marketing a mobile phone with extensive privacy and anti-hacking features. The cybersecurity products were guided by John McAfee, the company’s former Chief Cybersecurity Visionary. MGT is presently evaluating various alternatives for its cybersecurity business.