MGT Capital Investments, Inc  disclosed the details of the initial phase of a large scale Bitcoin mining operation designed to position the Company as a leader in Blockchain technologies. 

The Company has secured a location with contracted low cost hydro power 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 size and power efficiency of the facility will allow MGT to emerge as a domestic leader in crypto currency mining at an opportune time. The 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. 

The Company has been testing a smaller scale (100 TeraHash) operation with positive results. The testing has allowed MGT to optimize its production software as well as provide experience to its team in building out and managing a profitable mining center.

The Company has named Robert Collazo to lead this venture. Mr. Collazo has proven skills in maximizing profit margins, having led several successful build outs in various locations since the inception of Bitcoin.

This significant commitment to an in-house mining facility also prepares MGT for the increased processing demands of the many new Blockchain technologies on the horizon. As the demand for transaction processing grows, the Company can redirect its mining machines towards supporting other tasks on the Blockchain.

John McAfee, MGT's proposed Executive Chairman and Chief Executive Officer, stated, "In order to meet the processing demand for our future cyber security products that are Blockchain based, MGT will need a large number of ASIC computers. Our announced strategy is particularly cost effective, as mining computers are perfectly suited for this task and can earn a great ROI until we utilize the processing power of these super-fast machines to support the future revenue streams of our products. Further, we pleased that Robert has agreed to join us and use his expertise to grow the project."