Cybersecurity and bitcoin mining company MGT Capital has announced the completion of a $2.4 million funding drive, in a move that will help the firm grow its bitcoin mining operations.
The funding came from an investment by UAHC Ventures LLC, in exchange for a 10% convertible note, which will enable MGT Capital to invest in its bitcoin operation in the northwest United States – fast becoming a hotbed of the bitcoin mining industry thanks to its unique natural resources.
The company board includes John McAfee, the cybersecurity expert who founded McAfee anti-virus software, which was bought by Intel for $7.6 billion back in 2010.
Outwardly vocal on the prospects of bitcoin, McAfee has said previously suggested that bitcoin will be worth $500,000 in three years time, as well as dismissing claims that the currency is in a bubble.
Having announced back in May that the company would be profitable within the next year, McAfee’s position has helped elevate the profile of MGT Capital. With the additional funding now secured for expansion, the company can continue to roll out their mining operations to further capitalise on the rise of the cryptocurrency asset class.
In addition to mining bitcoin, MGT Capital also mines both ethereum and ethereum classic. They are also working on a number of different products for the cybersecurity market, including maximum privacy telephones.
The funding comes at a pivotal moment for digital currencies, with the combined market cap of the over 800 currencies reaching $150 billion for the first time yesterday.
The energy intensive process of mining ensures a new supply of digital currencies like bitcoin, with miners running complex computing processes to uncover new blocks on each respective blockchain.
In return for mining the blocks, miners are given a reward, and it is this model that enables businesses in this space to operate profitably.
According to John McAfee, the mining side of the business will help provide the understanding and insight of the blockchain necessary to implement the technology across their portfolio of security products.
The distributed ledger technology is thought to hold benefits for a range of industries, including cybersecurity, as well as financial services, logistics, agriculture, shipping and more.