MGT Capital Raises $2.4 Million to Expand Bitcoin Mining Operation

The bitcoin mining and cybersecurity firm MGT Capital has raised $2.4 million in new funding.

The financing for MGT Capital came as a result of a 10 percent convertible note issued to a firm called UAHC Ventures LLC. The funding, according to statements, will be used to expand MGT's bitcoin mining operations in the northwest US, where plentiful hydropower has attracted more than a few miners.

Bitcoin mining is an energy intensive process by which new transactions are added to the blockchain, with new coins being created as a reward for the miner that creates the next transaction block. Profits are earned when the proceeds of mining exceed the cost of electricity and other resources.

The company's leadership team includes John McAfee, who founded the eponymous anti-virus software firm in the late 1980s. Intel went on to buy that company in 2010 for $7.6 billion.

In addition to mining bitcoin, MGT mines ethereum and ethereum classic, and is also developing cybersecurity products including a privacy-oriented phone.

In past statements to the media, McAfee has struck a bullish tone on the prospects of his bitcoin mine, telling Bloomberg in a May interview that "we will definitely be profitable before the end of the year." He also recently pushed back against arguments that the bitcoin market is in bubble territory.

Image Credit: Gage Skidmore/Flickr

Update: This article has been updated to reflect John McAfee's position within the MGT Capital leadership team.