Shares of Bitcoin miner and cybersecurity developer MGT Capital (MGTI) are higher after the firm announced that it completed its $2.4M financing to expand its Bitcoin mining operations.
MCAFEE CONNECTION: In November of 2016, the company announced that John McAfee, the colorful founder of software company McAfee Associates was appointed CEO. McAfee, who had previously served as the company’s executive chairman, said, “The advancements in personal and enterprise technologies have exposed us to a greater number of cybersecurity threats than ever before.” According to a statement from the firm, MGT with the help of McAfee has made several key acquisitions of exciting new technologies and has created one of the largest Bitcoin mining operations in the U.S. This past March, MGT completed the development of its Bitcoin mining pool. McAfee commented, “Our mining pool is a natural outgrowth of our investment in Blockchain technology as a foundation for future cybersecurity products. Large and respected Bitcoin mining operators will rapidly take over the enormous transaction processing requirements necessary for all companies to secure themselves in the near future. In late June, the company announced an agreement with Bit5ive to aid in a pilot program to mine the latest cryptocurrency fad Ethereum. “We are more convinced each day of the growth and value of digital currencies, and our company is uniquely positioned to be a leading provider of processing power to relevant blockchains. The addition of Ethereum and Ethereum Classic to our crypto mining strategies is expected to be very profitable for us,” said McAfee. Last week MGT announced that McAfee had been appointed Chief Cybersecurity Visionary of MGT, with Robert Ladd, who had been serving as president, will reassume the role of Chief Executive Officer, and that H. Robert Holmes, a long time independent director, will reassume the position of chairman of the board.
PRICE ACTION: Shares of MGT Capital are off earlier highs, up 3.64% to $2.28 per share in late morning trading.
