The cybersecurity and Bitcoin mining firm MGT Capital owned by John McAfee has secured a total of $2.4 mln in new funding. This money will be used to expand the company’s Bitcoin mining operations in the Northwestern U.S..
The funding was raised from a 10 percent convertible note issued to UAHC Ventures LLC.
What is Bitcoin mining?
Bitcoin mining is the process used to add transactions to a universal public ledger called the Blockchain. Mining is an energy intensive process and therefore is expensive. As a reward for the miner who creates the next block in the Blockchain, 12.5 new Bitcoin are created and given to the miner.
Brief background of MGT Capital
MGT Capital is led by John McAfee, who established the eponymous anti-virus company in the late 1980s. His software firm was acquired by Intel for $7.6 bln in 2010.
Besides Bitcoin, MGT Capital also mines the digital currencies Ethereum and Ethereum Classic. The company is also involved in the development and production of cybersecurity products and a privacy-oriented phone.
In a May 2017 interview with Bloomberg, McAfee expressed his full confidence in the profitability of Bitcoin mining, even boasting that his company would be in the black by the end of the year.
"We will definitely be profitable before the end of the year. From Bitcoin mining, we will get the experience and expertise to apply the Blockchain to our security products."