MGT Capital Investments, Inc. (OTC: MGTI), a Durham, N.C.-based Bitcoin miner, closed on a $2.4m 10% convertible note (convertible at $1.05 per share) financing.
The financing was issued to a single institutional investor, UAHC Ventures LLC, a subsidiary of publicly traded United American Healthcare Corp. (OTC: UAHC). The note is self-amortizing with a maximum repayment of $160k per month. In conjunction with the note, the company also issued the investor approximately 862,000 warrants with an exercise price of $1.05 per MGTI share.
The company will use the funds to materially ramp up its Bitcoin mining operations. It is currently constructing its third location in Washington State, and plan to deploy new mining rigs in this facility in early October 2017.
Led by Stephen Schaeffer, President, MGT Capital Investments is one of the largest U.S. based Bitcoin miners and is also developing a portfolio of cyber security technologies for mobile and personal tech devices, as well as corporate networks. The company’s first product, Sentinel, an enterprise class network intrusion detector, is currently in beta testing, with commercial released anticipated by the end of September 2017.
The company also has entered into a joint venture with Nordic IT to develop and market The Privacy Phone, a mobile phone with extensive privacy and anti-hacking features.
The phone has a tentative release date of February 2018.