MGT Capital Investment Inc Ventures Into Bitcoin Mining

With bitcoin transactions going mainstream, there has been a radical incline in the demand of this transpiring digital currency. But the thing is that bitcoins aren’t created by a central organization, neither are they controlled by any government. In fact, the new bitcoins are created by a group of miners sitting in remote data centers thronged with gigantic hardware. There are several bitcoin mining firms located in different regions of the world that provide cloud mining services to the individual bitcoin mining enthusiasts. Since the bitcoin mining difficulty is continuously rising, the mining process has got even more intense. Consequently many data centers have been shut down in past few months, imposing more burden on the cloud miners who are looking for cheap bitcoin mining contracts. At this point, the foundation of a new bitcoin mining farm by MGT Capital Investment Inc. brings good news for thousands of cloud miners across the world.

Also read Bitcoin Processing Units For Mining Cryptocurrency.

Yes, the Cyber Security group founded by John McAfee has ventured into the mining business earlier this year. The company has set up a big mining farm outside Washington state in the US from where it is running the operations. Usually, the mining farms are located in the regions where electricity costs are low as it requires an enormous amount of power to run a single mining farm. Owing to these conditions, a majority of bitcoin mining farms are located in Iceland as it suits well for the electricity requirements, that too at lowest costs. In fact, the largest bitcoin mining company named Genesis Mining has many farms located in Iceland. But the company proclaims that the massive electricity requirements won’t be an issue as the MGT mining farm will be running on hydropower. It will be taking electricity from the hydro power plant located in central Washington thereby keeping the electricity costs as low as possible.   

MGT Mining Operations

The bitcoin mining services offered by MGT are different from others in many ways. The company initially ran operations at 2 PH/s and so far it has mined up to 90 bitcoins where each bitcoin was worth $611. At this exchange rate, the company raised over $50k in revenues. Following this success, the company is about to initiate the phase 2 of its mining operations. In the second phase, the company plans to increase its mining power from 2 to 5 PH/s.

The company reveals that it is already among the top 5 American mining firms and at the current pace, it is most likely to expand the operations to 10 PH/s by the first quarter of 2017.

The Impact of Bitcoin Reward Halving

We can’t deny the fact that the bitcoin block rewards have been once again reduced to half taking the value to merely 6.25 BTC. This halving has definitely affected the profits earned by the miners but much of the losses are compensated by the high value of BTC price which is currently looming around $650 for each bitcoin.

The next reward halving will take place in 2020 and before that, not only MGT but every other bitcoin mining company will try to earn as many profits as they can by expanding their operations.