Bitcoin mining operations are always fighting an uphill battle. The combination of a volatile Bitcoin price and high operating costs make most ventures unprofitable. In the case of MGT Capital, things are going a lot better than originally expected. In fact, the company wants to buy around 2,000 additional mining units from Bitmain. This goes to show their US mining facility will be expanded by quite a margin. An interesting decision, although one that isn’t surprising.
The news comes at a peculiar time in Bitcoin’s history. With a new all-time high behind us a day ago, mining cryptocurrency becomes a lot more prominent. MGT Capital has made a big impact in this regard already. The firm, supported by John McAfee, expects a big return on their original investment. So big even they will expand the number of miners in their facility sooner than expected. Right now, the company is operating in Washington due to cheap hydroelectric power.
A Smart Decision by MGT Capital
Additionally, MGT Capital recently secured another round of funding. This goes to show a lot of institutional investors see the merit of Bitcoin mining. By ordering another 2,000 miners from Bitmain, the company is growing by leaps and bounds. It is the second time the firm has expanded its operation in just a few months. This is also a testament as to how powerful Bitmain’s hardware really is. Finding the right balance between cost and return is very difficult, especially in the Bitcoin mining industry.
It is unclear how much money the company is making right now. Then again, with their new funding in place, the return must be pretty decent. Otherwise, investors wouldn’t support the company and allow it to grow further. Moreover, the Bitcoin price has appreciated in value quite a bit. With the value hovering around $6,000 there is plenty of reason to jump in right now. Not everyone can run a profitable mining business, though. MGT Capital is one of the market leaders right now.
Furthermore, it is worth mentioning the company doesn’t just focus on Bitcoin. They also mine ETH and ETC. For now, it seems they will not expand their mining capacity for these specific altcoins, though. The focus is mainly on Bitcoin otherwise they wouldn’t buy S9 machines. An interesting future lies ahead for MGT Capital, that much is evident. McAfee predicted a Bitcoin price of $500,000 in three years. If that holds true, the company will turn a massive profit by holding onto their BTC.
