John McAfee’s MGT Capital Investments, Inc. (OTC: MGTI) announced today that it has closed on financing to allow the company to materially ramp up its bitcoin mining operations. The financing consists of a $1.35 million 10% convertible note (convertible at $1.05 per MGTI share) issued to a single institutional investor.

The note is self-amortizing with a maximum repayment of $90,000 per month. In conjunction with the note, the company also issued the investor 1.2 million warrants with an exercise price of $1.05 per MGTI share.

The proceeds of the financing, along with company cash reserves will allow MGT to purchase 1,000 Bitmain Antminer S9 computers and associated power supplies.

Following shipment and setup (expected by early July 2017), MGT will be operating a total of 1,400 S9’s with a total computing power of over 18 PH/s, generating an estimated 225 bitcoins per month with a value currently of over $450,000.

Factoring in electricity, hosting and other direct operating costs, EBITDA from the company’s bitcoin mining operations is projected at $300,000 per month, prior to note amortization.

John McAfee stated:

“Today’s announcement is transformational for MGT. Not only does it vastly improve our financial profile, but it positions us as the only public company in the space at a time when Bitcoin has enormous momentum.”