DURHAM, NC, March 19, 2018 /PRNewswire/ — MGT Capital Investments, Inc. (OTCQB: MGTI) announced today that it has ended its cybersecurity operations by selling the Sentinel product line to a new entity formed by the unit’s management team, and stopping development of the privacy phone. The Sentinel assets were sold for $60,000 in cash and a $1.0 million promissory note, convertible into a 20% equity interest of the buyer. Also, the Company will provide full refunds for all preorders of the privacy phone.
Robert Lowrey, newly-appointed Chief Financial Officer of MGT commented, “Despite some initial market traction with Sentinel, the board has determined to focus resources on cryptocurrency mining and to end the cash burn associated with R&D and marketing in the highly competitive cybersecurity space.”
Operating in facilities in northern Sweden and Washington State, MGT Capital Investments, Inc. (OTCQB: MGTI) ranks as one of the largest U.S. based Bitcoin miners. When fully deployed, MGT will own and operate approximately 7,000 Bitmain S9mining rigs, and 50 GPU-based Ethereum mining machines. Further, the Company continues to execute on an expansion model to secure low cost power and grow its crypto assets materially.
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