MGT Capital Enters into Agreement to Relocate Swedish Bitcoin Miners to Colorado

MGT Capital announced that it entered into a hosting agreement for a facility in Colorado Springs, CO to support its Bitcoin mining operations. As previously disclosed, the Company has been analyzing various options to relocate its approximately 6,300 S9 Antminer Bitcoin Miners presently housed in northern Sweden.

Stephen Schaeffer, MGT’s Chief Operating Officer provided the following commentary: “We have identified and successfully negotiated a deal with a U.S. facility that nicely suits our needs. This location is capable of not only providing a cost-effective solution to our relocation needs, but also facilitates our growth plans for 2019. As part of this strategy, the Company is confident it has minimized the transition risks, as this new facility is literally in ‘plug and play’ readiness.

The Colorado Springs facility has a dedicated standalone building for MGT’s use with an initial capacity of 10MW of electricity. Other areas of this former semiconductor campus have electrical infrastructure to support an additional 30MW of power. The Company hopes to complete the move and commence mining at full capacity before the end of December.”

Concluding, Mr. Schaeffer stated, “MGT is committed to the present and future of the Bitcoin eco-structure, and we have the capabilities to be opportunistic during this period of market stability. I believe that sometimes we must run into the burning building to find the greatest opportunities. Further, we plan to reassert our stature as one of the leaders in U.S. Bitcoin mining through an enhanced outreach program with the financial and business communities.”