Document:

ACKNOWLEDGEMENT
AND ACCEPTANCE AGREEMENT

 

acknowledgement
AND ACCEPTANCE AGREEMENT (this
“Agreement”) made as of this 12th day of October, 2017 between MGT Capital Investments, Inc., a Delaware corporation
(“MGT”), and the undersigned (the “Individual”).

 

WHEREAS,
on or around the date hereof, the Individual contributed cash to _______ LLC, a Delaware limited liability company (the “LLC”),
in exchange for membership interests in the LLC (the “Investment”);

 

WHEREAS,
the Individual understands that the LLC was formed in order to operate as a cryptocurrency mining business (the “Business”)
under the sole management of MGT;

 

WHEREAS,
on or around the date hereof, the LLC entered or is expected to enter into a management agreement by and between the LLC and MGT
attached hereto as Exhibit A (the “Management Agreement”) pursuant to which MGT agrees to manage
the Business;

 

WHEREAS,
in connection with the Management Agreement, the LLC was issued or will be issued shares of MGT’s Common Stock (“Common
Stock”) and warrants to purchase Common Stock (the “Warrants” and collectively with the Common Stock
and the Common Stock issuable upon exercise of the Warrants, the “Company Securities”);

 

WHEREAS,
the Individual wishes to acknowledge the receipt and review of the information set forth on Schedule I hereto (the
“Disclosure Statement”), the receipt and review of MGT’s disclosures filed by MGT (the “SEC
Reports”) with the U.S. Securities Exchange Commission (the “Commission”) and the Individual’s
understanding of (i) the relationship between MGT and the LLC and the financial terms and obligations of all parties set forth
in the Management Agreement; (ii) the nature and risks related to the Investment; (iii) the nature and risks related to the Business;
and (iv) the nature and risks related to the LLC’s investment, and the indirect investment of the Individual, in the Company
Securities, each of which are set forth in the Disclosure Statement and/or the SEC Reports.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto do hereby agree
as follows:

 

I.
acknowledgement

 

1.1
The Individual understands and hereby acknowledges that MGT’s ability and willingness to enter into the Management Agreement
is conditioned upon the execution of this Agreement by the Individual and all other individuals making the Investment in the LLC.

 

1.2
So long as the Individual and all other individuals making the Investment in the LLC execute this Agreement, MGT hereby agrees
to enter into the Management Agreement.

 

    	 

    	 

    

 

1.3
The Individual hereby acknowledges the receipt and understanding of the Disclosure Statement, which Disclosure Statement is deemed
to be an integral part of this Agreement and is incorporated herein by reference.

 

1.4
The Individual hereby acknowledges the receipt and understanding of the SEC Reports.

 

1.5
The Individual hereby acknowledges the Individual’s understanding of the nature and risks related to the Business, including
but not limited to those set forth in the Disclosure Statement.

 

1.6
The Individual hereby acknowledges the Individual’s understanding of (i) the relationship between MGT and the LLC; (ii)
the financial terms and obligations of all parties set forth in the Management Agreement; (iii) the risk related to the operation
of the Business pursuant to the Management Agreement; and (iv) the risks related to the LLC’s entry into the Management
Agreement.

 

1.7
The Individual hereby acknowledges the Individual’s understanding of the nature and risks related to the LLC’s investment
in MGT, including but not limited to those set forth in the Disclosure Statement.

 

1.8
The Individual hereby acknowledges the Individual’s understanding of the nature and risks related to the LLC’s investment
in Company Securities, and the indirect investment of the Individual in Company Securities, including but not limited to those
set forth in the Disclosure Statement and the SEC Reports.

 

II.
REPRESENTATIONS by THE INDIVIDUAL

 

2.1
The Individual is an “accredited investor,” as such term in defined in Rule 501 of Regulation D promulgated under
the Act, and the Individual is able to bear the economic risk of the Investment, including the indirect investment in the Company
Securities.

 

2.2
The Individual has prior investment experience (including investment in non-listed and non-registered securities), and has read
and evaluated, or has employed the services of an investment advisor, attorney or accountant to read and evaluate, all of the
documents furnished or made available by MGT and the LLC to the Individual, including but not limited to the SEC Reports and the
Disclosure Statement on Schedule I hereto, as well as the risks of the Investment by the Individual in the LLC and
the indirect investment by the Individual in the Company Securities. The Individual’s overall commitment to investments
which are not readily marketable is not disproportionate to the Individual’s net worth, and the Individual’s investment
in the LLC, and indirectly in the Company Securities, will not cause such overall commitment to become excessive. The Individual
has adequate means of providing for his or her current needs and personal and family contingencies and has no need for liquidity
in his or her investment in the LLC and the LLC’s investment in the Company Securities. The Individual is financially able
to bear the economic risk of this investment, including the ability to afford holding the Individual’s interest in the LLC,
the indirect interest in the Company Securities and any direct interest in the Company Securities (if such were distributed in
part or in whole by the LLC) for an indefinite period or for a complete loss.

 

    	 

    	 

    

 

2.3
The Individual acknowledges receipt and careful review of the Disclosure Statement, the Management Agreement, the SEC Reports
and all other documents furnished in connection with the Investment, including the indirect interest in the Company Securities
(collectively, the “Investment Documents”), and has been furnished with all information regarding the LLC,
the Management Agreement and MGT which the Individual has requested or desires to know; and the Individual has been afforded the
opportunity to ask questions of and receive answers from duly authorized officers or other representatives of the LLC and of MGT
concerning the terms and conditions of the Investment, the Management Agreement, the indirect investment in the Company Securities
and any additional information which the Individual has requested.

 

2.4
The Individual acknowledges that the Investment and the indirect investment in the Company Securities may involve tax consequences
to the Individual and that the contents of the Investment Documents do not contain tax advice. The Individual acknowledges that
the Individual must retain his, her or its own professional advisors to evaluate the tax and other consequences to the Individual
of an investment in the LLC and in the Company Securities, whether indirect or direct upon any distributions.

 

III.
RELEASE BY INDIVIDUAL

 

3.1
In exchange for the consideration provided for in this Agreement, the Individual irrevocably and unconditionally releases MGT
and its predecessors, subsidiaries, affiliates, and all successors and assigns of any of the foregoing (collectively, the “Releasees”),
of and from covenants, obligations and agreements that the Individual or her heirs or assigns, ever had, now has, or hereafter
can, shall, or may have, against the Releasees arising out of this Agreement, the Management Agreement, the Investment or the
direct or indirect investment and ownership in and of the Company Securities (collectively, the “Claims”),
except that, the Individual is not obligated to indemnify the Releasees against any Claims if such Claims arise out of or result
from the Releasees’ gross negligence or more culpable act or omission (including recklessness or willful misconduct) or
bad faith failure to materially comply with any of its material obligations set forth in this Agreement or the Management Agreement.

 

3.2
The Individual understands that this Agreement releases rights that the Individual may not know about. This is the Individual’s
knowing and voluntary intent, even though the Individual recognizes that someday the Individual might learn that some or all of
the facts that the Individual currently believes to be true are untrue and even though the Individual might then regret having
signed this Agreement.

 

IV.
MISCELLANEOUS

 

4.1
Any notice or other communication given hereunder shall be deemed sufficient if in writing and sent by reputable overnight courier,
facsimile (with receipt of confirmation) or registered or certified mail, return receipt requested, addressed to the LLC, MGT
and to the Individual at the addresses or facsimile numbers indicated on the signature page hereof. Notices shall be deemed to
have been given on the date when sent by facsimile transmission or overnight courier, or two days after mailed, except notices
of change of address, which shall be deemed to have been given when received.

 

    	 

    	 

    

 

4.2
This Agreement shall not be changed, modified or amended except by a writing signed by all parties hereto.

 

4.3
This Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective heirs, legal representatives,
successors and assigns. This Agreement sets forth the entire agreement and understanding between the parties as to the subject
matter hereof and merges and supersedes all prior discussions, agreements and understandings of any and every nature among them.

 

4.4
Notwithstanding the place where this Agreement may be executed by any of the parties hereto, the parties expressly agree that
all the terms and provisions hereof shall be construed in accordance with and governed by the laws of the State of New York. The
parties agree that in the event of any dispute, action, suit or other proceeding arising out of or in connection with this Agreement,
the prevailing party shall recover all of such party’s reasonable attorneys’ fees and costs incurred in each and every
action, suit or other proceeding, including any and all appeals or petitions therefrom.

 

4.5
This Agreement may be executed in counterparts, all of which will constitute one in the same instrument.

 

4.6
The holding of any provision of this Agreement to be invalid or unenforceable by a court of competent jurisdiction shall not affect
any other provision of this Agreement, which shall remain in full force and effect.

 

4.7
It is agreed that a waiver by either party of a breach of any provision of this Agreement shall not operate or be construed as
a waiver of any subsequent breach by that same party.

 

4.8
The parties agree to execute and deliver all such further documents, agreements and instruments and take such other and further
actions as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

 

4.9
Each of the parties shall be responsible for paying its own legal fees in connection with this Agreement.

 

[Signature
Page Follows]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

	MGT
    Capital Investments, Inc.	 
	 	 	 
	By:
    		 
	Name:	Robert
    Ladd	 
	Title:
    	President
    and CEO	 
	Address:
    	512
    S. Mangum Street, Suite 408, Durham, NC 27701	 
	Email:	rladd@mgtci.com	 

 

	INDIVIDUAL:	 
	 	 
	____________________________________(print
    name)	 

 

	By:	 	 
	Name:	 	 
	Title:	 	 
	Address:	 	 
	Email:	 	 

 

    	 

    	 

    

 

SCHEDULE
I

 

Disclosure
Statement

 

The
following description of the key terms of the Management Agreement does not purport to be complete and is qualified in its entirety
by reference to the complete text of the Management Agreement, which is attached hereto as Exhibit A, which is incorporated
herein by reference. Defined terms not otherwise defined herein shall have the meaning ascribed to them in the Management Agreement.

 

Pursuant
to the Management Agreement, the LLC will purchase certain Bitcoin Hardware as specified by MGT and engage MGT as the exclusive
manager to operate the LLC’s bitcoin mining business. In accordance with the Management Agreement, MGT agrees to select,
acquire, install, host, maintain and repair the Bitcoin Hardware and provide associated facilities and services necessary to mine
bitcoins. MGT and the LLC share equally the net profits generated from the bitcoin mining operation, after deducting Electricity
Costs and Operating Fee. As an inducement for the LLC to enter into the Management Agreement, MGT agreed to issue to the LLC (i)
193,000 restricted shares of MGT’s common stock; and (ii) a warrant to purchase 193,000 shares of MGT common stock. 

 

Risk
Factors

 

The
following list of risk factors does not purport to be a complete enumeration or explanation of the risks involved in investing
in the LLC, investing in the Company Securities or holding a direct or indirect interest in the Business, whether operated pursuant
to the Management Agreement or otherwise. Individuals should review the Investment Documents, the SEC Reports, this Disclosure
Statement and all schedules, exhibits and other information incorporated herein by reference in their entirety and consult with
their own advisers before making any decision to invest in the LLC, the Company Securities or acknowledge their understanding
of the Management Agreement or the Business.

 

RISKS
RELATED TO THE BUSINESS AND CRYPTOCURRENCIES

 

There
are substantial risks to be aware of when mining and holding cryptocurrencies, including BitCoins, which generally apply to the
LLC, the Business and the subject matter of the Management Agreement:

 

	 	1.	Losing
    a digital wallet of coins: a wallet could be lost by either locking yourself out by forgetting your password or by physically
    losing the wallet via a broken hard drive or if your online wallet provider goes out of business.
	 	 	 
	 	2.	Hacking
    and Malware: It is possible that a talented hacker can break into a mining pool and empty any of the users’ wallets,
    including the LLC’s wallet. In addition, it is possible for cryptocurrency-mining malware to infect mining machines.
    Such malware steals the resources of infected machines, significantly affecting their performance and increasing their wear
    and tear and could involve other costs, like increased power consumption.

 

    	 

    	 

    

 

	 	3.	Cryptocurrency
    are subject to significant price fluctuation and may drop in value and any anticipated profits from mining such cryptocurrencies
    or the recovery of your initial investment could be lost. The price (cryptocurrency exchange rates such as USD/BTC) of Bitcoin
    and/or any other cryptocurrency may fall sharply and may even fall to zero;
	 	 	 
	 	4.	Certain
    risk effecting value of Cryptocurrencies. Due to the fact that cryptocurrencies are unregulated and decentralized, their value
    is not insured by any legal entities. The value of any amount of any cryptocurrency is subject to change due to a number of
    factors out of the LLC’s, MGT’s and your control. These factors include but are not limited to changes of mining
    difficulty and/or other mining parameters/properties, fluctuating cryptocurrency exchange rates (such as USD/BTC), obsolescence
    of hardware and amortization of hardware. You understand and agree that the value of any amount of mined cryptocurrency may
    lose all worth at any moment of time due to the nature of cryptocurrencies.
	 	 	 
	 	5.	Bitcoins
    vs. other cryptocurrencies. It is possible that a competing cryptocurrency becomes more successful than Bitcoin or that somebody
    somehow finds a major flaw in the system.
	 	 	 
	 	6.	Cryptocurrencies
    are sometimes used or exploited in any way that is prohibited by the laws or regulations, with which, in the event you are
    distributed any cryptocurrencies, you agree to comply.
	 	 	 
	 	7.	Transactions
    with Cryptocurrencies may be unconfirmed for a period of time. Although very unlikely, some Cryptocurrency transactions may
    never be confirmed. Cryptocurrency transactions which are unconfirmed are not completed.
	 	 	 
	 	8.	Transactions
    with cryptocurrencies are irreversible - if you send any amount of any Cryptocurrency to the wrong person, for example, you
    may be unable to recover those funds.
	 	 	 
	 	9.	Unknown
    technical defects inherent in cryptocurrencies may exist.
	 	 	 
	 	10.	New
    regulation which impacts cryptocurrencies could be enacted.

 

The
following is a more in-depth, but by no means complete, analysis of certain key risks to which the LLC and MGT are subject and
under which the benefits of the Management Agreement may be affected (references to “us”, “we”, “our”
and similar terms refer to collectively the LLC, MGT and the Business operated pursuant to the Management Agreement, unless context
dictates otherwise):

 

    	 

    	 

    

 

The
loss or destruction of a private key required to access a cryptocurrency may be irreversible. Our loss of access to our private
keys or our experience of a data loss relating to our cryptocurrencies could have a material adverse effect on our business.

 

Cryptocurrencies
are controllable only by the possessor of both the unique public key and private key relating to the local or online digital wallet
in which the cryptocurrencies are held. We are required by the operation of the cryptocurrency network to publish the public key
relating to a digital wallet in use by us when it first verifies a spending transaction from that digital wallet and disseminates
such information into the cryptocurrency network. To the extent a private key is lost, destroyed or otherwise compromised and
no backup of the private key is accessible, we will be unable to access the cryptocurrencies held in the related digital wallet
and the private key will not be capable of being restored by the cryptocurrency network. Any loss of private keys relating to
digital wallets used to store our cryptocurrencies could have a material adverse effect on our business.

 

The
further development and acceptance of the cryptocurrency network, which represent a new and rapidly changing industry, are subject
to a variety of factors that are difficult to evaluate. The slowing or stopping of the development or acceptance of the cryptocurrency
network would have an adverse material effect on our business.

 

Cryptocurrencies,
such as cryptocurrencies, may be used, among other things, to buy and sell goods and services are a new and rapidly evolving industry
of which the bitcoin network is a prominent, but not unique, part. The growth of the cryptocurrency industry in general, and the
bitcoin network in particular, is subject to a high degree of uncertainty. The factors affecting the further development of the
cryptocurrency industry, as well as the bitcoin network, include, without limitation:

 

	 	●	continued
    worldwide growth in the adoption and use of bitcoin and other cryptocurrencies;
	 	 	 
	 	●	government
    and quasi-government regulation of bitcoin and other cryptocurrencies and their use, or restrictions on or regulation of access
    to and operation of the bitcoin network or similar cryptocurrencies systems;
	 	 	 
	 	●	the
    maintenance and development of the open-source software protocol of the bitcoin network or similar cryptocurrencies systems;
	 	 	 
	 	●	changes
    in consumer demographics and public tastes and preferences;
	 	 	 
	 	●	the
    availability and popularity of other forms or methods of buying and selling goods and services, including new means of using
    digital or fiat currencies; and
	 	 	 
	 	●	general
    economic conditions and the regulatory environment relating to cryptocurrencies.

 

A
decline in the popularity or acceptance of the bitcoin network or similar cryptocurrencies systems would adversely affect our
business.

 

The
price of cryptocurrency is extremely volatile. Fluctuations in the price of cryptocurrencies could materially and adversely affect
our business.

 

    	 

    	 

    

 

The
price of cryptocurrency is a significant uncertainty for our business. The price of cryptocurrencies is subject to dramatic fluctuations.
Using an exponential moving average and volume weighting of transaction data, the price of cryptocurrency is quoted by several
publicly-available indexes, including the Coindesk price index, which derives from the transaction prices on electronic market
places where exchange participants may use fiat currency to trade, buy and sell cryptocurrencies based on bid-ask trading (“Cryptocurrency
Exchange”). Though the methodology may change in the future, these indexes use US Dollar-denominated trading data from qualified
Cryptocurrency Exchanges with high trading volume in cryptocurrencies. The price of cryptocurrencies (the “Spot Price”)
has fluctuated widely over the past three years. For example, the price of a bitcoin reached a high of approximately $1,216 in
November 2013, while the price of a bitcoin was approximately $228 on August 22, 2015. Several factors may affect index spot price,
including, but not limited to:

 

	 	●	Global
    cryptocurrency supply;
	 	 	 
	 	●	Global
    cryptocurrency demand, which is influenced by the growth of retail merchants’ and commercial businesses’ acceptance
    of cryptocurrencies as payment for goods and services, the security of online Cryptocurrency Exchanges and digital wallets
    that hold cryptocurrencies, the perception that the use and holding of cryptocurrencies is safe and secure, and the lack of
    regulatory restrictions on their use;
	 	 	 
	 	●	Investors’
    expectations with respect to the rate of inflation;
	 	 	 
	 	●	Interest
    rates;
	 	 	 
	 	●	Currency
    exchange rates, including the rates at which cryptocurrencies may be exchanged for fiat currencies;
	 	 	 
	 	●	Fiat
    currency withdrawal and deposit policies of Cryptocurrency Exchanges and liquidity on such Cryptocurrency Exchanges;
	 	 	 
	 	●	Interruptions
    in service from or failures of major Cryptocurrency Exchanges;
	 	 	 
	 	●	Investment
    and trading activities of large investors, including private and registered funds, that may directly or indirectly invest
    in cryptocurrencies;
	 	 	 
	 	●	Monetary
    policies of governments, trade restrictions, currency devaluations and revaluations;
	 	 	 
	 	●	Regulatory
    measures, if any, that affect the use of cryptocurrencies as a form of payment or the purchase of cryptocurrencies on the
    Cryptocurrency Market;
	 	 	 
	 	●	The
    maintenance and development of the open-source software protocol of the cryptocurrency network;
	 	 	 
	 	●	Global
    or regional political, economic or financial events and situations; and
	 	 	 
	 	●	Expectations
    among cryptocurrency economy participants that the value of cryptocurrencies will soon change.

 

A
decrease in the price of cryptocurrencies may have a material adverse effect on our business.

 

Currently,
it is believed there is a relatively limited use of cryptocurrencies in the retail and commercial marketplace in comparison to
relatively extensive use by speculators, which contribute to price volatility that could adversely affect our business.

 

    	 

    	 

    

 

Cryptocurrencies
and the bitcoin network have only recently became widely accepted as a means of payment for goods and services by many major retail
and commercial outlets, and use of cryptocurrencies by consumers to pay such retail and commercial outlets remains limited. Conversely,
a significant portion of cryptocurrency demand is generated by speculators and investors seeking to profit from the short-term
or long-term holding of cryptocurrencies. A lack of expansion by cryptocurrencies into retail and commercial markets, or a contraction
of such use, may result in increased volatility or a reduction in the Spot Price, either of which could adversely impact our business.

 

The
Core Developers or other programmers could propose amendments to the cryptocurrency network’s protocols and software that,
if accepted and authorized by the cryptocurrency network’s community, could adversely affect our business.

 

The
cryptocurrency network is based on a math-based protocol that governs the peer-to-peer interactions between computers connected
to the cryptocurrency network. The code that sets forth the protocol is informally managed by a development team known as the
Core Developers. The members of the Core Developers evolve over time, largely based on self-determined participation in the resource
section dedicated to cryptocurrency on Github.com. The Core Developers can propose amendments to the cryptocurrency network’s
source code through one or more software upgrades that alter the protocols and software that govern the cryptocurrency network
and the properties of cryptocurrencies, including the irreversibility of transactions and limitations on the mining of new cryptocurrencies.
To the extent that a significant majority of the users and miners on the cryptocurrency network install such software upgrade(s),
the cryptocurrency network would be subject to new protocols and software that may adversely affect our business.

 

The
open-source structure of the cryptocurrency network protocol means that the Core Developers and other contributors to the protocol
are generally not directly compensated for their contributions in maintaining and developing the protocol. A failure to properly
monitor and upgrade the protocol could damage the cryptocurrency network, which may harm our business.

 

The
cryptocurrency network operates based on an open-source protocol maintained by the Core Developers and other contributors. As
the cryptocurrency network protocol is not sold and its use does not generate revenues for its development team, the Core Developers
are generally not compensated for maintaining and updating the cryptocurrency network protocol. To the extent that material issues
arise with the bitcoin network protocol, and the Core Developers and open-source contributor community are unable to address the
issues adequately or in a timely manner, the bitcoin network and our business may be adversely affected.

 

If
a malicious actor or botnet obtains control in excess of 50 percent of the processing power active on the bitcoin network, it
is possible that such actor or botnet could manipulate the Blockchain in a manner that adversely affects our business and our
ability to operate our business as planned.

 

    	 

    	 

    

 

If
a malicious actor, a volunteer or hacked collection of computers controlled by networked software coordinating the actions of
the computers referred to as a botnet obtains a majority of the processing power dedicated to mining on the bitcoin network, it
may be able to alter the Blockchain on which the bitcoin network and all bitcoin transactions rely by constructing alternate blocks.
In such alternate blocks, the malicious actor or botnet could control, exclude or modify transaction information. Using alternate
blocks, the malicious actor could “double-spend” its own cryptocurrencies (i.e., spend the same cryptocurrencies in
more than one transaction) and prevent the confirmation of other users’ transactions for so long as it maintains control.
To the extent that such malicious actor or botnet does not yield its majority control of the processing power on the bitcoin network
or the bitcoin community does not reject the fraudulent blocks as malicious, reversing any changes made to the Blockchain may
not be possible. Such changes could adversely affect our business or the ability of our business to operate.

 

The
award of cryptocurrencies for solving blocks and transaction fees for recording transactions may diminish, thereby diminishing
our profits. Further, if these amounts are not sufficiently high to incentivize other miners, miners may cease expending processing
power to solve blocks and confirmations of transactions on the Blockchain could be slowed. A reduction in the processing power
expended by miners on the bitcoin network could increase the likelihood of a malicious actor or botnet obtaining control in excess
of 50 percent of the processing power active on the bitcoin network or the Blockchain, potentially permitting such actor or botnet
to manipulate the Blockchain in a manner that adversely affects our business or our ability to operate.

 

If
the award of new cryptocurrencies for solving blocks declines and transaction fees are not sufficiently high, the direct effect
on our business may be material and adverse. Moreover, other miners may not have an adequate incentive to continue mining and
may cease their mining operations. Miners ceasing operations would reduce the collective processing power on the bitcoin network,
which would adversely affect the confirmation process for transactions (i.e., temporarily decreasing the speed at which blocks
are added to the Blockchain until the next scheduled adjustment in difficulty for block solutions) and make the bitcoin network
more vulnerable to a malicious actor or botnet obtaining control in excess of 50 percent of the processing power on the bitcoin
network. Significant reductions in processing power on the bitcoin network could result in material delays in block solution confirmation
time. Any reduction in confidence in the confirmation process or processing power of the bitcoin network may adversely impact
our business.

 

As
the number of cryptocurrencies awarded for solving a block in the Blockchain decreases, the incentive for miners to continue to
contribute processing power to the bitcoin network will transition from a set reward to transaction fees. Either the requirement
from miners of higher transaction fees in exchange for recording transactions in the Blockchain or a software upgrade that automatically
charges fees for all transactions may decrease demand for cryptocurrencies and prevent the expansion of the bitcoin network to
retail merchants and commercial businesses, resulting in a reduction in the price of cryptocurrencies that could adversely impact
our business.

 

    	 

    	 

    

 

In
order to incentivize miners to continue to contribute processing power to the bitcoin network, the bitcoin network may either
formally or informally transition from a set reward to transaction fees earned upon solving for a block. This transition could
itself have a material and adverse effect on our business by lowering the total revenue derivable from our mining activities.
If this process is accomplished either by miners independently electing to record in the blocks they solve only those transactions
that include payment of a transaction fee or by the bitcoin network adopting software upgrades that require the payment of a minimum
transaction fee for all transactions. If transaction fees paid for Bitcoin transactions become too high, the marketplace may be
reluctant to accept cryptocurrencies as a means of payment and existing users may be motivated to switch from cryptocurrencies
to another cryptocurrency or back to fiat currency. Decreased use and demand for cryptocurrencies may adversely affect their value
and result in a reduction in the price of bitcoin and materially and adversely affect our business.

 

To
the extent that any miners cease to record transactions in solved blocks, transactions that do not include the payment of a transaction
fee will not be recorded on the Blockchain until a block is solved by a miner who does not require the payment of transaction
fees. Any widespread delays in the recording of transactions could result in a loss of confidence in the bitcoin network, which
could adversely impact our business

 

To
the extent that any miners cease to record transaction in solved blocks, such transactions will not be recorded on the Blockchain.
Currently, there are no known incentives for miners to elect to exclude the recording of transactions in solved blocks; however,
to the extent that any such incentives arise (e.g., a collective movement among miners or one or more mining pools forcing bitcoin
users to pay transaction fees as a substitute for or in addition to the award of new cryptocurrencies upon the solving of a block),
actions of miners solving a significant number of blocks could delay the recording and confirmation of transactions on the Blockchain.
Any systemic delays in the recording and confirmation of transactions on the Blockchain could result in greater exposure to double-spending
transactions and a loss of confidence in the bitcoin network, which could adversely impact our business.

 

Intellectual
property related claims may adversely affect the operation of the bitcoin network.

 

Third
parties may assert intellectual property claims relating to the holding and transfer of cryptocurrencies and their source code.
Regardless of the merit of any intellectual property or other legal action, any threatened action that reduces confidence in the
bitcoin network’s long-term viability or the ability of end-users to hold and transfer cryptocurrencies may adversely affect
our business. Additionally, a meritorious intellectual property claim could prevent us and other end-users from accessing the
bitcoin network or holding or transferring their cryptocurrencies, which could force us to cease operations. As a result, an intellectual
property claim against us or any large bitcoin network participants could adversely affect our business.

 

The
Bitcoin Exchanges on which cryptocurrencies trade are relatively new and, in most cases, largely unregulated and may therefore
be more exposed to fraud and failure than established, regulated exchanges for other products. To the extent that the Bitcoin
Exchanges representing a substantial portion of the volume in bitcoin trading are involved in fraud or experience security failures
or other operational issues, such Bitcoin Exchanges’ failures may result in a reduction in the Spot Price and can adversely
affect our business.

 

    	 

    	 

    

 

The
Bitcoin Exchanges on which the cryptocurrencies trade are new and, in most cases, largely unregulated. Furthermore, many Bitcoin
Exchanges (including several of the most prominent US Dollar denominated Bitcoin Exchanges) do not provide the public with significant
information regarding their ownership structure, management teams, corporate practices or regulatory compliance. As a result,
the marketplace may lose confidence in, or may experience problems relating to, Bitcoin Exchanges, including prominent exchanges
handling a significant portion of the volume of bitcoin trading.

 

Over
the past four years, many Bitcoin Exchanges have been closed due to fraud, failure or security breaches. In many of these instances,
the customers of such Bitcoin Exchanges were not compensated or made whole for the partial or complete losses of their account
balances in such Bitcoin Exchanges. While smaller Bitcoin Exchanges are less likely to have the infrastructure and capitalization
that make larger Bitcoin Exchanges more stable, larger Bitcoin Exchanges are more likely to be appealing targets for hackers and
“malware” (i.e., software used or programmed by attackers to disrupt computer operation, gather sensitive information
or gain access to private computer systems). A lack of stability in the Bitcoin Exchange Market and the closure or temporary shutdown
of Bitcoin Exchanges due to fraud, business failure, hackers or malware, or government-mandated regulation may reduce confidence
in the bitcoin network and result in greater volatility in the Spot Price. These potential consequences of a Bitcoin Exchange’s
failure could adversely affect our business.

 

Regulatory
changes or actions may alter the nature of our business or restrict the use of cryptocurrencies or the operation of the Bitcoin
Network in a manner that adversely affects our business.

 

Until
recently, little or no regulatory attention has been directed toward cryptocurrencies and the Bitcoin Network by the U.S. federal
and state governments, foreign governments and self-regulatory agencies. As cryptocurrencies have grown in popularity and in market
size, the Federal Reserve Board, U.S. Congress and certain U.S. agencies have begun to examine the operations of the Bitcoin Network,
Bitcoin users and the Bitcoin Exchange Market. Local state regulators such as the California Department of Financial Institutions
and the New York State Department of Financial Services have also initiated examinations of cryptocurrencies, the Bitcoin Network
and the regulation thereof. Additionally, a U.S. federal magistrate judge in the U.S. District Court for the Eastern District
of Texas has ruled that “Bitcoin is a currency or form of money,” two CFTC commissioners publicly expressed a belief
that derivatives based on cryptocurrencies are subject to the same regulation as those based on commodities, and the IRS released
guidance treating cryptocurrencies as property that is not currency for US federal income tax purposes, although there is no indication
yet whether other courts or federal or state regulators will follow these asset classifications.

 

Bitcoin
currently faces an uncertain regulatory landscape in not only the United States but also in many foreign jurisdictions such as
the European Union, China and Russia. Various foreign jurisdictions may, in the near future, adopt laws, regulations or directives
that affect the Bitcoin Network and its users, particularly Bitcoin Exchanges and service providers that fall within such jurisdictions’
regulatory scope. Such laws, regulations or directives may conflict with those of the United States and may negatively impact
the acceptance of cryptocurrencies by users, merchants and service providers outside of the United States and may therefore impede
the growth of the Bitcoin economy.

 

    	 

    	 

    

 

The
effect of any future regulatory change or cryptocurrencies is impossible to predict, but such change could be substantial and
adverse to our business.

 

RISKS
RELATED TO THE COMPANY SECURITIES

 

An
investment, whether direct or indirect, in the Company Securities involves a high degree of risk and is subject to many uncertainties.
In addition to the risk factors specific to this offering set forth below, the risk factors set forth in Item 1A, “Risk
Factors,” in MGT’s Annual Report on Form 10-K filed with the Commission on April 20, 2017, are incorporated herein
by reference. These risks and uncertainties may adversely affect MGT’s business, operating results and financial condition.
In such an event, the trading price for Common Stock could decline substantially, and you could, directly or indirectly, lose
all or part of your investment. In order to attain an appreciation for these risks and uncertainties, you should read all risk
factors in their entirety and consider all of the information and advisements contained in the Investment Documents, including
the following risk factors and uncertainties.

 

There
will be restrictions on resale of the Company Securities and there is no assurance of the registration of the Company Securities.

 

None
of the Company Securities may be sold unless, at the time of such intended sale, there is a current registration statement covering
the resale of the Company Securities or an exemption from registration under the Securities Act, and such Securities have been
registered, qualified, or deemed to be exempt under applicable securities or “blue sky” laws in the state of residence
of the seller or in the state where sales are being effected. MGT has no current intention of filing a registration statement
covering the resale of the Company Securities. If no registration statement is filed and declared effective covering the resale
of any of the Company Securities sold pursuant to the Investment Documents, investors will be precluded from disposing of such
Company Securities unless such Company Securities may become eligible to be disposed of under the exemptions provided by Rule
144 under the Securities Act without restriction. If the Company Securities are not registered for resale under the Securities
Act, or exempt therefrom, and registered or qualified under applicable securities or “blue sky” laws, or deemed exempt
therefrom, the value of such securities will be greatly reduced.

 

MGT
may have at one time been deemed a “shell company” as defined in Rule 12b-2 under the Exchange Act. Pursuant to Rule
144(i), securities issued by a current or former shell company (that is, the Shares) that otherwise meet the holding period and
other requirements of Rule 144 nevertheless cannot be sold in reliance on Rule 144 unless at the time of a proposed sale pursuant
to Rule 144, MGT is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act and has filed all reports
and other materials required to be filed by Section 13 or 15(d) of the Exchange Act, as applicable, during the preceding 12 months
(or for such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports. As
a result, the restrictive legends on certificates for the Company Securities cannot be removed except in connection with an actual
sale meeting the foregoing requirements or pursuant to an effective registration statement.

 

    	 

    	 

    

 

The
number of Company Securities issued to the LLC in connection with the Management Agreement has been arbitrarily determined by
MGT.

 

The
number of Company Securities issued to the LLC in connection with the Management Agreement and therefore the underlying value
of the Company Securities was arbitrarily determined by MGT. The value of the Company Securities does not necessarily bear any
relationship to established valuation criteria such as earnings, book value or assets. Rather, the value of the Company Securities
may be derived as a result of our negotiations with the LLC based upon various factors including prevailing market conditions,
our future prospects and our capital structure. These values do not necessarily accurately reflect the actual value of the Company
Securities or the prices that may be realized upon disposition of the Company Securities.

 

An
investment in the Company Securities is speculative and there can be no assurance of any return on any such investment.

 

An
investment in the Company Securities is speculative and there is no assurance that investors will obtain any return on their investment.
Investors will be subject to substantial risks involved in an investment in MGT, including the risk of losing their entire investment.

 

Your
ownership interest is subject to dilution.

 

The
holder or holders of the Company Securities issued pursuant to the Investment Documents will experience immediate dilution in
the value of their Common Stock received upon exercise. In addition, each holder’s proportionate ownership interest may
be diluted when MGT issues additional shares of Common Stock. MGT may raise capital in the future through the sale of shares of
Common Stock, and each holder’s percentage interest in Common Stock would be diluted.EXECUTION
VERSION

 

NEITHER
THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A
LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

COMMON
STOCK PURCHASE WARRANT – SERIES F

 

MGT
Capital Investments, Inc.

 

	Warrant
    Shares: **** 	Initial
Issuance Date: October 12, 2017

 

Warrant
No:  F***

 

THIS
COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, ______, LLC or its assigns
(the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter
set forth, at any time on or after the Initial Exercise Date (as defined herein) and on or prior to the close of business on the
thirty-sixth (36th) month anniversary of the Initial Issuance Date (the “Termination Date”) but
not thereafter, to subscribe for and purchase from MGT CAPITAL INVESTMENTS, INC., a Delaware corporation (the “Company”),
up to ***** shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase
price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). The “Initial
Exercise Date” shall be the Initial Issuance Date.

 

Section
1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that
certain Acknowledgement and Acceptance Agreement, dated October 12, 2017, and that certain Management Agreement, dated
October 12, 2017, among the Company and the Holder (collectively, the “Transaction Documents”).

 

Section
2. Exercise.

 

a) Exercise
of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company
as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company)
of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto. Within two (2) Trading Days following the date
of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice
of Exercise by wire transfer or cashier’s check drawn on a United States bank. Notwithstanding anything herein to the contrary
(although the Holder may surrender the Warrant to, and receive a replacement Warrant from, the Company), the Holder shall not
be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available
hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for
cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises
of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect
of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant
Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date
of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within one (1) Trading Day of delivery
of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions
of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available
for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

    	 	 1	 

    	 	 

    

 

EXECUTION
VERSION

 

b) Exercise
Price. The initial exercise price per share of the Common Stock under this Warrant shall be Two Dollars USD ($2.00).

 

c) Mechanics
of Exercise.

 

(a) Delivery
of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be transmitted by the Company’s transfer
agent for its Common Stock (the “Transfer Agent”) to the Holder by (i) crediting the account of the Holder’s
prime broker with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”)
if the Company is then a participant in such system and there is an effective registration statement permitting the issuance of
the Warrant Shares to or resale of the Warrant Shares by the Holder ; or (ii) by physical delivery to the address specified by
the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the latest of (A) the delivery to the Company
of the Notice of Exercise, (B) surrender of this Warrant (if required) and (C) payment of the aggregate Exercise Price as set
forth above (such date, the “Warrant Share Delivery Date”). The Warrant Shares shall be deemed to have been
issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of
such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price
and all taxes required to be paid by the Holder, if any.

 

i. Delivery
of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder
and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant
Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called
for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

ii. Rescission
Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing
the Warrant Shares by the Warrant Share Delivery Date, then the Holder will have the right, at any time prior to issuance of such
Warrant Shares, to rescind such exercise.

 

iii. No
Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the
Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction
multiplied by the Exercise Price or round up to the next whole share.

 

    	 	 2	 

    	 	 

    

 

EXECUTION
VERSION

 

iv. Charges,
Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or
transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall
be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed
by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other
than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto
duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse
it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of
any Notice of Exercise.

 

v. Closing
of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of
this Warrant, pursuant to the terms hereof.

 

d) Holder’s
Exercise Limitations. (i)The Company shall not effect any exercise of this Warrant, and a Holder shall not have the
right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to
such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s
Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would
beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence,
the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares
of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall
exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion
of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised
or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock
Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially
owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section
2(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder
that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any
schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(d)
applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder
together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the
Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether
this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which
portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall
have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and
regulations promulgated thereunder. For purposes of this Section 2(d), in determining the number of outstanding shares of
Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s
most recent periodic or annual report filed with the SEC, as the case may be, (B) a more recent public announcement by the
Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common
Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and
in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares
of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including
this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock
was reported. The “Beneficial Ownership Limitation” shall be 9.99% of the number of shares of the Common
Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this
Warrant. The Holder may decrease the Beneficial Ownership Limitation at any time, but may not increase the Beneficial
Ownership Limitation provisions of this Section 2(d). The limitations contained in this paragraph shall apply to a successor
holder of this Warrant.

 

    	 	 3	 

    	 	 

    

 

EXECUTION
VERSION

 

Section
3. Certain Adjustments.

 

a) Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise
makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable
in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon
exercise of this Warrant or pursuant to any of the other Transaction Documents), (ii) subdivides outstanding shares of Common
Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock
into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock
of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number
of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator
shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain
unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the
effective date in the case of a subdivision, combination or re-classification.

 

b) Calculations.
All calculations under this Section 3 shall be made to the nearest cent or the nearest whole share, as the case may be. For purposes
of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum
of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

c) Notice
to Holder.

 

i. Adjustment
to Exercise Price. Whenever the Exercise Price is adjusted pursuant to this Section 3, the Company shall promptly mail to
the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant
Shares and setting forth a brief statement of the facts requiring such adjustment.

 

    	 	 4	 

    	 	 

    

 

EXECUTION
VERSION

 

ii. Notice
to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the
Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares
of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer
of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted
into other securities, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up
of the affairs of the Company, then, in each case, to the extent that such information constitutes material non-public information
(as determined in good faith by the Company) the Company shall deliver to the Holder at its last address as it shall appear upon
the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified,
a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights
or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled
to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it
is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities,
cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided
that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material,
non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with
the Commission SEC pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during
the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise
be expressly set forth herein.

 

Section
4. Transfer of Warrant.

 

a) Transferability.
Subject to compliance with any applicable securities laws and the provisions of the Transaction Documents, this Warrant and all
rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender
of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall
execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination
or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion
of this Warrant not so assigned, and this Warrant shall promptly be cancelled. The Warrant, if properly assigned in accordance
herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

    	 	 5	 

    	 	 

    

 

EXECUTION
VERSION

 

b) New
Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of
the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed
by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants
to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial
issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant
thereto.

 

c) Warrant
Register. The Company shall register this Warrant, upon records to be maintained by the Company or its transfer agent for
that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company
may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or
any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

Section
5. Piggyback Registration.If at any time prior to the date all the Warrant Shares have been resold or are
eligible to be freely resold pursuant to Rule 144, without any volume limitations, the Company shall determine to prepare and
file with the Securities and Exchange Commission a registration statement relating to an offering for its own account or the
account of others under the Securities Act of any of its equity securities, other than on Form S-3 and Form S-8, or their
then equivalents relating to equity securities to be issued solely in connection with any acquisition or acquisition of any
entity or business, the Company shall give the Holder written notice of such determination and, if within fifteen days after
receipt of such notice, the Holder shall so request in writing, the Company shall include in such registration statement all
or any part of the Warrant Shares held by the Holder that Holder requests to be registered, subject to customary underwriter
or placement agent cutbacks applicable to all holders of piggyback registration rights and consistently applied on a pro-rata
basis among all holders of piggyback registration rights.

 

Section
6. Certain Definitions. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a) “Affiliate”
shall mean as applied to any Person, means any other Person directly or indirectly controlling, controlled by, or under common
control with, that Person. For the purposes of this definition, “control” (including, with correlative meanings, the
terms “controlling”, “controlled by” and “under common control with”), as applied to any Person,
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of
that Person, whether through the ownership of voting securities or by contract or otherwise. For purposes of this definition,
a Person shall be deemed to be “controlled by” a Person if such latter Person possesses, directly or indirectly,
power to vote 10% or more of the securities having ordinary voting power for the election of directors of such former Person.

 

(b) “Bloomberg”
means Bloomberg Financial Markets.

 

    	 	 6	 

    	 	 

    

 

EXECUTION
VERSION

 

(c)
 “Closing Bid Price” and “Closing Sale Price” means,
for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the
Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and does
not designate the closing bid price or the closing trade price, as the case may be, then the last bid price or the last trade
price, respectively, of such security prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Principal Market
is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price,
respectively, of such security on the principal securities exchange or trading market where such security is listed or traded
as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such
security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg. If the Closing
Bid Price or the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the
Closing Bid Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value
as mutually determined by the Company and the Holder. All such determinations to be appropriately adjusted for any stock dividend,
stock split, stock combination or other similar transaction during the applicable calculation period.

 

(d) “Common
Stock” means (i) the Company’s shares of Common Stock, par value $0.001 per share, and (ii) any share capital
into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

(e) “Common
Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to
acquire at any time Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument
that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive,
Common Stock

 

(f) “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and a government or any department or agency thereof.

 

(g) “Principal
Market” means NYSE MKT or the principal securities exchange or securities market on which the Common Stock is then quoted
or traded.

 

(h) “Rule
144” means Rule 144 promulgated by the SEC pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Securities and Exchange Commission having substantially
the same purpose and effect as such Rule.

 

(i) “Subsidiary”
means any subsidiary of the Company including any direct or indirect subsidiary of the Company formed or acquired after the date
hereof.

 

(j) “Trading
Day” means any day on which the Common Stock are traded on the Principal Market, or, if the Principal Market is not
the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the
Common Stock are then traded; provided that “Trading Day” shall not include any day on which the Common Stock
are scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock are suspended from
trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance
the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

    	 	 7	 

    	 	 

    

 

EXECUTION
VERSION

 

Section
7. Miscellaneous.

 

a) No
Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights
as a stockholder of the Company prior to the exercise hereof.

 

b) Loss,
Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case
of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate,
if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation,
in lieu of such Warrant or stock certificate.

 

c) Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required
or granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the next succeeding
Trading Day.

 

d) Authorized
Shares.

 

(i) The
Company covenants that, during the period the Warrant is outstanding, it will maintain a reserve from its authorized and unissued
Common Stock 100% of the maximum number of shares for the issuance of the Warrant Shares upon the exercise of any purchase rights
under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers
who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant
Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be
necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation,
or of any requirements of the Principal Market upon which the Common Stock may be listed. The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase
rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued,
fully paid and non-assessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof
(other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

(ii) Except
and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution,
issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all
such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above
the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may
be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares
upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions
or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform
its obligations under this Warrant.

 

    	 	 8	 

    	 	 

    

 

EXECUTION
VERSION

 

(iii) Before
taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or
in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be
necessary from any public regulatory body or bodies having jurisdiction thereof.

 

e) Jurisdiction.
All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Transaction Documents.

 

f) Restrictions.
The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions
upon resale imposed by state and federal securities laws.

 

g) Non-waiver
and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall
operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies.

 

h) Notices.
Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered
in accordance with the notice provisions of the Transaction Documents.

 

i) Limitation
of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase
Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder
for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company
or by creditors of the Company.

 

j) Remedies.
The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation
for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be adequate.

 

k) Successors
and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall
inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and
permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to
time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

l) Amendment.
This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holders
of not less than 51% of the then outstanding Warrants issued pursuant to the Transaction Documents.

 

m) Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions
of this Warrant.

 

n) Headings.
The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of
this Warrant.

 

    	 	 9	 

    	 	 

    

 

EXECUTION
VERSION

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first
above indicated.

 

	 	MGT
    Capital Investments, Inc.
	 	 	 
	 	By:	
	 	Name:	Robert
Ladd
	 	Title:	President
and Chief Executive Officer

 

    	 	 10	 

    	 	 

    

 

NOTICE
OF EXERCISE

 

To:
MGT CAPITAL INVESTMENTS, INC.

 

(1) The
undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only
if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes,
if any.

 

(2) Payment
shall take the form of lawful money of the United States

 

(3) Please
issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is
specified below:

_______________________________

 

(4) After
giving effect to this Notice of Exercise, the undersigned will not have exceeded the Beneficial Ownership Limitation.

 

The
Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of a certificate to:

 

_______________________________

 

_______________________________

 

_______________________________

 

[SIGNATURE
OF HOLDER]

 

Name
of Investing Entity: ________________________________________________________________________

Signature
of Authorized Signatory of Investing Entity: _________________________________________________

Name
of Authorized Signatory: ___________________________________________________________________

Title
of Authorized Signatory: ____________________________________________________________________

Date:
________________________________________________________________________________________

 

    	 		 

    	 	 

    

 

ASSIGNMENT
FORM

 

(To
assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

 

MGT
CAPITAL INVESTMENTS, INC.

 

FOR
VALUE RECEIVED, [____] all of or [_______] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned
to

 

_______________________________________________
whose address is

 

_______________________________________________________________.

 

_______________________________________________________________

 

Dated:
______________, _______

 

Holder’s Signature: _____________________________

 

Holder’s
Address: _____________________________

 

_____________________________

 

Signature
Guaranteed: ___________________________________________

 

NOTE:
The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration
or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those
acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.

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