Document:

THIS
WARRANT AND THE COMMON STOCK ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT
AND THE COMMON STOCK ISSUABLE HEREUNDER MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT AS TO THIS WARRANT OR ANY SHARES ISSUABLE HEREUNDER UNDER SUCH ACT AND ANY APPLICABLE STATE SECURITIES
LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO MGT CAPITAL INVESTMENTS, INC. OR ITS TRANSFER AGENT THAT SUCH REGISTRATION
IS NOT REQUIRED.

 

MGT
CAPITAL INVESTMENTS, INC.

 

WARRANT
TO PURCHASE SHARES OF COMMON STOCK

 

1.
Issuance. For good and valuable consideration as set forth in the Purchase Agreement (as defined below), including without
limitation the Purchase Price (as defined in the Purchase Agreement), the receipt and sufficiency of which are hereby acknowledged
by MGT Capital Investments, Inc., a Delaware corporation (“Company”);
Iliad Research and Trading, L.P., a Utah limited partnership, its successors and/or
registered assigns (“Investor”), is hereby granted the right to purchase at any time on or after the Issue
Date (as defined below) until the date which is the last calendar day of the month in which the fifth anniversary of the Issue
Date occurs (the “Expiration Date”), a number of fully paid and non-assessable shares (the “Warrant
Shares”) of Company’s common stock, par value $0.001 per share (the “Common Stock”), equal
to 1,231,819 Warrant Shares (as of the Issue Date), as such number may be adjusted from time to time pursuant to the terms and
conditions of this Warrant to Purchase Shares of Common Stock (this “Warrant”).

 

This
Warrant is being issued pursuant to the terms of that certain Securities Purchase Agreement dated May 18, 2017, to which Company
and Investor are parties (as the same may be amended from time to time, the “Purchase Agreement”). Certain
capitalized terms used herein are defined in Attachment 1 attached hereto and incorporated herein by this reference. Moreover,
to the extent any defined terms herein are defined in any other Transaction Document (as so noted herein), such defined term shall
remain applicable in this Warrant even if the other Transaction Document has been released, satisfied, or is otherwise cancelled.
This Warrant was issued to Investor on May 18, 2017 (the “Issue Date”).

 

2.
Exercise of Warrant.

 

2.1.
General.

 

(a)
This Warrant is exercisable in whole or in part at any time and from time to time commencing on the Issue Date and ending on the
Expiration Date. Such exercise shall be effectuated by submitting to Company (either by delivery to Company or by email or facsimile
transmission) a completed and signed Notice of Exercise substantially in the form attached to this Warrant as Exhibit A
(the “Notice of Exercise”). The date a Notice of Exercise is either faxed, emailed or delivered to Company
shall be the “Exercise Date,” provided that, if such exercise represents the full exercise of the outstanding
balance of this Warrant, Investor shall tender this Warrant to Company within five (5) Trading Days thereafter, but only if the
Delivery Shares to be delivered pursuant to the Notice of Exercise have been delivered to Investor as of such date. The Notice
of Exercise shall be executed by Investor and shall indicate (i) the number of Delivery Shares to be issued pursuant to such exercise,
and (ii) if applicable (as provided below), whether the exercise is a cashless exercise.

 

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(b)
Notwithstanding any other provision contained herein or in any other Transaction Document to the contrary, at any time prior to
the Expiration Date, Investor may elect a “cashless” exercise of this Warrant for any Warrant Shares whereby Investor
shall be entitled to receive a number of shares of Common Stock equal to (i) the excess of the Current Market Value over the aggregate
Exercise Price of the Exercise Shares, divided by (ii) the Adjusted Price; provided, however, that Investor may only elect
a “cashless exercise” if no Registration Statement covering all Delivery Shares deliverable under this Warrant has
been filed with the United States Securities and Exchange Commission on or before the date that is six (6) months from the Issue
Date.

 

(c)
If the Notice of Exercise form elects a “cash” exercise, the Exercise Price per share of Common Stock for the Delivery
Shares shall be payable, at the election of Investor, in cash or by certified or official bank check or by wire transfer in accordance
with instructions provided by Company at the request of Investor.

 

(d)
Upon the appropriate payment to Company, if any, of the Exercise Price for the Delivery Shares, Company shall promptly, but in
no case later than the date that is five (5) Trading Days following the date the Exercise Price is paid to Company (or with respect
to a “cashless exercise,” the date that is five (5) Trading Days following the Exercise Date) (the “Delivery
Date”), deliver or cause Company’s Transfer Agent to deliver the applicable Delivery Shares electronically via
the DWAC system to the account designated by Investor on the Notice of Exercise. If for any reason Company is not able to so deliver
the Delivery Shares via the DWAC system, notwithstanding its best efforts to do so, such shall constitute a breach of this Warrant,
and Company shall instead, on or before the applicable date set forth above in this subsection, issue and deliver to Investor
or its broker (as designated in the Notice of Exercise), via reputable overnight courier, a certificate, registered in the name
of Investor or its designee, representing the applicable number of Delivery Shares. For the avoidance of doubt, Company has not
met its obligation to deliver Delivery Shares within the required timeframe set forth above unless Investor or its broker, as
applicable, has actually received the Delivery Shares (whether electronically or in certificated form) no later than the close
of business on the latest possible delivery date pursuant to the terms set forth above. Moreover, and notwithstanding anything
to the contrary herein or in any other Transaction Document, in the event Company or its Transfer Agent refuses to deliver any
Delivery Shares to Investor on grounds that such issuance is in violation of Rule 144 under the 1933 Act (as defined below) (“Rule
144”), Company shall deliver or cause its Transfer Agent to deliver the applicable Delivery Shares to Investor with
a restricted securities legend, but otherwise in accordance with the provisions of this Section 2.1(d). In conjunction therewith,
Company will also deliver to Investor a written opinion from its counsel or its Transfer Agent’s counsel opining as to why
the issuance of the applicable Delivery Shares violates Rule 144.

 

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(e)
If Delivery Shares are delivered later than as required under subsection (d) immediately above, Company agrees to pay, in addition
to all other remedies available to Investor in the Transaction Documents, a late charge equal to the greater of (i) $500.00 and
(ii) 2% of the product of (1) the number of shares of Common Stock not issued to Investor on a timely basis and to which Investor
is entitled multiplied by (2) the Closing Trade Price of the Common Stock on the Trading Day immediately preceding the last possible
date which Company could have issued such shares of Common Stock to Investor without violating this Warrant, rounded to the nearest
multiple of $100.00 (such resulting amount, the “Warrant Share Value”) (but in any event the cumulative amount
of such late fees for each exercise shall not exceed 200% of the Warrant Share Value), per Trading Day until such Warrant Shares
are delivered (the “Late Fees”). Company acknowledges and agrees that the failure to timely deliver Delivery
Shares hereunder is a material breach of this Warrant and that the Late Fees are properly charged as liquidated damages to compensate
Investor for such breach. Company shall pay any Late Fees incurred under this subsection in immediately available funds upon demand;
provided, however, that, so long as the Note is outstanding, at the option of Investor, such amount owed may be added to
the principal amount of the Note. Furthermore, in the event that Company fails for any reason to effect delivery of the Delivery
Shares as required under subsection (d) immediately above, Investor may revoke all or part of the relevant Warrant exercise by
delivery of a notice to such effect to Company, whereupon Company and Investor shall each be restored to their respective positions
immediately prior to the exercise of the relevant portion of this Warrant, except that the Late Fees described above shall be
payable through the date notice of revocation or rescission is given to Company. Finally, in the event Company fails to deliver
any Delivery Shares to Investor for a period of ninety (90) days from the Delivery Date, Investor may elect, in its sole discretion,
to stop the accumulation of the Late Fees as of such date and require Company to pay to Investor a cash amount equal to (i) the
total amount of all Late Fees that have accumulated prior to the date of Investor’s election, plus (ii) the product of the
number of Delivery Shares deliverable to Investor on such date if it were to exercise this Warrant with respect to the remaining
number of Exercise Shares as of such date multiplied by the Closing Trade Price of the Common Stock on the Delivery Date (the
“Cash Settlement Amount”). At such time as Investor makes an election to require Company to pay to it the Cash
Settlement Amount, such obligation of Company shall be a valid and binding obligation of Company and shall for all purposes be
deemed to be a debt obligation of Company owed to Investor as of the date it makes such election. Upon Company’s payment
of the Cash Settlement Amount to Investor, this Warrant shall be deemed to have been satisfied. In addition, and for the avoidance
of doubt, even if Company could not deliver the number of Delivery Shares deliverable to Investor if it were to exercise this
Warrant with respect to the remaining number of Exercise Shares on the date of repayment due to the provisions of Section 2.2,
the provisions of Section 2.2 will not apply with respect to Company’s payment of the Cash Settlement Amount.

 

(f)
Investor shall be deemed to be the holder of the Delivery Shares (not including any Ownership Limitation Shares (as defined below))
issuable to it in accordance with the provisions of this Section 2.1 on the Exercise Date.

 

2.2.
Ownership Limitation. Notwithstanding anything to the contrary contained in this Warrant or the other Transaction Documents,
if at any time Investor shall or would be issued shares of Common Stock, but such issuance would cause Investor (together with
its affiliates) to own a number of shares exceeding 4.99% of the number of shares of Common Stock outstanding on such date (the
“Maximum Percentage”), Company must not issue to Investor shares of Common Stock which would exceed the Maximum
Percentage. The shares of Common Stock issuable to Investor that would cause the Maximum Percentage to be exceeded are referred
to herein as the “Ownership Limitation Shares”. In such event, Company shall reserve the Ownership Limitation
Shares for the exclusive benefit of Investor. From time to time, Investor may notify Company in writing of the number of the Ownership
Limitation Shares that may be issued to Investor without causing Investor to exceed the Maximum Percentage. Upon receipt of such
notice, Company shall be unconditionally obligated to immediately issue such designated shares to Investor, with a corresponding
reduction in the number of the Ownership Limitation Shares. Notwithstanding the foregoing, the term “4.99%” above
shall be replaced with “9.99%” at such time as the Market Capitalization is less than $10,000,000.00. Notwithstanding
any other provision contained herein, if the term “4.99%” is replaced with “9.99%” pursuant to the preceding
sentence, such change to “9.99%” shall be permanent. By written notice to Company, Investor may increase, decrease
or waive the Maximum Percentage as to itself but any such waiver will not be effective until the 61st day after delivery thereof.
The foregoing 61-day notice requirement is enforceable, unconditional and non-waivable and shall apply to all affiliates and assigns
of Investor.

 

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3.
Mutilation or Loss of Warrant. Upon receipt by Company of evidence satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant, and (in the case of loss, theft or destruction) receipt of reasonably satisfactory indemnification,
and (in the case of mutilation) upon surrender and cancellation of this Warrant, Company will execute and deliver to Investor
a new Warrant of like tenor and date and any such lost, stolen, destroyed or mutilated Warrant shall thereupon become void.

 

4.
Rights of Investor. Investor shall not, by virtue of this Warrant alone, be entitled to any rights of a stockholder in
Company, either at law or in equity, and the rights of Investor with respect to or arising under this Warrant are limited to those
expressed in this Warrant and are not enforceable against Company except to the extent set forth herein.

 

5.
Protection Against Dilution and Other Adjustments.

 

5.1.
Capital Adjustments. If Company shall at any time prior to the expiration of this Warrant subdivide the Common Stock, by
split-up or stock split, or otherwise, or combine its Common Stock, or issue additional shares of its Common Stock as a dividend,
the number of Warrant Shares issuable upon the exercise of this Warrant shall forthwith be automatically increased proportionately
in the case of a subdivision, split or stock dividend, or proportionately decreased in the case of a combination. Appropriate
adjustments shall also be made to the Exercise Price and other applicable amounts, but the aggregate purchase price payable for
the total number of Warrant Shares purchasable under this Warrant (as adjusted) shall remain the same. Any adjustment under this
Section 5.1 shall become effective automatically at the close of business on the date the subdivision or combination becomes effective,
or as of the record date of such dividend, or in the event that no record date is fixed, upon the making of such dividend.

 

5.2.
Reclassification, Reorganization and Consolidation. In case of any reclassification, capital reorganization, or change
in the capital stock of Company (other than as a result of a subdivision, combination, or stock dividend provided for in Section
5.1 above), then Company shall make appropriate provision so that Investor shall have the right at any time prior to the expiration
of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of
shares of stock and other securities and property receivable in connection with such reclassification, reorganization, or change
by a holder of the same number of shares of Common Stock as were purchasable by Investor immediately prior to such reclassification,
reorganization, or change. In any such case appropriate provisions shall be made with respect to the rights and interest of Investor
so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities and property
deliverable upon exercise hereof, and appropriate adjustments shall be made to the purchase price per Warrant Share payable hereunder,
provided the aggregate purchase price shall remain the same.

 

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5.3.
Subsequent Equity Sales. If Company or any subsidiary thereof, as applicable, at any time and from time to time while this
Warrant is outstanding, shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose
of, sell or issue (or announce any offer, sale, grant or any option to purchase or other disposition of) any Common Stock (including
any Common Stock issued under the Note, whether upon any type of conversion or any Deemed Issuance), debt, warrants, options,
preferred shares or other instruments or securities which are convertible into or exercisable for shares of Common Stock (together
herein referred to as “Equity Securities”), at an effective price per share less than the Exercise Price (such
lower price, the “Base Share Price”, and any such issuance, a “Dilutive Issuance”) (if the
holder of the Common Stock or Equity Securities so issued shall at any time, whether by operation of purchase price adjustments,
reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options, or rights per share
which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share
that is less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise Price on such
date of the Dilutive Issuance), then (a) the Exercise Price shall be reduced and only reduced to equal the Base Share Price, and
(b) the number of Warrant Shares issuable upon the exercise of this Warrant shall be increased to an amount equal to the number
of Warrant Shares Investor could purchase hereunder for an aggregate Exercise Price, as reduced pursuant to subsection (a) above,
equal to the aggregate Exercise Price payable immediately prior to such reduction in Exercise Price, provided that the increase
in the number of Exercise Shares issuable under this Warrant made pursuant to this Section 5.3 shall not at any time exceed a
number equal to three (3) times the number of Exercise Shares issuable under this Warrant as of the Issue Date (for the avoidance
of doubt, the foregoing cap on the number of Exercise Shares issuable hereunder shall only apply to adjustments made pursuant
to this Section 5.3 and shall not apply to adjustments made pursuant to Sections 5.1, 5.2 or any other section of this Warrant).
Such adjustments shall be made whenever such Common Stock or Equity Securities are issued. Company shall notify Investor, in writing,
no later than the Trading Day following the issuance of any Common Stock or Equity Securities subject to this Section 5.3, indicating
therein the applicable issuance price, or applicable reset price, exchange price, conversion price, or other pricing terms (such
notice, the “Dilutive Issuance Notice”). Dilutive Issuance Notices shall be in the form set forth in Section
6 below. For purposes of clarification, whether or not Company provides a Dilutive Issuance Notice pursuant to this Section 5.3,
upon the occurrence of any Dilutive Issuance, after the date of such Dilutive Issuance, Investor is entitled to receive the increased
number of Warrant Shares provided for in subsection (b) above at an Exercise Price equal to the Base Share Price regardless of
whether Investor accurately refers to the Base Share Price in the Notice of Exercise. Additionally, following the occurrence of
a Dilutive Issuance, all references in this Warrant to “Warrant Shares” shall be a reference to the Warrant Shares
as increased pursuant to subsection (b) above, and all references in this Warrant to “Exercise Price” shall be a reference
to the Exercise Price as reduced pursuant to subsection (a) above, as the same may occur from time to time hereunder.

 

5.4.
Exceptions to Adjustment. Notwithstanding the provisions of Section 5.3, no adjustment to the Exercise Price shall be effected
as a result of an Exempted Issuance.

 

6.
Certificate as to Adjustments. In each case of any adjustment or readjustment in the number or kind of shares issuable
on the exercise of this Warrant, or in the Exercise Price, pursuant to the terms hereof, Company at its expense will promptly
cause its Chief Financial Officer or other appropriate designee to compute such adjustment or readjustment in accordance with
the terms of this Warrant and prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts
upon which such adjustment or readjustment is based, including a statement of (a) the consideration received or receivable by
Company for any additional shares of Common Stock issued or sold or deemed to have been issued or sold, (b) the number of shares
of Common Stock outstanding or deemed to be outstanding, and (c) the Exercise Price and the number of shares of Common Stock to
be received upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and as adjusted or readjusted
as provided in this Warrant. Nothing in this Section 6 shall be deemed to limit any other provision contained herein.

 

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7.
Transfer to Comply with the Securities Act. This Warrant and the Warrant Shares have not been registered under the Securities
Act of 1933, as amended (the “1933 Act”). Neither this Warrant nor the Warrant Shares may be sold, transferred,
pledged or hypothecated without (a) an effective registration statement under the 1933 Act relating to such security or (b) an
opinion of counsel reasonably satisfactory to Company that registration is not required under the 1933 Act; provided, however,
that the foregoing restrictions on transfer shall not apply to the transfer of the Warrant to an affiliate of Investor. Until
such time as registration has occurred under the 1933 Act, each certificate for this Warrant and any Warrant Shares shall contain
a legend, in form and substance satisfactory to counsel for Company, setting forth the restrictions on transfer contained in this
Section 7; provided, however, that Company acknowledges and agrees that any such legend shall be removed from all certificates
for DTC Eligible Common Stock delivered hereunder as such Common Stock is cleared and converted into electronic shares by the
DTC, and nothing contained herein shall be interpreted to the contrary. Upon receipt of a duly executed assignment of this Warrant,
Company shall register the transferee thereon as the new holder on the books and records of Company and such transferee shall
be deemed a “registered holder” or “registered assign” for all purposes hereunder, and shall have all
the rights of Investor under this Warrant. Until this Warrant is transferred on the books of Company, Company may treat Investor
as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

 

8.
Notices. Any notice required or permitted hereunder shall be given in the manner provided in the subsection titled “Notices”
in the Purchase Agreement, the terms of which are incorporated herein by reference.

 

9.
Supplements and Amendments; Whole Agreement. This Warrant may be amended or supplemented only by an instrument in writing
signed by the parties hereto. This Warrant, together with the Purchase Agreement, contains the full understanding of the parties
hereto with respect to the subject matter hereof and thereof and there are no representations, warranties, agreements or understandings
with respect to the subject matter hereof and thereof other than as expressly contained herein and therein.

 

10.
Purchase Agreement; Arbitration of Disputes; Calculation Disputes. This Warrant is subject to the terms, conditions and
general provisions of the Purchase Agreement, including without limitation the Arbitration Provisions (as defined in the Purchase
Agreement) set forth as an exhibit to the Purchase Agreement. In addition, notwithstanding the Arbitration Provisions, in the
case of a dispute as to any Calculation (as defined in the Purchase Agreement), such dispute will be resolved in the manner set
forth in the Purchase Agreement.

 

11.
Governing Law; Venue. This Warrant shall be construed and enforced in accordance with, and all questions concerning the
construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of
Utah, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Utah or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Utah. The provisions set
forth in the Purchase Agreement to determine the proper venue for any disputes are incorporated herein by this reference.

 

12.
Waiver of Jury Trial. COMPANY IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS WARRANT OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY.
THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE
OR REGULATION. FURTHER, COMPANY ACKNOWLEDGES THAT IT IS KNOWINGLY AND VOLUNTARILY WAIVING ITS RIGHT TO DEMAND TRIAL BY JURY.

 

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13.
Remedies. The remedies at law of Investor under this Warrant in the event of any default or threatened default by Company
in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and, without limiting
any other remedies available to Investor in the Transaction Documents, at law or equity, to the fullest extent permitted by law,
such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction
against a violation of any of the terms hereof or otherwise without the obligation to post a bond.

 

14.
Liquidated Damages. Company and Investor agree that in the event Company fails to comply with any of the terms or provisions
of this Warrant, Investor’s damages would be uncertain and difficult (if not impossible) to accurately estimate because
of the parties’ inability to predict future interest rates, future share prices, future trading volumes and other relevant
factors. Accordingly, Investor and Company agree that any fees or other charges assessed under this Warrant are not penalties
but instead are intended by the parties to be, and shall be deemed, liquidated damages (under Investor’s and Company’s
expectations that any such liquidated damages will tack back to the Issue Date for purposes of determining the holding period
under Rule 144.

 

15.
Counterparts. This Warrant may be executed in any number of counterparts and each of such counterparts shall for all purposes
be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. Signatures delivered
via facsimile or email shall be considered original signatures for all purposes hereof.

 

16.
Attorneys’ Fees. In the event of any arbitration, litigation or dispute arising from this Warrant, the parties agree
that the party who is awarded the most money (which, for the avoidance of doubt, shall be determined without regard to any statutory
fines, penalties, fees, or other charges awarded to any party) shall be deemed the prevailing party for all purposes and shall
therefore be entitled to an additional award of the full amount of the attorneys’ fees and expenses paid by said prevailing
party in connection with arbitration or litigation without reduction or apportionment based upon the individual claims or defenses
giving rise to the fees and expenses. Nothing herein shall restrict or impair an arbitrator’s or a court’s power to
award fees and expenses for frivolous or bad faith pleading.

 

17.
Severability. Whenever possible, each provision of this Warrant shall be interpreted in such a manner as to be effective
and valid under applicable law, but if any provision of this Warrant shall be invalid or unenforceable in any jurisdiction, such
provision shall be modified to achieve the objective of the parties to the fullest extent permitted and such invalidity or unenforceability
shall not affect the validity or enforceability of the remainder of this Warrant or the validity or enforceability of this Warrant
in any other jurisdiction.

 

18.
Time is of the Essence. Time is expressly made of the essence with respect to each and every provision of this Warrant.

 

19.
Descriptive Headings. Descriptive headings of the sections of this Warrant are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions hereof.

 

[Remainder
of page intentionally left blank; signature page follows]

 

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IN
WITNESS WHEREOF, Company has caused this Warrant to be duly executed by an officer thereunto duly authorized as of the Issue Date.

 

	 	COMPANY:
	 	 
	 	MGT
    Capital Investments, Inc.
	 	 	 
	 	By:	 
	 	Name:	Robert
    Ladd
	 	Title:	President
    

 

[Signature
Page to Warrant]

 

    	 

    	 

    

 

ATTACHMENT
1

DEFINITIONS

 

For
purposes of this Warrant, the following terms shall have the following meanings:

 

A1.
“Adjusted Price” means the lower of (i) the Exercise Price (as such Exercise Price may be adjusted from time
to time pursuant to the terms of this Warrant), and (ii) the Market Price.

 

A2.
“Approved Stock Plan” means any stock option plan which has been approved by the board of directors of Company
and is in effect as of the Issue Date, pursuant to which Company’s securities may be issued to any employee, officer or
director for services provided to Company.

 

A3.
“Bloomberg” means Bloomberg L.P. (or if that service is not then reporting the relevant information regarding
the Common Stock, a comparable reporting service of national reputation selected by Investor and reasonably satisfactory to Company).

 

A4.
“Closing Bid Price” and “Closing Trade Price” means the last closing bid price and last
closing trade price, respectively, for the Common Stock on its principal market, as reported by Bloomberg, or, if its 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 last trade price, respectively, of the Common Stock prior to 4:00:00 p.m., New York
time, as reported by Bloomberg, or, if its principal market is not the principal securities exchange or trading market for the
Common Stock, the last closing bid price or last trade price, respectively, of the Common Stock on the principal securities exchange
or trading market where the Common Stock 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 the Common Stock in the over-the-counter market on the electronic bulletin
board for the Common Stock as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported
for the Common Stock by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for the
Common Stock as reported by OTC Markets Group, Inc., and any successor thereto. If the Closing Bid Price or the Closing Trade
Price cannot be calculated for the Common Stock on a particular date on any of the foregoing bases, the Closing Bid Price or the
Closing Trade Price (as the case may be) of the Common Stock on such date shall be the fair market value as mutually determined
by Investor and Company. If Investor and Company are unable to agree upon the fair market value of the Common Stock, then such
dispute shall be resolved in accordance with the procedures in the Purchase Agreement governing Calculations. All such determinations
shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such
period.

 

A5.
“Conversion Factor” means 65%, subject to the following adjustments. If at
any time the average of the three (3) lowest Closing Bid Prices in the twenty (20) Trading Days immediately preceding any date
of measurement is below $0.50, then in such event the then-current Conversion Factor shall be permanently reduced by 10% (subject
to other reductions set forth in this section). If at any time after the Issue Date, Company is not DWAC Eligible, then the then-current
Conversion Factor will automatically be permanently reduced by 5%. If at any time after the Issue Date, the Delivery Shares are
not DTC Eligible, then the then-current Conversion Factor will automatically be permanently reduced by an additional 5%. For example,
the first time Company is not DWAC Eligible, the Conversion Factor for future exercises thereafter will be reduced from 65% to
60% for purposes of this example. If, thereafter, the Delivery Shares are not DTC Eligible, the Conversion Factor for all future
exercises will automatically be permanently reduced from 60% to 55% for purposes of this example.

 

A6.
“Current Market Value” means an amount equal to the Trade Price multiplied by the number of Exercise Shares
specified in the applicable Notice of Exercise.

 

A7.
“Deemed Issuance” means an issuance of Common Stock that shall be deemed to have occurred on the latest possible
permitted date pursuant to the terms of this Warrant or the Note in the event Company fails to deliver shares of Common Stock
as and when required.

 

A8.
“Delivery Shares” means those shares of Common Stock issuable and deliverable upon the exercise or partial
exercise, as the case may be, of this Warrant.

 

A9.
“DTC” means the Depository Trust Company or any successor thereto.

 

[Attachment
1 to Warrant, Page 1]

 

    	 

    	 

    

 

 

A10.
“DTC Eligible” means, with respect to the Common Stock, that such Common Stock is eligible to be deposited
in certificate form at the DTC, cleared and converted into electronic shares by the DTC and held in the name of the clearing firm
servicing Investor’s brokerage firm for the benefit of Investor.

 

A11.
“DTC/FAST Program” means the DTC’s Fast Automated Securities Transfer program.

 

A12.
“DWAC” means the DTC’s Deposit/Withdrawal at Custodian system.

 

A13.
“DWAC Eligible” means that (a) Company’s Common Stock is eligible at DTC for full services pursuant to
DTC’s operational arrangements, including without limitation transfer through DTC’s DWAC system, (b) Company has been
approved (without revocation) by the DTC’s underwriting department, (c) Company’s transfer agent is approved as an
agent in the DTC/FAST Program, (d) the Delivery Shares are otherwise eligible for delivery via DWAC; (e) Company has previously
delivered all Delivery Shares to Investor via DWAC; and (f) Company’s transfer agent does not have a policy prohibiting
or limiting delivery of the Delivery Shares via DWAC.

 

A14.
“Exempt Issuances” means any shares of Common Stock issued or issuable in connection with (i) full or partial
consideration in connection with a strategic merger, acquisition, consolidation or purchase of substantially all of the securities
or assets of a corporation or other entity, (ii) Company’s issuance of securities in connection with strategic license agreements
and other partnering arrangements so long as such issuances are not primarily for the purpose of raising capital, (iii) issuance
of securities in connection with the acquisition of assets or transactions related to Company’s business as conducted on
the date hereof, and (iv) Company’s issuance of Common Stock or the issuances or grants of options to purchase Common Stock
to employees, directors, service providers and consultants, pursuant to an Approved Stock Plan.

 

A15.
“Exercise Price” means $1.05 per share of Common Stock, as the same may be adjusted from time to time pursuant
to the terms and conditions of this Warrant.

 

A16.
“Exercise Shares” means those Warrant Shares subject to an exercise of this Warrant by Investor. By way of
illustration only and without limiting the foregoing, if (i) this Warrant is initially exercisable for 4,180,000 Warrant Shares
and Investor has not previously exercised this Warrant, and (ii) Investor were to make a cashless exercise with respect to 5,000
Warrant Shares pursuant to which 6,000 Delivery Shares would be issuable to Investor, then (1) this Warrant shall be deemed to
have been exercised with respect to 5,000 Exercise Shares, (2) this Warrant would remain exercisable for 4,175,000 Warrant Shares,
and (3) this Warrant shall be deemed to have been exercised with respect to 6,000 Delivery Shares.

 

A17.
“Market Capitalization” means the product equal to (a) the average VWAP of
the Common Stock for the immediately preceding fifteen (15) Trading Days, multiplied by (b) the aggregate number of outstanding
shares of Common Stock as reported on Company’s most recently filed Form 10-Q or Form 10-K.

 

A18.
“Market Price” means the Conversion Factor multiplied by the average of the three (3) lowest Closing Bid Prices
in the twenty (20) Trading Days immediately preceding the applicable date of exercise. By way
of example only, if the Conversion Factor were 65% and the average of the three lowest Closing Bid Prices in the twenty (20) Trading
Days immediately preceding the applicable date of exercise were $1.00 then the Market Price would be $0.65 (65% x $1.00).

 

A19.
“Note” means that certain Secured Convertible Promissory Note issued by Company and MGT Mining One, Inc., a
Delaware corporation, to Investor pursuant to the Purchase Agreement, as the same may be amended from time to time, and including
any promissory note(s) that replace or are exchanged for such referenced promissory note.

 

A20.
“Trade Price” means the higher of: (i) the Closing Trade Price of the Common Stock on the Issue Date; and (ii)
the VWAP of the Common Stock for the Trading Day that is two (2) Trading Days prior to the Exercise Date.

 

A21.
“Trading Day” means any day the New York Stock Exchange is open for trading.

 

A22.
“Transaction Documents” means the Purchase Agreement, the Note, this Warrant, and all other documents, certificates,
instruments and agreements entered into or delivered in conjunction therewith, as the same may be amended from time to time.

 

A23.
“VWAP” means the volume-weighted average price of the Common Stock on the principal market for a particular
Trading Day or set of Trading Days, as the case may be, as reported by Bloomberg.

 

[Attachment
1 to Warrant, Page 2]

 

    	 

    	 

    

 

EXHIBIT
A

 

NOTICE
OF EXERCISE OF WARRANT

 

	TO:	MGT
    CAPITAL INVESTMENTS, INC.
	 	ATTN:
    _Robert Ladd__________
	 	VIA
    FAX TO: ( )______________ EMAIL: _rladd@mgtci.com_____________

 

The
undersigned hereby irrevocably elects to exercise the right, represented by the Warrant to Purchase Shares of Common Stock dated
as of May 18, 2017 (the “Warrant”), to purchase shares of the common stock, $0.001 par value (“Common
Stock”), of MGT Capital Investments, Inc., and tenders herewith payment in accordance with Section 2 of the Warrant,
as follows:

 

	 	 	CASH:
    $__________________________ = (Exercise Price x Delivery Shares)
	 	 	 
	 	 	Payment
    is being made by:
	 	 		 	enclosed
    check 
	 	 		 	wire
    transfer 
	 	 		 	other
	 	 	 	 	 
	 	 	CASHLESS
    EXERCISE:

 

Net
number of Delivery Shares to be issued to Investor: ______*

 

*
based on: Current Market Value - (Exercise Price x Exercise Shares)

                                                     Adjusted
Price

 

	 	Where:	 	 
	 	Trade
    Price [“TP”] 	=	$____________
	 	Exercise
    Shares	=	_____________
	 	Current
    Market Value [TP x Exercise Shares]	=	$____________
	 	Exercise
    Price	=	$____________
	 	Adjusted
    Price	=	$____________

 

Capitalized
terms used but not otherwise defined herein shall have the meanings ascribed to them in the Warrant.

 

It
is the intention of Investor to comply with the provisions of Section 2.2 of the Warrant regarding certain limits on Investor’s
right to receive shares thereunder. Investor believes this exercise complies with the provisions of such Section 2.2. Nonetheless,
to the extent that, pursuant to the exercise effected hereby, Investor would receive more shares of Common Stock than permitted
under Section 2.2, Company shall not be obligated and shall not issue to Investor such excess shares until such time, if ever,
that Investor could receive such excess shares without violating, and in full compliance with, Section 2.2 of the Warrant.

 

As
contemplated by the Warrant, this Notice of Exercise is being sent by email or by facsimile to the fax number and officer indicated
above.

 

Exhibit
A to Warrant, Page 1

 

    	 

    	 

    

 

If
this Notice of Exercise represents the full exercise of the outstanding balance of the Warrant, Investor will surrender (or cause
to be surrendered) the Warrant to Company at the address indicated above by express courier within five (5) Trading Days after
the Warrant Shares to be delivered pursuant to this Notice of Exercise have been delivered to Investor.

 

To
the extent the Delivery Shares are not able to be delivered to Investor via the DWAC system, please deliver certificates representing
the Delivery Shares to Investor via reputable overnight courier after receipt of this Notice of Exercise (by facsimile transmission
or otherwise) to:

 

	 	 	 
	 	 	 
	 	 	 

 

	Dated:	        	 
	 	 	 
	 	 
	[Name
    of Investor]	 
	 	 	 
	By:	 	 

 

Exhibit
A to Warrant, Page 2Security
Agreement

 

This
Security Agreement (this “Agreement”),
dated as of May 18, 2017, is executed by MGT Mining One, Inc., a Delaware corporation (“Debtor”), in favor
of Iliad Research and Trading, L.P., a Utah limited partnership (“Secured Party”).

 

A.
Debtor and MGT Investments, Inc., a Delaware corporation (“Company”), have issued to Secured Party a certain
Secured Convertible Promissory Note of even date herewith, as may be amended from time to time, in the original face amount of
$1,355,000.00 (the “Note”).

 

B.
In order to induce Secured Party to extend the credit evidenced by the Note, Debtor has agreed to enter into this Agreement and
to grant Secured Party a security interest in the Collateral (as defined below).

 

NOW,
THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, Debtor hereby agrees with Secured Party as follows:

 

1.
Definitions and Interpretation. When used in this Agreement, the following terms have the following respective meanings:

 

“Collateral”
has the meaning given to that term in Section 2 hereof.

 

“Intellectual
Property” means all patents,
trademarks, service marks, trade names, copyrights, trade secrets, licenses (software or otherwise),
information, know-how, inventions, discoveries, published and unpublished works
of authorship, processes, any and all
other proprietary rights, and all rights corresponding to all
of the foregoing throughout the world, now owned
and existing or hereafter arising, created
or acquired.

 

“Lien”
shall mean, with respect to any property, any security interest, mortgage, pledge, lien, claim, charge or other encumbrance in,
of, or on such property or the income therefrom, including, without limitation, the interest of a vendor or lessor under a conditional
sale agreement, capital lease or other title retention agreement, or any agreement to provide any of the foregoing, and the filing
of any financing statement or similar instrument under the UCC or comparable law of any jurisdiction.

 

“Obligations”
means (a) all loans, advances, future advances, debts, liabilities and obligations, howsoever arising, owed by Debtor to Secured
Party or any affiliate of Secured Party of every kind and description, now existing or hereafter arising, whether created by the
Note, this Agreement, that certain Securities Purchase Agreement of even date herewith, entered into by and among Company, Debtor
and Secured Party (the “Purchase Agreement”), any other Transaction Documents (as defined in the Purchase Agreement),
any other promissory note issued by Debtor in favor of Secured Party (or any affiliate of Secured Party), any modification or
amendment to any of the foregoing, guaranty of payment or other contract or by a quasi-contract, tort, statute or other operation
of law, whether incurred or owed directly to Secured Party or as an affiliate of Secured Party or acquired by Secured Party or
an affiliate of Secured Party by purchase, pledge or otherwise, (b) all costs and expenses, including attorneys’ fees, incurred
by Secured Party or any affiliate of Secured Party in connection with the Note or in connection with the collection or enforcement
of any portion of the indebtedness, liabilities or obligations described in the foregoing clause (a), (c) the payment of all other
sums, with interest thereon, advanced in accordance herewith to protect the security of this Agreement, and (d) the performance
of the covenants and agreements of Debtor contained in this Agreement and all other Transaction Documents.

 

    	1 

    	 

    

 

“Permitted
Liens” means (a) Liens for taxes not yet delinquent or Liens for taxes being contested in good faith and by appropriate
proceedings for which adequate reserves have been established, and (b) Liens in favor of Secured Party under this Agreement or
arising under the other Transaction Documents.

 

“UCC”
means the Uniform Commercial Code as in effect in the state whose laws would govern the security interest in, including without
limitation the perfection thereof, and foreclosure of the applicable Collateral.

 

Unless
otherwise defined herein, all terms defined in the UCC have the respective meanings given to those terms in the UCC.

 

2.
Grant of Security Interest. As security for the Obligations, Debtor hereby pledges to Secured Party and grants to Secured
Party a security interest in all right, title, interest, claims and demands of Debtor in and to the property described in Schedule
A hereto, and all replacements, proceeds, products, and accessions thereof (collectively, the “Collateral”).

 

3.
Authorization to File Financing Statements. Debtor hereby irrevocably authorizes Secured Party at any time and from time
to time to file in any filing office in any Uniform Commercial Code jurisdiction or other jurisdiction of Debtor or its subsidiaries
(including without limitation Delaware and North Carolina) any financing statements or documents having a similar effect and amendments
thereto that provide any other information required by the Uniform Commercial Code (or similar law of any non-United States jurisdiction,
if applicable) of such state or jurisdiction for the sufficiency or filing office acceptance of any financing statement or amendment,
including whether Debtor is an organization, the type of organization and any organization identification number issued to Debtor.
Debtor agrees to furnish any such information to Secured Party promptly upon Secured Party’s request.

 

4.
General Representations and Warranties. Debtor represents and warrants to Secured Party that (a) Debtor is the owner of
the Collateral and that no other person has any right, title, claim or interest (by way of Lien or otherwise) in, against or to
the Collateral, other than Permitted Liens, (b) upon the filing of UCC-1 financing statements with the Delaware Secretary of State,
Secured Party shall have a perfected first-position security interest in the Collateral to the extent that a security interest
in the Collateral can be perfected by such filing, except for Permitted Liens, (c) Debtor has received at least a reasonably equivalent
value in exchange for entering into this Agreement, including without limitation receiving a portion of the loan proceeds, and
thereby will materially benefit from the financial accommodations granted to Debtor by Secured Party pursuant to the Transaction
Documents, (d) Debtor is not insolvent, as defined in any applicable state or federal statute, nor will Debtor be rendered insolvent
by the execution and delivery of this Agreement to Secured Party; and (e) as such, this Agreement is a valid and binding obligation
of Debtor.

 

5.
Additional Covenants. Debtor hereby agrees:

 

5.1.
to perform all acts that may be necessary to maintain, preserve, protect and perfect in the Collateral, the Lien granted to Secured
Party therein, and the perfection and priority of such Lien;

 

5.2.
to procure, execute (including endorse, as applicable), and deliver from time to time any endorsements, assignments, financing
statements, certificates of title, and all other instruments, documents and/or writings reasonably deemed necessary or appropriate
by Secured Party to perfect, maintain and protect Secured Party’s Lien hereunder and the priority thereof;

 

    	2 

    	 

    

 

5.3.
to provide at least fifteen (15) days prior written notice to Secured Party of any of the following events: (a) any changes or
alterations of Debtor’s name, (b) any changes with respect to Debtor’s address or principal place of business, and
(c) the formation of any subsidiaries of Debtor;

 

5.4.
upon the occurrence of an Event of Default (as defined in the Note) under the Note and, thereafter, at Secured Party’s request,
to endorse (up to the outstanding amount under such promissory notes at the time of Secured Party’s request), assign and
deliver any promissory notes included in the Collateral to Secured Party, accompanied by such instruments of transfer or assignment
duly executed in blank as Secured Party may from time to time specify;

 

5.5.
to the extent the Collateral is not delivered to Secured Party pursuant to this Agreement, to keep the Collateral at the principal
office of Debtor (unless otherwise agreed to by Secured Party in writing), and not to relocate the Collateral to any other locations
without the prior written consent of Secured Party;

 

5.6.
not to sell or otherwise dispose, or offer to sell or otherwise dispose, of the Collateral or any interest therein (other than
inventory in the ordinary course of business);

 

5.7.
not to, directly or indirectly, allow, grant or suffer to exist any Lien upon any of the Collateral, other than Permitted Liens;

 

5.8.
not to grant any license or sublicense under
any of its Intellectual Property, or enter
into any other agreement with respect to any of its
Intellectual Property, except in the ordinary course of Debtor’s
business;

 

5.9.
to the extent commercially reasonable and in Debtor’s
good faith business judgment: (a) to file
and prosecute diligently any patent, trademark
or service mark applications pending as of the date
hereof or hereafter until all
Obligations shall have been paid in full,
(b) to make application on unpatented
but patentable inventions and on trademarks and service
marks, (c) to preserve and maintain all
rights in all of its Intellectual
Property, and (d) to ensure
that all of its Intellectual Property
is and remains enforceable. Any and all
costs and expenses incurred in connection
with each of Debtor’s obligations
under this Section 5.9 shall
be borne by Debtor. Debtor shall not
knowingly and unreasonably abandon any
right to file a patent, trademark
or service mark application, or abandon
any pending patent application, or any other
of its Intellectual Property, without
the prior written consent of Secured Party except for Intellectual Property
that Debtor determines, in the
exercise of its good faith business judgment, is not
or is no longer material to its business;

 

5.10.
upon the request of Secured Party at
any time or from time
to time, and at the sole cost
and expense (including, without limitation, reasonable attorneys’ fees) of Debtor,
Debtor shall take all actions and execute and deliver any and all
instruments, agreements, assignments, certificates and/or documents reasonably required by Secured
Party to collaterally assign any and all of
Debtor’s foreign patent, copyright and trademark registrations and applications
now owned or hereafter acquired to
and in favor of Secured
Party;

 

5.11.
at any time amounts paid by Secured Party
under the Transaction Documents are used to
purchase Collateral, Debtor shall perform all acts that may
be necessary, and otherwise fully cooperate
with Secured Party, to cause (a) any such amounts paid by Secured
Party to be disbursed directly to the
sellers of any such Collateral, (b)
all certificates of title
pertaining to such Collateral (as applicable) to be properly
filed and reissued to reflect Secured
Party’s Lien on such Collateral, and (c) all such reissued
certificates of title to be delivered
to and held by Secured Party; and

 

    	3 

    	 

    

 

5.12.
that it will not use lack of consideration as a defense to its performance of its obligations under this Agreement. Secured Party
may rely conclusively on the continuing warranty, hereby made, that Debtor continues to be benefitted by Secured Party’s
extension of accommodations to Debtor, and Secured Party shall have no duty to inquire into or confirm the receipt of any such
benefits, and this Agreement shall be effective and enforceable by Secured Party without regard to the receipt, nature or value
of any such benefits.

 

6.
Authorized Action by Secured Party. Debtor hereby irrevocably appoints Secured Party as its attorney-in-fact (which appointment
is coupled with an interest) and agrees that Secured Party may perform (but Secured Party shall not be obligated to and shall
incur no liability to Debtor or any third party for failure so to do) any act which Debtor is obligated by this Agreement to perform,
and to exercise such rights and powers as Debtor might exercise with respect to the Collateral, including the right to (a) collect
by legal proceedings or otherwise and endorse, receive and receipt for all dividends, interest, payments, proceeds and other sums
and property now or hereafter payable on or on account of the Collateral; (b) enter into any extension, reorganization, deposit,
merger, consolidation or other agreement pertaining to, or deposit, surrender, accept, hold or apply other property in exchange
for the Collateral; (c) make any compromise or settlement, and take any action Secured Party deems advisable, with respect to
the Collateral, including without limitation bringing a suit in Secured Party’s own name to enforce any Intellectual Property;
(d) endorse Debtor’s name on all applications, documents, papers and instruments necessary or desirable for Secured Party
in the use of any Intellectual Property; (e) grant or issue any exclusive or non-exclusive license under any Intellectual Property
to any person or entity; (f) assign, pledge, sell, convey or otherwise transfer title in or dispose of any Intellectual Property
to any person or entity; (g) cause the Commissioner of Patents and Trademarks, United States Patent and Trademark Office (or as
appropriate, such equivalent agency in foreign countries) to issue any and all patents and related rights and applications to
Secured Party as the assignee of Debtor’s entire interest therein; (h) file a copy of this Agreement with any governmental
agency, body or authority, including without limitation the United States Patent and Trademark Office and, if applicable, the
United States Copyright Office or Library of Congress, at the sole cost and expense of Debtor; (i) insure, process and preserve
the Collateral; (j) pay any indebtedness of Debtor relating to the Collateral; (k) execute and file UCC financing statements and
other documents, certificates, instruments and agreements with respect to the Collateral or as otherwise required or permitted
hereunder; and (l) take any and all appropriate action and execute any and all documents and instruments that may be necessary
or useful to accomplish the purposes of this Agreement; provided, however, that Secured Party shall not exercise any such
powers granted pursuant to clauses (a) through (g) above prior to the occurrence of an Event of Default and shall only exercise
such powers during the continuance of an Event of Default. The powers conferred on Secured Party under this Section 6 are solely
to protect its interests in the Collateral and shall not impose any duty upon it to exercise any such powers. Secured Party shall
be accountable only for the amounts that it actually receives as a result of the exercise of such powers, and neither Secured
Party nor any of its stockholders, directors, officers, managers, employees or agents shall be responsible to Debtor for any act
or failure to act, except with respect to Secured Party’s own gross negligence or willful misconduct. Nothing in this Section
6 shall be deemed an authorization for Debtor to take any action that it is otherwise expressly prohibited from undertaking by
way of other provision of this Agreement.

 

7.
Default and Remedies.

 

7.1.
Default. Debtor shall be deemed in default under this Agreement upon the occurrence of an Event of Default.

 

    	4 

    	 

    

 

7.2.
Remedies. Upon the occurrence of any such Event of Default, Secured Party shall have the rights of a secured creditor under
the UCC, all rights granted by this Agreement and by law, including, without limiting the foregoing, (a) the right to require
Debtor to assemble the Collateral and make it available to Secured Party at a place to be designated by Secured Party, and (b)
the right to take possession of the Collateral, and for that purpose Secured Party may enter upon premises on which the Collateral
may be situated and remove the Collateral therefrom. Debtor hereby agrees that fifteen (15) days’ notice of a public sale
of any Collateral or notice of the date after which a private sale of any Collateral may take place is reasonable. In addition,
Debtor waives any and all rights that it may have to a judicial hearing in advance of the enforcement of any of Secured Party’s
rights and remedies hereunder, including, without limitation, Secured Party’s right following an Event of Default to take
immediate possession of Collateral and to exercise Secured Party’s rights and remedies with respect thereto. Secured Party
may also have a receiver appointed to take charge of all or any portion of the Collateral and to exercise all rights of Secured
Party under this Agreement. Secured Party may exercise any of its rights under this Section 7.2 without demand or notice of any
kind. The remedies in this Agreement, including without limitation this Section 7.2, are in addition to, not in limitation of,
any other right, power, privilege, or remedy, either in law, in equity, or otherwise, to which Secured Party may be entitled.
No failure or delay on the part of Secured party in exercising any right, power, or remedy will operate as a waiver thereof, nor
will any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right
hereunder. All of Secured Party’s rights and remedies, whether evidenced by this Agreement or by any other agreement, instrument
or document shall be cumulative and may be exercised singularly or concurrently.

 

7.3.
Standards for Exercising Rights and Remedies. To the extent that applicable law imposes duties on Secured Party to exercise
remedies in a commercially reasonable manner, Debtor acknowledges and agrees that it is not commercially unreasonable for Secured
Party (a) to fail to incur expenses reasonably deemed significant by Secured Party to prepare Collateral for disposition, (b)
to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law,
to fail to obtain governmental or third party consents for the collection or disposition of Collateral to be collected or disposed
of, (c) to fail to exercise collection remedies against account debtors or other persons obligated on Collateral or to fail to
remove liens or encumbrances on or any adverse claims against Collateral, (d) to exercise collection remedies against account
debtors and other persons obligated on Collateral directly or through the use of collection agencies and other collection specialists,
(e) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral
is of a specialized nature, (f) to contact other persons, whether or not in the same business as Debtor, for expressions of interest
in acquiring all or any portion of the Collateral, (g) to hire one or more professional auctioneers to assist in the disposition
of Collateral, whether or not the Collateral is of a specialized nature, (h) to dispose of Collateral by utilizing Internet sites
that provide for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing
so, or that match buyers and sellers of assets, (i) to dispose of assets in wholesale rather than retail markets, (j) to disclaim
disposition warranties, (k) to purchase insurance or credit enhancements to insure Secured Party against risks of loss, collection
or disposition of Collateral or to provide to Secured Party a guaranteed return from the collection or disposition of Collateral,
or (l) to the extent deemed appropriate by Secured Party, to obtain the services of other brokers, investment bankers, consultants
and other professionals to assist Secured Party in the collection or disposition of any of the Collateral. Debtor acknowledges
that the purpose of this Section is to provide non-exhaustive indications of what actions or omissions by Secured Party would
fulfill Secured Party’s duties under the UCC in Secured Party’s exercise of remedies against the Collateral and that
other actions or omissions by Secured Party shall not be deemed to fail to fulfill such duties solely on account of not being
indicated in this Section. Without limitation upon the foregoing, nothing contained in this Section shall be construed to grant
any rights to Debtor or to impose any duties on Secured Party that would not have been granted or imposed by this Agreement or
by applicable law in the absence of this Section.

 

    	5 

    	 

    

 

7.4.
Marshalling. Secured Party shall not be required to marshal any present or future Collateral for, or other assurances of
payment of, the Obligations or to resort to such Collateral or other assurances of payment in any particular order, and all of
its rights and remedies hereunder and in respect of such Collateral and other assurances of payment shall be cumulative and in
addition to all other rights and remedies, however existing or arising. To the extent that it lawfully may, Debtor hereby agrees
that it will not invoke any law relating to the marshalling of Collateral which might cause delay in or impede the enforcement
of Secured Party’s rights and remedies under this Agreement or under any other instrument creating or evidencing any of
the Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment
thereof is otherwise assured, and, to the extent that it lawfully may, Debtor hereby irrevocably waives the benefits of all such
laws.

 

7.5.
Application of Collateral Proceeds. The proceeds and/or avails of the Collateral, or any part thereof, and the proceeds
and the avails of any remedy hereunder (as well as any other amounts of any kind held by Secured Party at the time of, or received
by Secured Party after, the occurrence of an Event of Default) shall be paid to and applied as follows:

 

(a)
First, to the payment of reasonable costs and expenses, including all amounts expended to preserve the value of the Collateral,
of foreclosure or suit, if any, and of such sale and the exercise of any other rights or remedies, and of all proper fees, expenses,
liability and advances, including reasonable legal expenses and attorneys’ fees, incurred or made hereunder by Secured Party;

 

(b)
Second, to the payment to Secured Party of the amount then owing or unpaid on the Note (to be applied first to accrued interest
and fees and second to outstanding principal) and all amounts owed under any of the other Transaction Documents or other documents
included within the Obligations; and

 

(c)
Third, to the payment of the surplus, if any, to Debtor, its successors and assigns, or to whosoever may be lawfully entitled
to receive the same.

 

In
the absence of final payment and satisfaction in full of all of the Obligations, Debtor shall remain liable for any deficiency.

 

8.
Miscellaneous.

 

8.1.
Notices. Any notice required or permitted hereunder shall be given in the manner provided in the subsection titled “Notices”
in the Purchase Agreement, the terms of which are incorporated herein by this reference.

 

8.2.
Non-waiver. No failure or delay on Secured Party’s part in exercising any right hereunder shall operate as a waiver
thereof or of any other right nor shall any single or partial exercise of any such right preclude any other further exercise thereof
or of any other right.

 

8.3.
Amendments and Waivers. This Agreement may not be amended or modified, nor may any of its terms be waived, except by written
instruments signed by Debtor and Secured Party. Each waiver or consent under any provision hereof shall be effective only in the
specific instances for the purpose for which given.

 

8.4.
Assignment. This Agreement shall be binding upon and inure to the benefit of Secured Party and Debtor and their respective
successors and assigns; provided, however, that Debtor may not sell, assign or delegate rights and obligations hereunder
without the prior written consent of Secured Party.

 

    	6 

    	 

    

 

8.5.
Cumulative Rights, etc. The rights, powers and remedies of Secured Party under this Agreement shall be in addition to all
rights, powers and remedies given to Secured Party by virtue of any applicable law, rule or regulation of any governmental authority,
or the Note, all of which rights, powers, and remedies shall be cumulative and may be exercised successively or concurrently without
impairing Secured Party’s rights hereunder. Debtor waives any right to require Secured Party to proceed against any person
or entity or to exhaust any Collateral or to pursue any remedy in Secured Party’s power.

 

8.6.
Partial Invalidity. If any part of this Agreement is construed to be in violation of any law, such part shall be modified
to achieve the objective of the parties to the fullest extent permitted and the balance of this Agreement shall remain in full
force and effect.

 

8.7.
Expenses. Debtor shall pay on demand all reasonable fees and expenses, including reasonable attorneys’ fees and expenses,
incurred by Secured Party in connection with the custody, preservation or sale of, or other realization on, any of the Collateral
or the enforcement or attempt to enforce any of the Obligations which are not performed as and when required by this Agreement.

 

8.8.
Entire Agreement. This Agreement, the Note, and the other Transaction Documents, taken together, constitute and contain
the entire agreement of Debtor and Secured Party with respect to this particular matter and supersede any and all prior agreements,
negotiations, correspondence, understandings and communications between the parties, whether written or oral, respecting the subject
matter hereof.

 

8.9.
Governing Law; Venue. Except as otherwise specifically set forth herein, the parties expressly agree that this Agreement
shall be governed solely by the laws of the State of Utah, without giving effect to the principles thereof regarding the conflict
of laws; provided, however, that enforcement of Secured Party’s rights and remedies against the Collateral as provided
herein will be subject to the UCC. The provisions set forth in the Purchase Agreement to determine the proper venue for any disputes
are incorporated herein by this reference.

 

8.10.
Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO DEMAND THAT ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE RELATIONSHIPS OF THE PARTIES
HERETO BE TRIED BY JURY. THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE
STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH PARTY HERETO ACKNOWLEDGES THAT IT IS KNOWINGLY AND VOLUNTARILY WAIVING ITS RIGHT
TO DEMAND TRIAL BY JURY.

 

8.11.
Purchase Agreement; Arbitration of Disputes. By executing this Agreement, each party agrees to be bound by the terms, conditions
and general provisions of the Purchase Agreement and the other Transaction Documents, including without limitation the Arbitration
Provisions (as defined in the Purchase Agreement) set forth as an exhibit to the Purchase Agreement.

 

8.12.
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original and all
of which together shall constitute one instrument. Any electronic copy of a party’s executed counterpart will be deemed
to be an executed original.

 

8.13.
Further Assurances. Debtor shall do and perform, or cause to be done and performed, all such further acts and things, and
shall execute and deliver all such other agreements, certificates, instruments and documents, as Secured Party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

8.14.
Time of the Essence. Time is expressly made of the essence with respect to each and every provision of this Agreement.

 

[Remainder
of page intentionally left blank; signature page follows]

 

    	7 

    	 

    

 

IN
WITNESS WHEREOF, Secured Party and Debtor have caused this Agreement to be executed as of the day and year first above written.

 

	 	SECURED PARTY: 
	 	 	 	 	 
	 	Iliad Research and Trading, L.P. 
	 	 	 	 	 
	 	By:	Iliad Management, LLC, its General Partner  
	 	 	 	 	 
	 	 	By:	Fife Trading, Inc., its Manager 
	 	 	 	 	 
	 	 	 	By:	
	 	 	 	 	John
    M. Fife, President

 

	 	DEBTOR:
	 	 	 
	 	MGT MINING ONE, INC.
	 	 	 
	 	By:	                      
	 	Name:	 
	 	Title:	 

 

[Signature
Page to Security Agreement]

 

    	 

    	 

    

 

SCHEDULE
A

TO
SECURITY AGREEMENT

 

All
right, title, interest, claims
and demands
of Debtor in and to all of Debtor’s assets owned as of the date hereof
and/or acquired by Debtor hereafter, including without limitation, the following property:

 

1.
All customer accounts, insurance contracts, and clients underlying such insurance contracts.

 

2.
All goods and equipment now owned or hereafter
acquired, including, without limitation, all laboratory equipment, Bitcoin or other
cryptocurrency mining equipment, computer equipment, office equipment, machinery, fixtures, vehicles, and any
interest in any of the foregoing,
and all attachments, accessories, accessions, replacements, substitutions, additions, and
improvements to any of the foregoing, wherever located;

 

3.
All inventory now owned or hereafter
acquired, including, without limitation, all merchandise,
raw materials, parts, supplies, packing and shipping materials, work in process
and finished products including such inventory as is temporarily out of Debtor’s
custody or possession or in transit
and including any returns upon any accounts
or other proceeds, including insurance
proceeds, resulting from the sale or
disposition of any of the
foregoing and any documents of title
representing any of the above, and Debtor’s
books relating to any of the foregoing;

 

4.
All accounts receivable, contract rights, general intangibles, healthcare insurance receivables,
payment intangibles and commercial tort claims, now owned
or hereafter acquired, including, without
limitation, all patents, patent rights and patent
applications (including without limitation, the inventions and improvements described
and claimed therein, and (a) all reissues, divisions, continuations, renewals, extensions
and continuations-in-part thereof, (b) all
income, royalties, damages, proceeds
and payments now and hereafter due or
payable under or with
respect thereto, including, without limitation, damages and payments
for past or future infringements thereof,
(c) the right to sue for past,
present and future infringements thereof, and (d) all
rights corresponding thereto throughout the world), trademarks and service
marks (and applications and registrations
therefor), inventions, discoveries, copyrights and mask works (and applications and
registrations therefor), trade names, trade styles, software and computer programs
including source code, trade secrets, methods, published and unpublished works
of authorship, processes, know how, drawings, specifications, descriptions, and all memoranda,
notes, and records with respect to any research
and development, goodwill, license agreements, information, any and all other proprietary
rights, franchise agreements, blueprints, drawings, purchase orders, customer lists, route lists, infringements, claims, computer
programs, computer disks, computer tapes, literature, reports, catalogs, design rights, income tax refunds,
payments of insurance and rights
to payment of any kind and whether
in tangible or intangible
form or contained on magnetic media
readable by machine together with all such magnetic media, and all
rights corresponding to all of
the foregoing throughout the world,
now owned and existing or hereafter
arising, created or acquired;

 

5.
All now existing and hereafter
arising accounts, contract rights, royalties, license rights and all other forms
of obligations owing to Debtor arising
out of the sale or lease of goods,
the licensing of technology or
the rendering of services by Debtor
(subject, in each case, to the contractual
rights of third parties to require
funds received by Debtor to be
expended in a particular manner), whether
or not earned by performance, and any
and all credit insurance, guaranties, and other
security therefor, as well as all merchandise
returned to or reclaimed by Debtor
and Debtor’s books relating to any of the foregoing;

 

    	 

    	 

    

 

6.
All cryptocurrency,
cryptocurrency wallets or accounts, documents, cash, deposit accounts, letters of credit,
letter of credit rights, supporting obligations,
certificates of deposit, instruments, chattel
paper, electronic chattel paper, tangible chattel paper and
investment property, including, without limitation, all securities, whether certificated
or uncertificated, security entitlements,
securities accounts, commodity contracts and commodity accounts, and all financial
assets held in any securities account
or otherwise, wherever located, now owned or hereafter
acquired and Debtor’s books relating to the
foregoing;

 

7.
All other assets, goods
and personal property of Debtor, wherever
located, whether tangible or intangible,
and whether now owned or hereafter acquired;
and

 

8.
Any and all claims,
rights and interests in any of
the above and all substitutions for, additions
and accessions to and proceeds and products
thereof, including, without limitation, insurance, condemnation, requisition or
similar payments and the proceeds thereof.

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