In underground sensor networks, electronic magnetic waves undergo severe fading due to the challenging environment. Magnetic-induction (MI) communication is a promising alternative physical layer technique for underground sensor networks. In this paper, we solve the intercoil crosstalk in magnetic-induction multiple-input multiple-output (MI MIMO) communication and investigate the channel capacity for underground MI MIMO wireless communication. Firstly, considering mutual induction between each two coils, we analyze the capacity of magnetic-induction channel. Secondly, the channel model of magnetic-induction multiple-input single-output (MISO) is introduced and a novel coil deployment method is proposed to reduce the crosstalk in MI MISO communication. Finally, the capacity of MI MISO communication and MI MIMO communication is deduced by the proposed coil deployment method. Simulation shows that the channel capacity would increase significantly in high SNR regime for underground MI MIMO communication.