HIVE Blockchain Doubles Global Mining Capacity wit
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Posted On: 03/30/2020 8:53:17 AM
HIVE Blockchain Doubles Global Mining Capacity with Acquisition of 30 MW Bitcoin Operation in Canada
Mon March 30, 2020
VANCOUVER, March 30, 2020 /CNW/ - HIVE Blockchain Technologies Ltd. (HVBTF) (TSX.V:HIVE) (OTCQX:HVBTF) (the "Company" or "HIVE"
is pleased to announce that it has signed a definitive agreement (the "Agreement" to acquire a dedicated cryptocurrency mining operation with access to 30 megawatts ("MW" of low cost green power at a leased facility located in Lachute, Quebec (the "Facility" from Cryptologic Corp. for a total purchase price of approximately C$4.0 million (the "Acquisition" . Pursuant to the Agreement, HIVE will satisfy the purchase price through the issuance of 15,000,000 common shares ("HIVE Shares" to Cryptologic at a deemed price of C$0.20 per HIVE Share and C$1,000,000 in cash, subject to a working capital adjustment.
"This is an important strategic acquisition for HIVE that diversifies our business significantly, and we are making it at an opportune time at an attractive valuation for our shareholders," said Frank Holmes, Interim Executive Chairman of HIVE. "The Acquisition provides us with an advanced, operating Bitcoin mining facility ready to transition to next generation mining hardware with access to some of the lowest cost electricity on the planet. The cost of US$95,000 per MW is less than half the industry standard build cost per MW.
"Additionally, the Acquisition provides us with direct control of our destiny, including significant capacity for expansion and flexibility for our future operations," added Mr. Holmes. "Along with our recent assumption of full control of our Swedish operations and planned expansion there, and the recent suspension of our cloud mining operations, it is consistent with our focus over the past 18 months to strengthen our operational control of HIVE including improving transparency, accountability and financial controls, and improving our operational efficiency including optimizing our cost structure to set the foundations for profitable growth. In addition, it is in line with the Company's green energy strategy as the Facility is powered entirely by renewable hydroelectricity, thereby maintaining our 100% green energy powered operations globally."
The Acquisition will more than double HIVE's total available power capacity globally to approximately 50 MW, placing it among the largest of any publicly-listed cryptocurrency miner, and provide significant diversification to the Company's business both geographically and by blockchain network. HIVE's European GPU-mining operations are currently mining on the Ethereum network, while the Facility in Quebec is able to support miners on the Bitcoin network.
The fully operational, state-of-the-art Facility features US$0.04/kWh electricity costs and its primary assets include 30 MW of HVAC and electrical infrastructure that is unique to cryptocurrency mining, triple redundancy systems for power and internet connectivity, operational staff, and approximately 14,000 Bitmain S9 miners that are currently installed, which provide about 173 Petahashes of SHA 256 Bitcoin mining computing power and utilize a portion of the Facility's power capacity. Due to the Facility's low electricity prices, these miners generate positive gross mining marginsi under current market conditions. However, the value of the Acquisition is based primarily on the Facility's power capacity and cryptocurrency mining assets. HIVE intends to invest in next generation miners and potentially act as host for third-party miners to maximize utilization of the Facility's power capacity. The Company also anticipates exercising an option to extend the term of the Facility lease for an additional five years commencing on or about the closing of the transaction.
The Acquisition has been approved by HIVE's Board of Directors and the board of directors and the shareholders of Cryptologic, and remains subject to customary closing conditions including receipt of regulatory approvals. The Acquisition is expected to close on the date that is the later of: (a) Friday April 3, 2020; and (b) the date that is two business days after the date that the TSX Venture Exchange provides conditional approval of the transaction. Following the Acquisition, Cryptologic will own approximately 4% of HIVE's common shares. The HIVE Shares are subject to customary resale and transfer restrictions.
HIVE is currently one of the world's largest public miners on the Ethereum blockchain and this acquisition places HIVE among the world's larger publicly-listed miners of Bitcoin. The newly acquired Bitcoin mining facility in Quebec diversifies the Company's existing portfolio, which includes a facility in Sweden that comprises the bulk of HIVE's Ethereum-focused GPU mining operations and a smaller Ethereum-focused mining facility in Iceland. As announced recently, HIVE is expanding its operation in Sweden by 20% over the next two quarters.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. is a growth oriented, TSX.V-listed company building a bridge from the blockchain sector to traditional capital markets. HIVE owns state-of-the-art GPU-based digital currency mining facilities in Iceland and Sweden, which produce newly minted digital currencies like Ethereum continuously. Our deployments provide shareholders with exposure to the operating margins of digital currency mining as well as a growing portfolio of crypto-coins.
For more information and to register to HIVE's mailing list, please visit www.HIVEblockchain.com. Follow @HIVEblockchain on Twitter and subscribe to HIVE's YouTube channel.
On Behalf of HIVE Blockchain Technologies Ltd.
"Frank Holmes"
Interim Executive Chairman
https://seekingalpha.com/pr/17821989-hive-blo...eration-in
Mon March 30, 2020
VANCOUVER, March 30, 2020 /CNW/ - HIVE Blockchain Technologies Ltd. (HVBTF) (TSX.V:HIVE) (OTCQX:HVBTF) (the "Company" or "HIVE"
is pleased to announce that it has signed a definitive agreement (the "Agreement" to acquire a dedicated cryptocurrency mining operation with access to 30 megawatts ("MW" of low cost green power at a leased facility located in Lachute, Quebec (the "Facility" from Cryptologic Corp. for a total purchase price of approximately C$4.0 million (the "Acquisition" . Pursuant to the Agreement, HIVE will satisfy the purchase price through the issuance of 15,000,000 common shares ("HIVE Shares" to Cryptologic at a deemed price of C$0.20 per HIVE Share and C$1,000,000 in cash, subject to a working capital adjustment. "This is an important strategic acquisition for HIVE that diversifies our business significantly, and we are making it at an opportune time at an attractive valuation for our shareholders," said Frank Holmes, Interim Executive Chairman of HIVE. "The Acquisition provides us with an advanced, operating Bitcoin mining facility ready to transition to next generation mining hardware with access to some of the lowest cost electricity on the planet. The cost of US$95,000 per MW is less than half the industry standard build cost per MW.
"Additionally, the Acquisition provides us with direct control of our destiny, including significant capacity for expansion and flexibility for our future operations," added Mr. Holmes. "Along with our recent assumption of full control of our Swedish operations and planned expansion there, and the recent suspension of our cloud mining operations, it is consistent with our focus over the past 18 months to strengthen our operational control of HIVE including improving transparency, accountability and financial controls, and improving our operational efficiency including optimizing our cost structure to set the foundations for profitable growth. In addition, it is in line with the Company's green energy strategy as the Facility is powered entirely by renewable hydroelectricity, thereby maintaining our 100% green energy powered operations globally."
The Acquisition will more than double HIVE's total available power capacity globally to approximately 50 MW, placing it among the largest of any publicly-listed cryptocurrency miner, and provide significant diversification to the Company's business both geographically and by blockchain network. HIVE's European GPU-mining operations are currently mining on the Ethereum network, while the Facility in Quebec is able to support miners on the Bitcoin network.
The fully operational, state-of-the-art Facility features US$0.04/kWh electricity costs and its primary assets include 30 MW of HVAC and electrical infrastructure that is unique to cryptocurrency mining, triple redundancy systems for power and internet connectivity, operational staff, and approximately 14,000 Bitmain S9 miners that are currently installed, which provide about 173 Petahashes of SHA 256 Bitcoin mining computing power and utilize a portion of the Facility's power capacity. Due to the Facility's low electricity prices, these miners generate positive gross mining marginsi under current market conditions. However, the value of the Acquisition is based primarily on the Facility's power capacity and cryptocurrency mining assets. HIVE intends to invest in next generation miners and potentially act as host for third-party miners to maximize utilization of the Facility's power capacity. The Company also anticipates exercising an option to extend the term of the Facility lease for an additional five years commencing on or about the closing of the transaction.
The Acquisition has been approved by HIVE's Board of Directors and the board of directors and the shareholders of Cryptologic, and remains subject to customary closing conditions including receipt of regulatory approvals. The Acquisition is expected to close on the date that is the later of: (a) Friday April 3, 2020; and (b) the date that is two business days after the date that the TSX Venture Exchange provides conditional approval of the transaction. Following the Acquisition, Cryptologic will own approximately 4% of HIVE's common shares. The HIVE Shares are subject to customary resale and transfer restrictions.
HIVE is currently one of the world's largest public miners on the Ethereum blockchain and this acquisition places HIVE among the world's larger publicly-listed miners of Bitcoin. The newly acquired Bitcoin mining facility in Quebec diversifies the Company's existing portfolio, which includes a facility in Sweden that comprises the bulk of HIVE's Ethereum-focused GPU mining operations and a smaller Ethereum-focused mining facility in Iceland. As announced recently, HIVE is expanding its operation in Sweden by 20% over the next two quarters.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. is a growth oriented, TSX.V-listed company building a bridge from the blockchain sector to traditional capital markets. HIVE owns state-of-the-art GPU-based digital currency mining facilities in Iceland and Sweden, which produce newly minted digital currencies like Ethereum continuously. Our deployments provide shareholders with exposure to the operating margins of digital currency mining as well as a growing portfolio of crypto-coins.
For more information and to register to HIVE's mailing list, please visit www.HIVEblockchain.com. Follow @HIVEblockchain on Twitter and subscribe to HIVE's YouTube channel.
On Behalf of HIVE Blockchain Technologies Ltd.
"Frank Holmes"
Interim Executive Chairman
https://seekingalpha.com/pr/17821989-hive-blo...eration-in
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