HIVE Blockchain Completes Acquisition of 30 MW Cryptocurrency Operation in Canada
Wed April 8, 2020
VANCOUVER, April 8, 2020 /CNW/ - HIVE Blockchain Technologies Ltd. (HVBTF) (TSX.V:HIVE) (OTCQX:HVBTF) (the "Company" or "HIVE"
is pleased to announce that it has completed its previously announced acquisition (the "Acquisition" of 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. ("Cryptologic" .
The purchase price of approximately C$4.0 million was satisfied through C$1,000,000 in cash, being the cash portion of the purchase price, C$956,230.60 representing the estimated closing working capital comprised substantially of prepaid and deposits less a holdback amount and the issuance of 15,000,000 common shares ("HIVE Shares" to Cryptologic at a deemed price of C$0.20 per HIVE Share. In addition, HIVE will invest at least C$3.0 million in new cryptocurrency mining equipment for the Facility. Cryptologic now owns approximately 4% of HIVE's basic common shares, with the HIVE Shares subject to customary resale and transfer restrictions.
"We're extremely pleased to have completed the acquisition of this Facility," said Frank Holmes, Interim Executive Chairman of HIVE. "Multiple factors make Quebec a very attractive location for us including geographic diversification and competitive costs for green energy, skilled labour and taxes.
"The acquisition provides us direct control of our destiny, including significant capacity for expansion and flexibility for our future operations. To that end, we have exercised an option to extend the term of the Facility lease to November 2025, and we plan to invest in next generation SHA-256 miners to increase the operating efficiency of the Facility and prepare it for the upcoming halving of Bitcoin rewards. Additionally, we are currently investigating the potential to host third-party miners to maximize utilization of the Facility's power capacity.
"We also want to extend our appreciation to the Board of Cryptologic, who have expressed confidence in the vision and direction of HIVE by becoming a significant shareholder. Additionally, we also appreciate the cooperation of Cryptologic's Chief Operating Officer, Paul Leggett and VP Finance, Joshua Lebovic, who have helped facilitate a smooth transition during the challenging period that the world is experiencing related to COVID-19."
The fully operational Facility features electricity costs of approximately US$0.04/kWh 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 costs, these miners generate positive gross mining margins under current market conditions. However, the value of the Acquisition is based primarily on the Facility's power capacity and cryptocurrency mining assets. 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 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 planning to expand its operation in Sweden to increase its mining capacity by approximately 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/17832559-hive-blo...-in-canada
Wed April 8, 2020
VANCOUVER, April 8, 2020 /CNW/ - HIVE Blockchain Technologies Ltd. (HVBTF) (TSX.V:HIVE) (OTCQX:HVBTF) (the "Company" or "HIVE"
is pleased to announce that it has completed its previously announced acquisition (the "Acquisition" of 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. ("Cryptologic" . The purchase price of approximately C$4.0 million was satisfied through C$1,000,000 in cash, being the cash portion of the purchase price, C$956,230.60 representing the estimated closing working capital comprised substantially of prepaid and deposits less a holdback amount and the issuance of 15,000,000 common shares ("HIVE Shares"
to Cryptologic at a deemed price of C$0.20 per HIVE Share. In addition, HIVE will invest at least C$3.0 million in new cryptocurrency mining equipment for the Facility. Cryptologic now owns approximately 4% of HIVE's basic common shares, with the HIVE Shares subject to customary resale and transfer restrictions. "We're extremely pleased to have completed the acquisition of this Facility," said Frank Holmes, Interim Executive Chairman of HIVE. "Multiple factors make Quebec a very attractive location for us including geographic diversification and competitive costs for green energy, skilled labour and taxes.
"The acquisition provides us direct control of our destiny, including significant capacity for expansion and flexibility for our future operations. To that end, we have exercised an option to extend the term of the Facility lease to November 2025, and we plan to invest in next generation SHA-256 miners to increase the operating efficiency of the Facility and prepare it for the upcoming halving of Bitcoin rewards. Additionally, we are currently investigating the potential to host third-party miners to maximize utilization of the Facility's power capacity.
"We also want to extend our appreciation to the Board of Cryptologic, who have expressed confidence in the vision and direction of HIVE by becoming a significant shareholder. Additionally, we also appreciate the cooperation of Cryptologic's Chief Operating Officer, Paul Leggett and VP Finance, Joshua Lebovic, who have helped facilitate a smooth transition during the challenging period that the world is experiencing related to COVID-19."
The fully operational Facility features electricity costs of approximately US$0.04/kWh 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 costs, these miners generate positive gross mining margins under current market conditions. However, the value of the Acquisition is based primarily on the Facility's power capacity and cryptocurrency mining assets. 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 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 planning to expand its operation in Sweden to increase its mining capacity by approximately 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/17832559-hive-blo...-in-canada
