VANCOUVER, BC, November 6, 2020 / CNW / – HIVE Blockchain Technologies Ltd. (TSXV: HIVE) (OTCQX: HVBTF) (FSE: HBF) (the “Company” or “HIVE”) is pleased to announce the purchase and immediate hashing of 1,240 MicroBT miners WhatsMiner M30S with an aggregate operational hash power of 113 Petahash per second (PH / s) as it continues to expand its bitcoin mining operations.
The cost for these M30S miners was approx USD 2,715 per unit, or 3.4 million dollars, financed through the Company’s cash.
New Bitcoin miners
With the addition of these 1,240 MicroBT WhatsMiner M30S miners, HIVE’s aggregate operating hash rate nearly doubles from 116 PH / s to 229 PH / s.
This new equipment, which is already electrified, will be hosted by DMG Blockchain Solutions Inc. (TSX.V: DMGI) (“DMG”) at their facility located in Christina Lake, British Columbia. DMG COO Sheldon Bennett commented, “DMG is thrilled to welcome HIVE Blockchain as a customer and partner. Hive has continued to demonstrate leadership and vision in the mining industry.”
“The company’s vision is to achieve an aggregate operational hash power of 1,000 PH / s within the next 12 months,” he said. Frank Holmes, Interim Executive President of HIVE.
As previously mentioned, the COVID-19 pandemic continues to impact the logistics and supply of miners from Asia. Today’s announcement is part of our ongoing strategy to increase our bitcoin mining capacity. HIVE intends to continue using cash flow to make opportunistic investments in next generation mining equipment that can deliver positive gross mining margins.
HIVE miners have bought since the beginning of the year:
April 2020 – 750 S17 + miners (73 TH / s) were bought by Bitmain and were deployed.
June 2020 – 1,090 T17 + miners (58 Th / s) were bought by Bitmain and distributed.
June 2020 – 200 S17e miners (60 TH / s) were purchased through a broker and due to Bitmain production delays we are still awaiting delivery of more than half of the miners.
July 2020 – 156 T17 miners (42 TH / s) were bought through a broker and were employed.
Ethereum Mining update
HIVE continues to be one of the largest publicly traded Ethereum miners in the world. As a result of this substantial footprint, the Company continues to spend money aggressively to upgrade the efficiency of our GPU chips to mine Ethereum in the cloud.
HIVE mined more than 32,000 Ethereum in the quarter from From 1 July to 30 September 2020, based on the Company’s unaudited preliminary results. This represents a significant sequential increase from the approximately 25,000 Ethereum mined in HIVE’s fiscal first quarter ended June 30, 2020and an increase of more than 50% over the same period last year.
The increase was driven by massive demand for Ethereum transactions, including stablecoins and DeFi applications1, which resulted in record highs in Ethereum transaction fees paid to miners. Many investors use smart contracts to execute DeFi stocks such as staking, pooling and lending, and such investors have paid higher costs to make sure their trades go through.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. is a growth-oriented TSX.V listed company building a bridge from the blockchain industry to traditional capital markets. HIVE owns state-of-the-art green energy data center facilities in Canada, Sweden, is Iceland which continuously produce minted digital currencies such as Bitcoin and Ethereum on the cloud. Our implementations provide shareholders with exposure to the operating margins of digital currency mining and a cryptocurrency portfolio.
For more information and to register for the HIVE mailing list, visit www.HIVEblockchain.com. Follow @HIVEblockchain on Twitter and subscribe to HIVE YouTube channel.
On behalf of HIVE Blockchain Technologies Ltd.
Interim Executive Chairman
Neither the TSX Venture Exchange nor its regulatory service provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Except for statements of historical facts, this press release contains “forward-looking information” within the meaning of applicable Canadian securities law which is based on expectations, estimates and projections as of the date of this press release. “Forward-looking information” in this press release includes information on the purchase and distribution of newly purchased mining equipment; achievement of the aggregate operational hashpower of 1000 PH / s within the next 12 months; potential further improvements to profitability and efficiency in mining operations; potential for the long-term growth of the Company and the business objectives and objectives of the Company.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, a decrease in the price of the digital currency, the volume of transaction activity or in general, profitability of digital currency mining; further improvements in profitability and efficiency may not be realized; the Company may not increase its operating hashpower as currently planned, or at all; the digital currency market; the Company’s ability to successfully mine digital currency; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company’s operations; the volatility of prices of digital currencies; and other related risks as set forth more fully in the dated Company’s Filing Statement and other documents disclosed based on Company records on www.sedar.com.
The forward-looking information in this press release reflects the Company’s current expectations, assumptions and / or beliefs based on information currently available to the Company. In relation to the forward-looking information contained in this press release, the Company has formulated hypotheses on current profitability in digital currency mining (including prices and current transaction volume); the Company’s ability to expand its operational power; profitable use of the Company’s assets in the future; the Company’s ability to profitably liquidate its digital currency inventory as required; historical prices of digital currencies and the Company’s ability to mine digital currencies will be consistent with historical prices; and there will be no regulations or laws that will prevent the Company from carrying out its business. The Company has also assumed that no significant events will occur outside the normal course of the Company’s business. Although the Company believes that forward-looking information assumptions are reasonable, forward-looking information is not a guarantee of future performance and therefore undue reliance should not be placed on such information due to the inherent uncertainty contained therein.
SOURCE HIVE Blockchain Technologies Ltd.
For more information: Frank Holmes, Tel: (604) 664-1078