Blockchain Stock News: lHIVE Blockchain (TSXV: HIVE) (OTCQX: HVBTF) Announces >20% Expansion of Ethereum Mining Facility in Sweden
Zug, Switzerland and Vancouver, Canada - March 6, 2020 (Investorideas.com Newswire) HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTCQX:HVBTF) (the "Company" or "HIVE") is pleased to announce that it has initiated an expansion of its flagship GPU-based digital currency mining facility in Sweden. The expansion is anticipated to result in a more than 20% increase in the facility's Ethereum mining production capabilities while improving its gross mining margin profile by leveraging the existing fixed cost base at the facility.
HIVE's facility in northern Sweden currently operates GPU mining rigs powered entirely by green energy via renewable hydroelectricity, consistent with the Company's green energy strategy. The expansion will see the Sweden facility's mining capacity increase by more than 20% in two phases, expected to be completed within the next six months. The Company will leverage its existing relationships with local suppliers, including energy suppliers and facility operator Blockbase Mining Group, with no anticipated increase in staffing and only a 10% expansion in its facility size required.
Capital expenditures, including additional GPU hardware, are expected to cost approximately $200,000 per additional megawatt (MW) of capacity, and is anticipated to be paid from existing cash on the Company's balance sheet. This is significantly less than the approximate $3.2 million per MW the Company paid for the original development of the Sweden facility two years ago to its original service provider.
"This is an opportune time for us to expand our Ethereum mining capacity and gross mining margin profile at a relatively low capital investment," said HIVE's Interim Executive Chairman Frank Holmes. "We have full visibility into our Sweden facility build out costs after we assumed 100% control of our operations last year and entered into direct agreements with suppliers and service providers. Since that point, we have improved the efficiency of our mining rigs and significantly lowered our operating and maintenance expenses in Sweden.
"Additionally, we strongly believe in the future of Ethereum mining and are therefore strengthening and maximizing our core operation with this project. Mining market conditions for Ethereum have improved significantly since mid-December, with coin prices and block rewards up and mining hash rate stable.
"Our decision to utilize GPUs as opposed to ASICs to mine Ethereum is for two reasons," concluded Mr. Holmes. "It is anticipated the Ethereum network will implement Progressive Proof of Work this year, which would effectively eliminate ASIC mining on the network thereby increasing the relative efficiency of GPU mining facilities. Additionally, GPUs provide us with flexibility to identify and focus these computing resources on other existing and new cryptocurrencies if they become more profitable to mine, or for other high efficiency computing applications."
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 as well as cloud-based ASIC-based capacity which produces newly minted digital currencies like Bitcoin. 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
For further information please contact:
Frank Holmes
Tel: (604) 664-1078
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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