ZUG, Switzerland and VANCOUVER, March 6, 2020 /CNW/ - 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 hydro
electricity, 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 access to
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
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.
Forward-Looking Information
Except for the statements of historical fact, this news
release contains "forward-looking information" within the meaning
of the applicable Canadian securities legislation that is based on
expectations, estimates and projections as at the date of this news
release. "Forward-looking information" in this news release
includes, but is not limited to, statements regarding the
anticipated expansion of the Company's ethereum mining facility in
Sweden, including anticipated
quantum increase in MW capacity and related ethereum mining
production capabilities and gross mining margin, anticipated timing
of this expansion within six months, the expectation of no
significant increase in staffing and only 10% expansion in facility
size, quantum of capital expenditures required; the future of
ethereum mining; the anticipated ethereum network implementation of
Progressive Proof of Work this year, and the anticipated
elimination of ASIC mining on the network thereby increasing the
relative efficiency of GPU mining facilities; the potential use of
the Company's GPUs on other existing and new cryptocurrencies or
for other high efficiency computing applications; the
anticipated reduction in the Company's operating and maintenance
costs in Sweden; and, the
Company's future plans and opportunities.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, the Company may not complete its planned
expansion of its ethereum mining facility in Sweden as currently anticipated, or at all;
the Company may not realize anticipated benefits from the expanded
mining facility in Sweden in the
quantum anticipated, or at all; the expansion may required capital
expenditures significantly in excess of the amounts currently
anticipated; Progressive Proof of Work may not be implemented or
lead to any advantages (elimination of ASIC mining on the network)
as currently anticipated, or at all; the facilities in Sweden may never be used to mine new
cryptocurrencies or for other high efficiency computing
applications; the Company may never realize more efficient
operations, a lower cost structure, or greater flexibility in
operations; and other related risks as more fully set out in the
Filing Statement of the Company dated September 13, 2017 and other documents disclosed
under the Company's filings at www.sedar.com.
The forward-looking information in this news release reflects
the current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about the positive
effects of recent upgrades and increased minted Ether coins. The
Company has also assumed that no significant events occur outside
of the Company's normal course of business. Although the Company
believes that the assumptions inherent in the forward-looking
information are reasonable, forward-looking information is not a
guarantee of future performance and accordingly undue reliance
should not be put on such information due to the inherent
uncertainty therein.
SOURCE HIVE Blockchain Technologies Ltd.