VANCOUVER, June 2, 2020 /CNW/ - HIVE Blockchain Technologies
Ltd. (TSX.V:HIVE) (OTCQX:HVBTF) (FSE: HBF) (the "Company" or
"HIVE") is pleased to announce that it has entered into new
agreements, effective June 1, 2020,
for hosting and management of its GPU-based high performance
computing equipment in Iceland
which are anticipated to significantly improve the profitability
profile of operations in the country.
The agreements are anticipated to result in an approximately 50%
reduction in monthly facilities and operations costs vs HIVE's
prior service provider agreement, an upgrade in colocation
facilities, and improved efficiency and output of HIVE's GPU
operations.
"Our assumption of direct control of our operations in
Iceland, and these new hosting and
management agreements, are expected to significantly lower our cost
to mine Ethereum or other digital currencies, and improve mining
performance from our GPUs, thereby increasing our gross mining
margins in Iceland," explained
Frank Holmes, Interim Executive
Chairman of HIVE. "Further, we now have full control of our
operations and destiny globally. This is an important step in our
approximately 18-month process to increase transparency,
accountability and profitability across our mining operations. We
wish to thank Genesis Mining for their assistance in our transition
processes in Iceland and in
Sweden last fall, and we look
forward to providing value to them as a HIVE shareholder along with
our other shareholders."
Under the first agreement, a subsidiary of HIVE has engaged
Advania Data Centers ehf under an initial two-year agreement for
hosting and related colocation services for its approximately 4,000
GPU-based mining rigs, including hosting, power usage, shelving,
datacenter operations and maintenance, and security. The annual
service, power and Internet access availability goal is 99.8%.
Initial power provided will be for approximately 3.45 megawatts,
though HIVE has the option to expand its operations by
approximately 40%. The combination of competitively priced, 100%
sustainable green energy, an optimized climate for data centers and
Advania's innovative data center design enables direct air cooling
to mitigate power consumption for cooling.
Under the second agreement, HIVE has expanded its previously
announced relationship with Blockbase Group DWC-LLC ("Blockbase")
to provide software services for and optimize effectiveness of its
GPUs in Iceland. Blockbase is
already providing similar services for HIVE's flagship GPU-based
high performance computing facility in Sweden.
The timing for the transition of software management of HIVE's
GPU-based miners from Genesis to Blockbase will depend on travel
and related restrictions related to COVID-19.
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 digital
currency mining facilities in Canada, Sweden, and Iceland which produce newly minted digital
currencies like Bitcoin and 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
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. The information in this news release that are
forward-looking information, include: the new agreements for
hosting and management of the Company's computing equipment in
Iceland; the anticipated
significant improvement to the profitability profile of the
Company's operations in Iceland,
including quantum estimates in reduction in monthly facility and
operation costs, upgraded colocation facilities, improved
efficiency and output of GPU operations and increase in gross
mining margins; the timing for the transition of software
management of HIVE's GPU-based miners from Genesis to Blockbase;
and the intentions, plans and future actions of the
Company.
This forward-looking information is based on reasonable
assumptions and estimates of management of the Company at the time
it was made, and involves known and unknown risks, uncertainties
and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking information. Such factors include, among
others: the COVID 19 crisis; the Company may not achieve expected
improvement in profitability or gross margins for its operations in
Iceland in the quantum as
currently anticipated, or at all; the Company may not reduce
monthly facility and operations costs, or upgrade colocation
facilities or improve efficiency and output of GPU operations as
currently anticipated, or at all; the transition of miners from
Genesis to Blockbase software management at Advania's datacenters
may take longer than anticipated; the new agreements for hosting
and management of the Company's assets in Iceland may not lead to any economic benefits
to the Company; the digital currency market; the ability to
successfully mine digital currency; revenue may not increase as
currently anticipated, or at all; it may not be possible to
profitably liquidate the current digital currency inventory, or at
all; a decline in digital currency prices may have a significant
negative impact on operations; the volatility of digital currency
prices; the Company may never realize more efficient operations, a
lower cost structure, or greater flexibility in operation; risks
relating to the global economic climate; dilution; and other
related risks as more fully set out in the Company's continuous
disclosure record filed at www.sedar.com. The Company has also
assumed that the new agreements for hosting and management of the
Company's computing equipment in Iceland will lead to increased profitability
and gross mining margins; and that no significant events occur
outside of the Company's normal course of business. Although the
Company has attempted to identify important factors that could
cause actual results to differ materially, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
information. The Company undertakes no obligation to revise or
update any forward -looking information other than as required by
law.
SOURCE HIVE Blockchain Technologies Ltd.