HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (Nasdaq:HVBT)
(FSE:HBF) (the “Company” or “HIVE”) is excited to announce that its
global operations are producing a BTC equivalent operational hash
rate of 1.675 EH/s from its Bitcoin and Ethereum operations. Based
on current Ethereum and Bitcoin prices, we are generating daily
income of $550,000, which translates to an annual run rate of $200
million. Estimated annual run rate operating and overhead costs are
$25 million. In addition HIVE continues to strengthen its miner
purchasing pipeline with the purchase of 4,000 next generation
miners with an aggregate operating hash power of 272 PH/s.
Global Hash Rate
With the addition of the 3,019 high performance
Bitcoin miners that was announced on July 12, 2021, and additional
miners that have been received since as part of our miner purchase
program, we currently have a total bitcoin operating hash rate of
925 Petahash per second (PH/s). This puts us right on track of our
previous projections of reaching 1 Exahash per second (EH/s) of
Bitcoin operating hash rate in August. We currently project
tripling our operational Bitcoin mining rate from here by the end
of calendar year 2021, supported by today’s announcement of new
miner purchases.
From our Ethereum production we currently have
an operating hash rate of 3,383 Gigahash per second (GH/s). A
number of our dedicated followers and analysts have been converting
this Ethereum hash rate into a Bitcoin equivalent hash rate. Based
on these calculations our current Ethereum hash rate is the
equivalent of a Bitcoin hash rate of approximately 750 PH/s. This
equivalent hash rate of 750 PH/s combined with our pure Bitcoin
hash rate of 925 PH/s provides us with a total BTC equivalent
operational hash rate of 1.675 EH/s (the “Global HIVE Hash
Rate”).
Our strong Global HIVE Hash Rate is resulting in
a daily income of over $550,000, or an annual run rate of $200
million, based on the current difficulty, global hash rates, and
Bitcoin and Ethereum prices, with estimated annual expenses of $25
million. As expansion ramps up this number will increase. As
always, we caution our investors that Bitcoin and Ethereum continue
to have a high daily volatility of plus or minus 6% and investors
need to be aware of this volatility.
New Miners
This new equipment sourced from a top global
manufacturers is expected to be received and in operation within
the next 60 days, delivered in 2 tranches, with 2,000 miners in
August, and 2,000 miners in September 2021.
“This strategic purchase of equipment was
realized as a result of the very strong relationships that our team
have with the leading manufacturers in the ASIC miner space.” Frank
Holmes, Executive Chairman of HIVE continued, “This transaction is
part of our continuous momentum that we have for steady and
controlled growth to be the leading clean and green miner in our
industry.”
Today’s announcement is part of our continuing
strategy to increase our bitcoin mining capacity. HIVE intends to
continue utilizing cash flow to make opportunistic investments in
ASIC and GPU next generation mining equipment that can provide
positive gross mining margins.
Expansion Progress
We are making good progress on new data center
construction at our New Brunswick, Canada site. Here are some
recent pictures of the foundation of what will be a 20-megawatt
Bitcoin mining facility.
Photo 1: New Brunswick Building 3 - Concrete
pour, is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/0ae0f31b-0dc0-4eb2-8520-3aae738ba716
Photo 2: New Brunswick Building 3 - Foundational
progress, is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/40365c16-e0a0-47f9-968f-2189c8d5f942
We have also been steadily receiving and
installing new-generation Bitcoin miners in the existing buildings
in New Brunswick. Here are a few pictures of some of our 900 newly
racked miners operating.
Photo 3: New Brunswick Building 2 - Bitcoin
miners, is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/449d0110-6636-4a20-93e8-feaf6247d1c1
Photo 4: New Brunswick Building 2 - Bitcoin
miners, is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/96c3d2b3-2c47-467f-890b-fe9c757b7329
Here is a view of the “cold side” of some of our
bitcoin mining racks. The barrier on the right side of the picture
is a “filter wall”, which keeps miners running smoothly.
Photo 5: New Brunswick Building 2 - Filter
wall, is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/943977fb-44ef-475b-9a40-8fce70f55f75
About HIVE Blockchain Technologies
Ltd.HIVE Blockchain Technologies Ltd. went public in 2017
as the first cryptocurrency mining company with a green energy and
ESG strategy.
HIVE is a growth-oriented technology stock in
the emergent blockchain industry. As a company whose shares trade
on a major stock exchange, we are building a bridge between the
digital currency and blockchain sector and traditional capital
markets. HIVE owns state-of-the-art, green energy-powered data
centre facilities in Canada, Sweden, and Iceland, where we source
only green energy to mine on the cloud and HODL both Ethereum and
Bitcoin. Since the beginning of 2021, HIVE has held in secure
storage the majority of its ETH and BTC coin mining rewards. Our
shares provide investors with exposure to the operating margins of
digital currency mining, as well as a portfolio of cryptocurrencies
such as ETH and BTC. Because HIVE also owns hard assets such as
data centers and advanced multi-use servers, we believe our shares
offer investors an attractive way to gain exposure to the
cryptocurrency space. HIVE traded over 2 billion shares in
2020.
We encourage you to visit HIVE’s YouTube channel
here to learn more about HIVE.
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”Executive Chairman
For further information please contact:Frank HolmesTel: (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.
Forward-Looking Information
Except for the statements of historical fact,
this news release contains “forward-looking information” within the
meaning of the applicable Canadian and U.S. 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 with
respect to information about the proposed purchase of equipment
from Foundry Digital LLC, including the potential increase in
hashpower, the potential for the Company’s long-term growth, and
the business goals 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: the Company may not
receive regulatory approval to complete the purchase of equipment
from Foundry Digital LLC as contemplated or at all; the volatility
of 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 as
required, or at all; a material decline in digital currency prices
may have a significant negative impact on the Company’s operations;
the volatility of digital currency prices; continued effects of the
COVID-19 pandemic may have a material adverse effect on the
Company’s performance as supply chains are disrupted and prevent
the Company from carrying out its expansion plans or operating its
assets; and other related risks as more fully set out in the
registration statement of the Company and other documents disclosed
under the Company’s filings at www.sec.gov/EDGAR and
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 current profitability in mining cryptocurrency (including
pricing and volume of current transaction activity); profitable use
of the Company’s assets going forward; the Company’s ability to
profitably liquidate its digital currency inventory as required;
historical prices of digital currencies and the ability of the
Company to mine digital currencies will be consistent with
historical prices; and there will be no regulation or law that will
prevent the Company from operating its business. 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 their inherent uncertainty.
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