VANCOUVER, BC, July 6, 2020 /PRNewswire/ – HIVE Blockchain Technologies Ltd. (TSX.V: HIVE) (OTCQX: HVBTF) (FSE: HBF) (the “Company” or “HIVE”) is pleased to announce that it has ordered 200 Bitmain Antminer S17e 60 Terahash per second (TH/s) SHA 256 mining machines as it continues to scale up next generation mining power at its green energy-powered bitcoin mining operation in Quebec.
The cost for the S17e machines was approximately US$950 per unit, or just under US$0.2 million, financed through the Company’s cash. Delivery and installation of the new mining equipment is anticipated to occur in July.
Following installation, excluding further purchases, HIVE estimates its aggregate operating hash rate specifically from next generation mining equipment at its Quebec facility, will be approximately 131 Petahash per second (PH/s), utilizing less than 6 MW power. This equates to approximately 22.6 PH per megawatt (“MW”) of power, which HIVE believes is one of the most energy efficient bitcoin mining operations in Canada.
While the COVID-19 pandemic has impacted logistics and the supply of new bitcoin miners manufactured in Asia, today’s announced purchase is HIVE’s third purchase of next generation bitcoin mining equipment over the past two months, totalling approximately US$2.35M with the amounts paid through cash on hand. As part of its strategy to maximize the capacity and efficiency of its facility, HIVE intends to continue utilizing cash flow to make opportunistic investments in the facility. These investments include installing next generation mining equipment that can provide positive gross mining margins post the May 2020 halving of bitcoin rewards; the next halving is scheduled to occur in 2024.
The Company also announced that it entered into a consulting agreement (the “Consulting Agreement”) with Robby Chang (the “Consultant”) dated December 4, 2019. Pursuant to the Consulting Agreement, the Consultant agreed to provide strategic consulting services to the Company in consideration for a monthly fee of C$10,000. In addition, pursuant to the Consulting Agreement and in connection with the successful acquisition of the dedicated cryptocurrency mining operation as announced on April 8, 2020, the Company agreed to pay to the Consultant a one-time payment of 100,000 common shares in the capital of the Company and C$10,000. Issuance of the common shares to the Consultant is subject to regulatory approval including the approval of the TSX Venture Exchange.
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…