HIVE Blockchain Expands Bitcoin Mining Capacity by 36% With Purchase of 6,000 Next Generation Miners to Increase Future Operations to 1,673 PH/s
HIVE Blockchain Technologies Ltd. (OTCQX:HVBTF) has announced a significant step towards its 2021 goal of achieving 2,000 Petahash per second (PH/s) in Bitcoin mining capacity by purchasing 6,000 next-generation miners, adding 444 PH/s. The total operating hash rate is expected to reach 1,673 PH/s by the end of 2021. Deliveries are expected in two tranches in July and August 2021. HIVE maintains strong liquidity, with assets worth over USD $65 million, and continues to hold all mined Bitcoin and Ethereum, believing it will benefit shareholders.
- Purchase of 6,000 next-generation miners, increasing hash rate to 1,673 PH/s.
- Liquidity remains healthy with cash and coins valued over USD $65 million.
- Strategic focus on using green energy for Bitcoin mining.
- Potential delays in delivery and operation of new miners due to COVID-19 supply chain issues.
- Risk of cryptocurrency price volatility impacting profitability.
- Uncertainty about achieving targeted hash power of 2,000 PH/s within the projected timeline.
VANCOUVER, BC / ACCESSWIRE / February 23, 2021 / HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTCQX:HVBTF) (FSE:-HBF) (the "Company" or "HIVE") is excited to announce that it has made a large step towards its updated 2021 ASIC capacity goal of 2,000 Petahash per second (PH/s) with the purchase of 6,000 next generation miners with an aggregate operating hash power of 444 PH/s.
New Miners
With the addition of these 6,000 next generation miners, HIVE's aggregate operating hash rate from Bitcoin mining will increase to an estimated 1.673 Exahash per second (EH/s) or 1,673 PH/s by the end of 2021.
Based on the order that has been placed, this new equipment is expected to be received and in operation in the next 6 months, delivered in 2 tranches, with 3,000 miners in each of July, and August 2021.
This expansion will be for our operations in Canada and Iceland and are crucial key steps to take us over 2,000 PH/s of Bitcoin mining capacity using green energy by the end of 2021.
As we have mentioned before, the COVID-19 pandemic continues to impact logistics and the supply of miners from Asia. 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.
Chinese New Year is over and we are now expecting an increase in shipments of new GPU's with 8 gigabyte memory cards to accelerate, which should improve our Ethereum production.
Our liquidity remains healthy with cash and coins valued over USD
Coin Inventory (HODL)
Since the beginning of the calendar year HIVE has been a Holder of all of mined Bitcoin and Ethereum coins and has been banking it into inventory as a current strategy, which we feel will benefit our shareholders.
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 green energy-powered data centre facilities in Canada, Sweden, and Iceland which produce newly minted digital currencies like Bitcoin and Ethereum continuously on the cloud. Our deployments provide shareholders with exposure to the operating margins of digital currency mining as well as a 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.
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 information about the purchase of 6,000 next generation miners, including the expected delivery, operation and increase in operating hash rate from Bitcoin mining; the achievement of an aggregate operating hash power of 2,000 PH/s by the end of calendar 2021; the continued effects of the COVID-19 pandemic on logistics and the supply of miners from Asia; the continued utilization of cash flow to make opportunistic investments in next generation mining equipment that can provide positive gross mining margins; potential further improvements to profitability and efficiency across mining operations, 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 newly purchased 6,000 next generation miners may not be delivered or operation in the timeframe currently anticipated, or may not have a positive impact on the Company's profitability; the Company may not achieve an aggregate operating hash power of 2,000 PH/s in the timeframe currently anticipated, or at all; 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 operating its assets; a decrease in cryptocurrency pricing, volume of transaction activity or generally, the profitability of cryptocurrency mining; further improvements to profitability and efficiency may not be realized; 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, or at all; a decline in digital currency prices may have a significant negative impact on the Company's operations; the volatility of digital currency prices; and other related risks as more fully set out in the Filing Statement of the Company 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 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 the inherent uncertainty therein.
SOURCE: Hive Blockchain Technologies Ltd
View source version on accesswire.com:
https://www.accesswire.com/631270/HIVE-Blockchain-Expands-Bitcoin-Mining-Capacity-by-36-With-Purchase-of-6000-Next-Generation-Miners-to-Increase-Future-Operations-to-1673-PHs
FAQ
What is HIVE Blockchain's new mining capacity goal for 2021?
How many next-generation miners did HIVE Blockchain purchase?
What is the expected total hash rate after HIVE's new miner installations?
When will the new miners be delivered to HIVE Blockchain?
How is HIVE Blockchain managing its cryptocurrency inventory?
