Mr. Frank Holmes reports
HIVE BLOCKCHAIN REPORTS RECORD ETHEREUM MINING PRODUCTION DRIVEN BY DEFI DEMAND
Hive Blockchain Technologies Ltd. has achieved a record amount of Ethereum production in the current quarter driven by the continued strong usage of the blockchain network, notably for decentralized finance applications and the positive impact this has had for industrial-scale Ethereum miners such as Hive. The company also provided an update on the date of its financial statements and related filings for the first quarter ended June 30, 2020, of its fiscal year.
Ethereum mining update
Hive has thus far mined more than 32,000 Ethereum (and 121,000 Ethereum Classic) in the quarter from July 1, 2020, to Sept. 30, 2020, based on the company's preliminary unaudited results. This represents a significant sequential increase from the approximately 25,000 Ethereum mined in Hive's first fiscal quarter ended June 30, 2020, and a more than 50-per-cent increase compared with the same period last year.
The increase has been driven by the massive demand for transactions on Ethereum, including by stablecoins and DeFi applications, which have resulted in record highs in Ethereum transaction fees paid to miners. Many investors are using smart contracts to perform DeFi actions such as staking, pooling and lending, and such investors have been paying higher costs to make sure their transactions go through.
Hive has also significantly increased its cash flows from Ethereum mining in the current quarter driven by the combination of: its increased Ethereum production; the significant rise in the price of Ethereum; and, as reported by the company previously, the significantly lower operating and maintenance costs achieved at the company's Ethereum mining facilities in Europe due to management's decision to assume direct control of the company's mining operations over the past 18 months from its former strategic partner. Based on its operating and maintenance costs, the company's current cost to mine Ethereum is approximately $150 (U.S.), while the average price of Ethereum in the quarter ended Sept. 30, 2020, has been $343 (U.S.).
The company has been utilizing such cash flows to upgrade and expand its Ethereum mining equipment and support the scaling up of its recently acquired Bitcoin mining operation in Canada.
Financial statements update
As previously announced, due to circumstances created by the COVID-19 global pandemic, the company is relying on the 45-day extension period for the filing of its financial statements and related materials provided to issuers by Canadian regulators, as enacted in Instrument 51-517 -- Temporary Exemption from Certain Corporate Finance Requirements with Deadlines during the Period from June 2, 2020, to Aug. 31, 2020, by the British Columbia Securities Commission.
As required by BC Instrument 51-517, the company discloses the following:
- The company now expects to file its financial statements and related management discussion and analysis for the first quarter ended June 30, 2020, of its fiscal year on or before Oct. 15, 2020, as opposed to Oct. 13, 2020, as the company previously announced.
- In the interim, the company's management and other insiders are subject to a trading blackout policy that reflects the principles in Section 9 of National Policy 11-207 -- Failure-to-File Cease Trade Orders.
- The company confirms that since the filing of its financial statements and related management discussion and analysis for the period ended March 31, 2020, there have been no material business developments other than those disclosed through news releases.
About Hive Blockchain Technologies Ltd.
Hive Blockchain Technologies is a growth-oriented, TSX Venture Exchange-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. The company's deployments provide shareholders with exposure to the operating margins of digital currency mining as well as a portfolio of cryptocoins.
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