Mr. Frank Holmes reports
HIVE BLOCKCHAIN INCREASES BITCOIN MINING PRODUCTION IMMEDIATELY WITH THE PURCHASE OF 1,240 NEXT GENERATION MINERS WHILE UPGRADING ITS GPU CHIPS TO MINE ETHEREUM IN THE CLOUD
Hive Blockchain Technologies Ltd. has purchased and immediately begun hashing 1,240 MicroBT WhatsMiner M30S miners with an aggregate operating hash power of 113 petahashes per second as it continues to expand its bitcoin mining operations.
The cost for these M30S miners was approximately $2,715 (U.S.) per unit, or $3.4-million (U.S.), financed through the company's cash.
New bitcoin miners
With the addition of these 1,240 MicroBT WhatsMiner M30S miners, Hive's aggregate operating hash rate almost doubles from 116 petahashes per second to 229 petahashes per second.
This new equipment, which is already electrified, will be hosted by DMG Blockchain Solutions Inc. at its facility located at Christina Lake, B.C. DMG chief operating officer Sheldon Bennett commented: "DMG is excited to welcome Hive Blockchain as a client and partner. Hive has continued to demonstrate leadership and vision in the mining industry."
"The vision of the company is to achieve an aggregate operating hash power of 1,000 petahashes per second within the next 12 months," said Frank Holmes, interim executive chairman of Hive.
As Hive has mentioned before, the COVID-19 pandemic continues to impact logistics and the supply of miners from Asia. Today's announcement is part of the company's continuing strategy to increase its bitcoin mining capacity. Hive intends to continue utilizing cash flow to make opportunistic investments in next-generation mining equipment that can provide positive gross mining margins.
Hive's miner purchases year to date:
- April, 2020: Seven hundred fifty S17 Plus miners (73 terahashes per second) were purchased from Bitmain and have been deployed.
- June, 2020: One thousand ninety T17 Plus miners (58 terahashes per second) were purchased from Bitmain and have been deployed.
- June, 2020: Two hundred S17e miners (60 terahashes per second) were purchased through a broker, and, because of the production delays that have been experienced by Bitmain, Hive is still awaiting delivery of over half of the miners.
- July, 2020: One hundred fifty-six T17 miners (42 terahashes per second) were purchased through a broker and have been deployed.
Ethereum mining update
Hive continues to be one of the largest publicly traded Ethereum miners in the world. As a result of this substantial footprint, the company continues to aggressively spend money on upgrading the efficiencies of its GPU (graphics processing unit) chips to mine Ethereum in the cloud.
Hive mined more than 32,000 Ethereum in the quarter from July 1 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 greater-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.
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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