Mr. Frank Holmes reports
HIVE BLOCKCHAIN DOUBLES ITS BITCOIN PRODUCTION CAPACITY WITH THE PURCHASE OF NEW GENERATION BITCOIN MINERS
Hive Blockchain Technologies Ltd. has purchased 4,180 MicroBT WhatsMiner M31S+ next-generation miners with an aggregate operating hash power of 334 petahashes per second as it continues to expand its Bitcoin mining operations.
With the addition of these 4,180 MicroBT WhatsMiner M31S+ miners, Hive expects its aggregate operating hash rate from Bitcoin mining to almost double to an estimated 653 petahashes per second.
Based on the orders that have been placed, this new equipment is expected to be delivered in nine tranches in 2021, with 180 miners delivered in April and 500 miners delivered in each month in the rest of calendar 2021, commencing with May delivery.
These secured orders are the continuing steps that Hive is taking toward the vision to achieve an aggregate operating hash power of 1,000 petahashes per second by the end of calendar 2021, all financed out of operational cash flows. With these secured purchases, the company has taken a huge step toward its goal.
Hive continues to be the leading Ethereum producer, sourcing green energy from facilities in Sweden and Iceland. Ethereum has outperformed Bitcoin over the past year, and based upon the company's preliminary unaudited results, the company produced approximately 22,000 Ethereum coins in the last quarter ended Dec. 31, 2020, and inventory ended with approximately 13,100 Ethereum coins. Further, the company's Bitcoin production in Canada increased to approximately 160 Bitcoins in the past quarter, up from 89 in the prior quarter, and the company ended the Dec. 31, 2020, quarter with inventory of approximately 140 coins.
As the company 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 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.
About Hive Blockchain Technologies Ltd.
Hive Blockchain 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. Its deployments provide shareholders with exposure to the operating margins of digital currency mining, as well as a portfolio of crypto-coins.
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