Mr. Frank Holmes reports
HIVE BLOCKCHAIN ANNOUNCES PLANS TO EXPAND ETHEREUM FOOTPRINT BY 30% USING 6 MW OF GREEN ENERGY TO MINE ETHEREUM
Hive Blockchain Technologies Ltd. has signed an agreement to expand the footprint of its Sweden GPU mining data centre by an immediate two megawatts at an estimated cost of $9-million (U.S.) by the end of April, 2021.
By the end of 2021, it is planning a 30-per-cent increase in its Ethereum mining capacity. The immediate expansion of the operating footprint would be accomplished through an infrastructure refitting of a portion of its existing facility in Boden, Sweden, at an estimated cost of $250,000 (U.S.) and the purchase of new-generation GPU chips and associated mining rigs to house them at an estimated cost of $8.75-million (U.S.). These new generation chips are expected to be more efficient than currently available GPU chips on the market while consuming less electricity, which should lead to continuing positive gross margins.
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 continuing strategy to increase GPU mining capacity. Hive intends to continue utilizing cash flow to make opportunistic investments in ASIC and GPU new- and 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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