Mr. Frank Holmes reports
HIVE BLOCKCHAIN SURPASSES ITS BITCOIN MINING CAPACITY GOAL OF 2,000 PH/S FOR 2021 TO A NEW LEVEL OF 2,474 PH/S OR 2.474 EH/S
Hive Blockchain Technologies Ltd. has made a monumental step by smashing through its updated 2021 ASIC capacity goal of 2,000 petahashes per second with the purchase of 10,500 next-generation miners with an aggregate operating hash power of 711 petahashes per second, taking its total future capacity to 2,474 petahashes per second or 2.474 exahashes per second.
New Bitcoin miners
The addition of these 10,500 next-generation miners increases Hive's aggregate operating hash rate from Bitcoin mining to an estimated 2.474 exahashes per second or 2,474 petahashes per second by the end of 2021.
This new equipment, sourced through the company's growing network, is coming from two different sources to reduce its dependency on one supplier and reduce supplier delivery risk. The first supplier is providing 9,000 next-generation miners with an aggregate hash rate of 666 petahashes per second. This equipment is expected to be delivered in five tranches, with 1,000 miners in June, and 2,000 miners in each of the months of September, October, November and December, 2021.
The second supplier is providing 1,500 next-generation miners with an aggregate hash rate of 45 petahashes per second. This new equipment is expected to be received and in operation in the next 30 days delivered in a single tranche in March, 2021.
The company reminds its shareholders that 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 ASIC and GPU next-generation mining equipment that can provide positive gross mining margins.
The company's current self-mining operations on the cloud are composed of 315 petahashes per second of ASIC operations mining Bitcoin, which the company expects will increase each and every month through 2021 to its current capacity of 2,474 petahashes per second, in addition to 2,725 gigahashes per second of GPU operations mining Ethereum, which it will increase as it completes its memory card upgrades and previously announced expansion plans in Sweden.
New GPU miners
The company is working daily to both upgrade its Swedish facility and expand its capacity with the acquisition of additional GPU chips to mine Ethereum. ASIC chips are in limited supply, so are GPU chips.
This usually means the barriers to entry by new mining players are quite limited, which is bullish for existing miners' profit margins. It is very difficult to source chips, and the secondary costs to acquire mining equipment are very expensive with much longer paybacks, which the company believes is quite risky. It has been frugal in the costs to acquire new mining equipment.
ESG (environmental, social and governance) focus
All of the company's locations are using only green energy.
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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