01:49:27 EDT Sun 17 Oct 2021
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Hive Blockchain Technologies Ltd
Symbol HIVE
Shares Issued 379,578,959
Close 2021-06-30 C$ 3.54
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Hive hopes to increase ethereum, bitcoin production rate

2021-07-02 09:45 ET - News Release

Mr. Frank Holmes reports


Hive Blockchain Technologies Ltd. has provided its long-term high performance computing strategy beyond ethereum 2.0.

Ethereum and bitcoin growth plans for 2021

Hive's current ethereum production is over 3,000 gigahashes per second and has the potential to almost double after card upgrades of over 5,500 gigahashes per second by the end of December, 2021, and the company's current bitcoin production is 544 petahashes per second, which Hive expects to double by early September, 2021, to 1.0 exahash per second and double again by Christmas 2021 to 2.3 exahashes per second. Based on current ethereum and bitcoin prices and difficulty in mining, the company's revenue could be $30-million (U.S.) per month when Hive has all its machines installed and mining.

Long-term HPC (high performance computing) strategy

High performance GPU (graphics processing unit) cards are key to Hive's long-term strategy to build HPC data centres, which are growing in demand globally, while in the short term to be a more efficient ethereum miner and to increase the company's hash power to produce more virgin ether and hold these assets on the company's balance sheet. For the past year, ethereum is up 821 per cent while bitcoin has appreciated 270 per cent, and Hive believes over the next two years ethereum could continue to outperform bitcoin. The company is of the opinion that ethereum 2.0 proof of stake will take at least another two years before ethereum mining could become financially unattractive. Hive believes the new high-performing GPU cards will remain robust, extensible technology that can be scaled and repurposed for the boom in gaming, AI (artificial intelligence) and movie animation, thus flexible and profitable for a high performance computing data business strategy for at least another five years. The company holds its ethereum in a cold wallet, which results in a very liquid balance sheet asset. Later in the ethereum life cycle, the company may consider staking its virgin ether for additional income.

Ethereum is the backbone to the blockchain supergrowth wave

Hive believes ethereum will continue to be the backbone of this new financial ecosystem. Many believe ethereum has already won the race to become the foundation of Web 3.0 and finance 3.0, with the explosion in smart contracts, stablecoins, DeFi (decentralized finance) generally and now NFTs (non-fungible tokens) for music, art and sports. Ethereum has become the fundamental base layer to all these new applications and has the most developers building real-world applications on top of it. As a result, the network has built a large lead over its competition. Most investors are not aware that ethereum has substantially more developers building on it than any other blockchain platform.

Hive understands it is in the early days, and this industry can change rapidly. Therefore, the company is positioning itself with considerable optionality. The company is ramping up bitcoin mining on the cloud as well as its GPU operations. Hive is currently working on the design for pilot HPC sites in both Canada and Sweden and then expect to ramp up its HPC capacity. Today, the revenue from HPC is both a high-margin business like ethereum mining, yet it is much less volatile than cryptocurrency mining on a quarterly basis.

ESG (environmental, social and governance) strategy

The company continues to review green energy opportunities and have turned down financially attractive mining deals because they are not using green energy. The company is focused on renewable sources of electricity such as hydroelectric, geothermal, wind and solar. So far, the company is only using hydroelectric and geothermal sources of electricity in Sweden, Iceland and Canada.

About Hive Blockchain Technologies Ltd.

Hive Blockchain Technologies went public in 2017 as the first cryptocurrency mining company with a green energy and ESG strategy.

Hive is a growth-oriented technology stock in the emergent blockchain industry. As a company whose shares trade on a major stock exchange, Hive is building a bridge between the digital currency and blockchain sector and traditional capital markets. Hive owns state-of-the-art, green-energy-powered data centre facilities in Canada, Sweden and Iceland, where the company sources only green energy to mine on the cloud and hold both ethereum and bitcoin. Since the beginning of 2021, Hive has held in secure storage the majority of its ethereum and bitcoin coin mining rewards. The company's shares provide investors with exposure to the operating margins of digital currency mining as well as a portfolio of cryptocurrencies such as ethereum and bitcoin. Because Hive also owns hard assets such as data centres and advanced multiuse servers, the company believes its shares offer investors an attractive way to gain exposure to the cryptocurrency space. Hive traded over two billion shares in 2020.

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