Mr. Frank Holmes reports
HIVE REACHES $200 MILLION ANNUAL RUN RATE AND PURCHASES 4,000 NEXT GENERATION MINERS
Hive Blockchain Technologies Ltd.'s global operations are producing a bitcoin (BTC) equivalent operational hashrate of 1.675 exahashes per second (EH/s) from its bitcoin and ethereum operations. Based on current ethereum and bitcoin prices, the company is generating daily income of $550,000, which translates to an annual run-rate of $200-million. Estimated annual run-rate operating and overhead costs are $25-million. In addition, Hive continues to strengthen its miner purchasing pipeline with the purchase of 4,000 next-generation miners with an aggregate operating hash power of 272 petahashes per second (PH/s).
Global hash rate
With the addition of the 3,019 high-performance bitcoin miners that was announced on July 12, 2021, and additional miners that have been received since as part of its miner purchase program, the company currently has a total bitcoin operating hash rate of 925 PH/s. This puts it right on track of its previous projections of reaching one EH/s of bitcoin operating hash rate in August. The company currently projects tripling its operational bitcoin mining rate from here by the end of calendar year 2021, supported by today's announcement of new miner purchases.
From its ethereum production, it currently has an operating hash rate of 3,383 gigahashes per second (GH/s). A number of its dedicated followers and analysts have been converting this ethereum hash rate into a bitcoin equivalent hash rate. Based on these calculations, its current ethereum hash rate is the equivalent of a bitcoin hash rate of approximately 750 PH/s. This equivalent hash rate of 750 PH/s, combined with its pure bitcoin hash rate of 925 PH/s, provides it with a total BTC equivalent operational hash rate of 1.675 EH/s.
Its strong global Hive hash rate is resulting in a daily income of over $550,000, or an annual run-rate of $200-million, based on the current difficulty, global hash rates, and bitcoin and ethereum prices, with estimated annual expenses of $25-million. As expansion ramps up, this number will increase. As always, the company cautions its investors that bitcoin and ethereum continue to have a high daily volatility of plus or minus 6 per cent and investors need to be aware of this volatility.
This new equipment, sourced from a top global manufacturer, is expected to be received and in operation within the next 60 days, delivered in two tranches, with 2,000 miners in August and 2,000 miners in September, 2021.
"This strategic purchase of equipment was realized as a result of the very strong relationships that our team have with the leading manufacturers in the ASIC [application-specific integrated circuit] miner space." Frank Holmes, executive chairman of Hive, continued, "This transaction is part of our continuous momentum that we have for steady and controlled growth to be the leading clean and green miner in our industry."
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 ASIC and GPU (graphics processing unit) next-generation mining equipment that can provide positive gross mining margins.
The company is making good progress on new data centre construction at its New Brunswick, Canada, site.
About Hive Blockchain Technologies Ltd.
Hive Blockchain Technologies went public in 2017 as the first cryptocurrency mining company with a green energy and ESG (environmental, social and corporate governance) strategy.
Hive is a growth-oriented technology stock in the emergent blockchain industry. As a company whose shares trade on a major stock exchange, it 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 it 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 ETH and BTC coin mining rewards. Its shares provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of cryptocurrencies such as ETH and BTC. Because Hive also owns hard assets such as data centres and advanced multiuse servers, it 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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