Mr. Frank Holmes reports
HIVE BLOCKCHAIN ORDERS 3,000 MICROBT HIGH PERFORMANCE BITCOIN MINERS AND MINES ITS 1,000TH GREEN AND CLEAN BITCOIN TO HODL
Hive Blockchain Technologies Ltd. has ordered 3,000 premium MicroBT WhatsMiners with a total hash rate of 294 petahashes per second, with an average efficiency of approximately 34 watts per terahash. Additionally, the company now has hodl over 1,000 bitcoins in its cold wallets. The company notes that 294 petahashes per second would generate approximately 67 bitcoin per month based on current difficulty levels.
Currently, the company has over one exahash of bitcoin mining capacity operating, which produces over 225 bitcoin per month on a run-rate basis at current difficulty levels. The company believes the difficulty will continue to rise.
Hive is proud to continue its relationship with MicroBT through the purchase of 3,000 WhatsMiner miners, which will be a mixture of M30S, M30S+ and M30S++ machines. These 3,000 miners will be delivered in 12 equal tranches of 250 miners during calendar 2022 commencing in January and ending in December. This will increase the company's global hash rate by 24.5 petahashes per second each month.
Frank Holmes, executive chairman of Hive, said: "The continuing work and success that our team has been able to achieve with our strategic partners during these challenging times due to the global shortages in chips and logistics delays in shipping equipment from Asia due to COVID-19 has been remarkable. As a result, we are able to increase our 2022 run-rate revenue by almost 25 per cent with this acquisition, while positioning Hive to realize a good [return on investment] on capital invested, by making ASIC acquisitions at very attractive dollar-per-terahash prices, all in pace with the development of our green and clean operating infrastructure. We are not saddled with needing to buy carbon offsets, which helps our margins, because we are focused on mining by sourcing geothermal and hydroelectric energy."
These miner deliveries are a result of the company's continuing strategy to increase its bitcoin mining capacity, which includes the sourcing of mining equipment from leading industry manufacturers like MicroBT. Hive intends to continue to utilize cash flow to make opportunistic investments and upgrade its fleet of BTC and ETH mining equipment on a regular monthly basis.
BTC hodl and production update
Hive is excited to announce that it currently holds over 1,030 green and clean bitcoins in cold wallet custody. The company is pleased to provide the following update on its global BTC growth in production for the current 2022 fiscal year:
- April, 2021: 64 BTC growth;
- May, 2021: 73 BTC growth;
- June, 2021: 86 BTC growth;
- July, 2021: 200 BTC growth;
- August, 2021: 234 BTC growth.
Review of operations
Mr. Holmes continued: "I have just travelled with Aydin Kilic, our new president and chief operating officer, to tour our major Swedish facilities and scout other green energy opportunities. Aydin also visited our operations and strategic partners in Iceland on his way back to Canada. We had very productive meetings with the community leaders in Boden and with the [chief executive officers] for our strategic partners. We will be expanding our Swedish operations by one megawatt immediately in our existing facility located in Boden."
Pursuant to the ATM equity program, as required pursuant to National Instrument 44-102 (Shelf Distributions) and the policies of the TSX Venture Exchange, the company announces that, since the beginning of the program on Feb. 3, 2021, to its year-end of March 31, 2021, it has issued an aggregate of 16,363,500 common shares over the TSX-V, for aggregate gross proceeds to the company of $81,726,621. The ATM shares were sold at prevailing market prices, for an average price per ATM share of $4.99. Pursuant to the equity distribution agreement associated with the ATM equity program (the EDA), a cash commission of $1,936,292 (U.S.) on the aggregate gross proceeds raised was paid to the agent in connection with its services under the EDA to March 31, 2021.
Pursuant to the ATM equity program, as required pursuant to National Instrument 44-102 (Shelf Distributions) and the policies of the TSX Venture Exchange, the company announces that, since the beginning of the program on Feb. 3, 2021, to its first quarter ended June 30, 2021, it has issued an aggregate of 18,741,900 common shares over the TSX-V, for aggregate gross proceeds to the company of $91,033,090. The ATM shares were sold at prevailing market prices for an average price per ATM share of $4.83. Pursuant to the equity distribution agreement associated with the ATM equity program, a cash commission of $2,162,919.86 (U.S.) on the aggregate gross proceeds raised was paid to the agent in connection with its services under the EDA to June 30, 2021.
Pursuant to the EDA, the company may, from time to time, sell up to $100-million (U.S.) of common shares in the capital of the company. The company intends to use the net proceeds of the ATM equity program, if any, principally for general corporate and working capital requirements, for financing continuing operations, to repay indebtedness outstanding from time to time, to complete future acquisitions, or for other corporate purposes.
About Hive Blockchain Technologies Ltd.
Hive Blockchain went public in 2017 as the first cryptocurrency mining company with a green energy and ESG (environmental, social and 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 hodl 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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