Genesis Mining Attempts HIVE Blockchain Takeover

HIVE Blockchain (TSXV:HIVE) announced that Genesis Mining attempted a takeover of HIVE Blockchain. The company reported that Genesis Mining breached a contract, overcharging HIVE Blockchain by US$50 million for its services. In turn, Genesis Mining attempted to takeover the company’s board. Genesis Mining currently owns 26.3 percent of HIVE Blockchain shares.

As quoted in the press release:

“Discussions with Genesis for full disclosure of all costs for all mining operations have been ongoing since September 2018,” said Frank Holmes, Interim Executive Chairman and Interim CEO. “We are frustrated that Genesis unilaterally gave notice of increased costs in Sweden and services under the MSA have not been ‘performed in a professional and workmanlike manner in accordance with the highest industry standards’ as required by the MSA. It is disappointing that Genesis has reacted by attempting to eliminate the dispute by taking control of the HIVE board but I am confident that HIVE shareholders will understand that the meeting requisition is a blatant attempt to take control of HIVE for Genesis’ sole benefit to the detriment of all other shareholders”.

By way of background HIVE has asked Genesis on multiple occasions to provide a review of electricity pricing in Iceland and Sweden. HIVE is entitled to be charged Genesis’ cost for power pursuant to the MSA but despite numerous requests, Genesis has failed to provide full information as to whether HIVE is being charged Genesis’ cost for power in Iceland and Sweden. This despite unilateral increases to power charges to HIVE issued by Genesis.

Click here to read the full press release.