HIVE Blockchain to Acquire Kolos Norway AS and to Build Major Data Centre

HIVE Blockchain Technologies (TSXV:HIVE) and Kolos Norway AS have announced that they have entered into series of agreements where HIVE will acquire all of the issued and outstanding shares of Kolos by acquiring another Norwegian entity for $9.9 million.

As quoted in the press release:

“This is another major milestone in our continuing global expansion as a leading blockchain and cryptocurrency infrastructure company,” said Harry Pokrandt, CEO and Director of HIVE. “Kolos will be a flagship data centre project for HIVE for years to come and has the potential to expand to more than 1.0 GW, or 1,000 MW, of green hydroelectricity consumption dedicated to blockchain infrastructure. For context, our advanced mining operations in Iceland and Sweden will collectively represent 44.2 MW of consumption – also from green sources. This acquisition provides HIVE with significant flexibility for long-term growth. Our vision is to scale the project in phases to be among the largest and most energy-efficient data centres in the world. We continue to explore non-dilutive financing alternatives to commence the build-out as soon as possible.”

HIVE is committed to being a leader in building a clean energy future for the blockchain industry. The Kolos project, which will be run on 100% green, renewable power, is a major project demonstrating this commitment. Kolos’ primary asset is a 64-hectare property located in Ballangen, Norway, approximately 225 kilometres north of the Arctic Circle, and ideally situated for the construction of a large-scale, climate-cooled data centre. The property is in close proximity to infrastructure with excess capacity to provide HIVE with a supply of more than 1.0 gigawatt (“GW”), or 1,000 megawatts (“MW”), of hydroelectricity at highly competitive rates, and access to reliable, high speed internet. HIVE and its strategic partner, Genesis Mining Ltd. (“Genesis”), are developing a plan to construct an initial facility on the property accessing 30 MW of this capacity, which is available to HIVE immediately. It is expected that 120 MW of the total capacity will be available to HIVE within a year. Kolos has completed preliminary permitting with the local municipality, which strongly supports the project.

Under the Agreements, HIVE will pay aggregate cash consideration in the amount of NOK 55,600,000 (US$7,225,000) using cash on hand, assume NOK 20,915,000 (US$2,719,000) of liabilities, and issue 4,750,000 common shares of the Company and 1,250,000 warrants to purchase common shares of the Company (the “Warrants”). The Warrants and 2,650,000 common shares of the Company to be issued are subject to vesting provisions. The Warrants will be exercisable for a period of 5 years from the date of issuance and have an exercise price to be set at the closing of the Norway Acquisition.

Click here to read the full press release.