HIVE Increases ASIC Bitcoin Mining Capacity by 100 Petahashes

HIVE Blockchain (TSXV:HIVE) has announced ite has added 100 Petahashes of cloud-based ASIC mining capacity which brings its total to 300 PH’s totaling US$6 million payable as US$2.5 million in cash or Ethereum and an additional $3.5 million in the form of 8,317,490 common shares, valued at approximately C$0.55 per share.

As quoted in the press release:

The cost per Petahash is significantly reduced versus previous ASIC deployments and the agreement also includes a 6 month option, starting January 1, 2019, for HIVE to add a further 100PH’s at the same economic terms as today’s announcement. The immediate 100PH’s increases ASIC mining by 50% and positions the Company as one of the largest publicly listed cryptocurrency miners. The additional PH agreement, including the 6 month option, is subject to the approval of the TSX Venture Exchange.

“In our view, this transaction shows tremendous support from our partners at Genesis and demonstrates the many benefits of our strategic partnership, with Genesis providing HIVE the ability to leverage its existing ultra low-cost, global platform to immediately increase our ASIC mining footprint and cash flow profile, without the need to construct a new facility. The option to purchase a further 100PH’s post December 2018 allows HIVE the ability to preserve our cash and coin balance now and strategically increase production in the right market environment” said Frank Holmes, interim Executive Chairman. “This increase in capacity and future optionality comes on the heels of the recent announcement regarding improved financial terms of our bitcoin mining contract and the addition of Marco Streng, CEO of Genesis Group, as Vice Chairman of HIVE. Despite the volatility in cryptocurrency prices experienced throughout 2018, we believe that these low-cost increases in our mining capacity have better positioned HIVE within the current landscape and we now stand to benefit tremendously from potential improvements in the cryptocurrency markets, specifically Bitcoin and Ethereum.”

Click here to read the full press release.