HIVE Blockchain Technologies Ltd - HIVE

HIVE Blockchain Technologies Ltd. is a growth oriented, TSX.V-listed company building a bridge from the blockchain sector to traditional capital markets. HIVE owns state-of-the-art green energy-powered data centre facilities in Canada, Sweden and Iceland, which produce newly minted digital currencies like Bitcoin and Ethereum continuously on the cloud. Our deployments provide shareholders with exposure to the operating margins of digital currency mining as well as a portfolio of crypto-coins.

HIVE is pleased to announce an agreement to expand the footprint of their Sweden GPU mining data centre by an immediate 2 MW at an estimated cost of US$ 9 million, by the end of April 2021

By the end of 2021 we are planning a 30% increase in our Ethereum mining capacity. The immediate expansion of the operating footprint would be accomplished through an infrastructure re-fitting of a portion of its existing facility in Boden, Sweden at an estimated cost of US$ 250,000 and the purchase of new generation GPU chips and associated mining rigs to house them at an estimated cost of US$ 8.75 million. These new generation chips are expected to be more efficient than currently available GPU chips on the market while consuming less electricity, which should lead to continuing positive gross margins.

HIVE Blockchain Surpasses Its Bitcoin Mining Capacity Goal of 2,000 PH/s for 2021 to a New Level of 2,474 PH/s or 2.474 EH/s


This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated February 2, 2021 to its short form base shelf prospectus dated January 27, 2021.

Vancouver, Canada – HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTCQX:HVBTF) (FSE:HBF) (the “Company” or “HIVE”) is excited to announce that it has made a monumental step by smashing through its updated 2021 ASIC capacity goal of 2,000 Petahash per second (PH/s) with the purchase of 10,500 next generation miners with an aggregate operating hash power of 711 PH/s, taking our total future capacity to 2,474 PH/s or 2.474 Exahash per second (EH/s).

New Bitcoin Miners

The addition of these 10,500 next generation miners, increases HIVE’s aggregate operating hash rate from Bitcoin mining to an estimated 2.474 EH/s or 2,474 PH/s by the end of 2021.

This new equipment, sourced through our growing network, is coming from 2 different sources to reduce our dependency on one supplier, and reduce supplier delivery risk. The first supplier is providing 9,000 next generation miners with an aggregate hash rate of 666 PH/s. This equipment is expected to be delivered in 5 tranches, with 1,000 miners in June, and 2,000 miners in each of the months of September, October, November and December 2021.

The second supplier is providing 1,500 next generation miners with an aggregate hash rate of 45 PH/s. This new equipment is expected to be received and in operation in the next 30 days delivered in a single tranche in March 2021.

We remind our shareholders that the COVID-19 pandemic continues to impact logistics and the supply of miners from Asia. Today’s announcement is part of our continuing strategy to increase our bitcoin mining capacity. HIVE intends to continue utilizing cash flow to make opportunistic investments in ASIC and GPU next generation mining equipment that can provide positive gross mining margins.

Our current self mining operations on the cloud are comprised of 315 PH/s of ASIC operations mining Bitcoin which we expect will increase each and every month through 2021 to our current capacity of 2,474 PH/s, in addition to 2,725 Gigahash per second (GH/s) of GPU operations mining Ethereum, which we will increase as we complete our memory card upgrades and previously announced expansion plans in Sweden.

New GPU Miners

We are working daily to both upgrade our Swedish facility and expand our capacity with the acquisition of additional GPU chips to mine Ethereum. Like ASIC chips are in limited supply so are GPU chips.

This usually means the barriers to entry by new mining players is quite limited which is bullish for existing miners’ profit margins. It is very difficult to source chips and the secondary costs to acquire mining equipment is very expensive with much longer pay backs, which we believe is quite risky. We have been frugal in the costs to acquire new mining equipment.

ESG Focus

All of our locations are using only green energy.