ZUG, Switzerland and
VANCOUVER, Nov. 30, 2018 /CNW/ - HIVE Blockchain
Technologies Ltd. (TSX.V:HIVE) (OTC:HVBTF) (the "Company" or
"HIVE") today announced the addition of 100 Petahashes ("PH") of
cloud-based ASIC mining capacity bringing total capacity to 300PH's
at a cost of 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, a significant
premium to HIVE's current trading price.
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."
Management will host a webcast on Friday, November 30, 2018 at 5:30am Pacific Time/7:30am
Central Time/8:30am Eastern
Time to discuss the Fiscal 2019 Q2 results and this new
agreement.
Click here to register for the webcast
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. is a growth oriented,
TSX.V-listed company building a bridge from the blockchain sector
to traditional capital markets. HIVE is strategically partnered
with Genesis Mining Ltd. to build the next generation of blockchain
infrastructure. HIVE owns state-of-the-art GPU-based digital
currency mining facilities in Iceland and Sweden, which produce newly minted digital
currencies like Ethereum continuously as well as cloud-based
ASIC-based capacity which produces newly minted digital currencies
like Bitcoin. Our deployments provide shareholders with exposure to
the operating margins of digital currency mining as well as a
growing portfolio of crypto-coins.
For more information and to register to HIVE's mailing list,
please visit www.HIVEblockchain.com. Follow @HIVEblockchain on
Twitter and subscribe to HIVE's YouTube channel.
On Behalf of HIVE Blockchain Technologies Ltd.
"Frank Holmes"
Interim Executive Chairman
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this news release.
Forward-Looking Information
Except for the statements of historical fact, this news
release contains "forward-looking information" within the meaning
of the applicable Canadian securities legislation that is based on
expectations, estimates and projections as at the date of this news
release. "Forward-looking information" in this news release
includes information about the addition of 100 PH of cloud-based
ASIC mining capacity; the 6 month option for the Company to add a
further 100PH's and the terms thereon; the increase in the
Company's ASIC mining footprint and cash flow profile; potential
improvements in the cryptocurrency markets; long term growth
of the Company; the business goals and objectives of the Company,
and other forward-looking information includes but is not limited
to information concerning the intentions, plans and future actions
of the parties to the transactions described herein and the terms
thereon.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, the Company may not receive regulatory
approval for the additional 100 PH cloud contract, nor the
additional 100 PH could contract; the ongoing partnership with
Genesis; the digital currency market; the Company's ability to
successfully mine digital currency; the Company may not be able to
profitably liquidate its current digital currency inventory, or at
all; a decline in digital currency prices may have a significant
negative impact on the Company's operations; the volatility of
digital currency prices; and other related risks as more fully set
out in the Company's disclosure at www.sedar.com.
The forward-looking information in this news release reflects
the current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about the Company's
ability to complete the 100 PH could contract, and the additional
option for 100 PH could contract; the Company will be able to
profitably liquidate its digital currency inventory as required;
the Company's ongoing partnership with Genesis; historical prices
of digital currencies and the ability of the Company to mine
digital currencies will be consistent with historical prices; and
there will be no regulation or law that will prevent the Company
from operating its business. The Company has also assumed that no
significant events occur outside of the Company's normal course of
business. Although the Company believes that the assumptions
inherent in the forward-looking information are reasonable,
forward-looking information is not a guarantee of future
performance and accordingly undue reliance should not be put on
such information due to the inherent uncertainty therein.
SOURCE HIVE Blockchain Technologies Ltd.