ZUG, Switzerland and VANCOUVER, Feb. 10, 2020 /CNW/ - HIVE Blockchain
Technologies Ltd. (TSX.V:HIVE) (OTCQX:HVBTF) (the "Company" or
"HIVE") is pleased to announce that it now anticipates an
approximately 40% reduction in the Company's operating and
maintenance costs at its GPU mining facility in Sweden, compared to such costs under its
previous service provider agreement which it ended in November,
2019.
The updated cost reduction figure is higher than the
approximately 25% that the Company had previously anticipated, as
announced in its December 2, 2019
press release. This improvement is the result of locking in a lower
than anticipated electricity rate, stemming from an unusually warm
winter in Sweden, for a majority
of the Company's electricity costs via hedging agreements that will
continue through 2020. Electricity, which is provided through green
energy, comprises the majority of the Company's operating and
maintenance costs.
"We're extremely pleased to have locked in advantageous
electricity prices in Sweden
through our direct agreements with local suppliers, the result of
HIVE assuming full control of its Sweden operations in November," said
Frank Holmes, Interim Executive
Chairman of HIVE. "This provides cost certainty and allows us to
plan for our next stage of growth. It is another successful step in
our efforts to increase our underlying mining profitability in
2020."
HIVE is one of the world's largest public miners on the Ethereum
blockchain. The Company's Sweden
facility comprises the bulk of HIVE's current mining operations,
along with a significantly smaller GPU mining facility in
Iceland. The Company has
previously announced it is reviewing opportunities to improve
profitability at its Iceland
facility or relocate its GPU mining equipment there to a lower cost
jurisdiction.
"For the past two years, HIVE's share price has been relatively
correlated to the price of Ethereum, in part due to traders using
our publicly listed and relatively liquid shares as a proxy for
holding the cryptocurrency," noted Mr. Holmes. "That correlation
unfortunately became decoupled last spring following our proxy
battle. However, we are pleased that thus far in 2020, our efforts
through 2019 to assume control of and improve our mining operations
combined with the increasing adoption of the Ethereum blockchain
and increasing investor interest in cryptocurrencies and blockchain
technology, has resulted in similar investor interest in HIVE."
The Company also announced that the Board of Directors has
approved the grant of 3,000,000 incentive stock options; 500,000
options each were granted to the Company's directors and certain
officers which vest over 24 months. The options are exercisable
into the equivalent amount of common shares of the Company at a
price of C$0.29 per share. The grants
are subject to the approval and rules of the TSX Venture Exchange
and the Company's incentive stock option plan. All options will
expire on February 10, 2030. The
Company's Board has also approved the grant of an aggregate of
3,100,000 restricted share units ("RSUs"); 500,000 RSUs each were
granted to the Company's directors and certain officers, and
100,000 to a consultant to the Company which vest over 24 months.
Each vested RSU entitles the holder to receive one common share of
the Company.
Prior to the grants, the Company had approximately 327 million
issued and outstanding common shares and approximately 18 million
stock options.
The Company's Stock Option Plan and Restricted Share Unit Plan
were re-approved by shareholders at HIVE's 2019 annual meeting of
shareholders on December 18, 2019.
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 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, but is not limited to, statements regarding the
anticipated reduction in the Company's operating and maintenance
costs at its GPU mining facility in Sweden, its anticipated beneficial impact on
the Company's gross mining profit, the increasing adoption of the
Ethereum blockchain and increasing investor interest in blockchain
technology and cryptocurrencies; and, the Company's future plans
and opportunities.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, recent upgrades and increased minted Ether
coins may not have a positive impact on HIVE's revenues, or gross
mining margin; the Company may never realize more efficient
operations, a lower cost structure, or greater flexibility in
operations; and other related risks as more fully set out in the
Filing Statement of the Company dated September 13, 2017 and other documents disclosed
under the Company's filings 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 positive
effects of recent upgrades and increased minted Ether coins. 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.