U.S. Global Investors Announces Strategic Investment in HIVE Blockchain Technologies Ltd. with Frank Holmes Becoming Chairman...
September 19 2017 - 12:57PM
U.S. Global Investors, Inc. (NASDAQ: GROW) is pleased to
announce that it has entered into a strategic investment in HIVE
Blockchain Technologies Ltd. (TSX.V:HIVE). U.S. Global Investors
has exposure to 17 million shares of HIVE.
Frank Holmes, CEO and chief investment officer of U.S. Global
Investors, has been appointed as the non-executive chairman of the
Board of Directors of HIVE.
HIVE Blockchain Technologies Ltd. commenced trading on the TSX
Venture Exchange under the ticker symbol “HIVE” effective at the
open on September 18, 2017. This follows the completion of a $16.5
million equity financing, as announced on September 7, 2017, and
the closing of the acquisition from Genesis Mining Ltd. (“Genesis”)
of a state-of-the-art GPU-based blockchain data center in
Reykjanes, Iceland and formation of a strategic partnership with
Genesis (collectively, the “Transaction”), as announced on
September 15, 2017. Genesis is the world’s largest cryptocurrency
mining firm.
“According to CoinDesk, 28 of the top 30 banks are now engaging
in blockchain proof of concepts. Goldman Sachs has even said that
‘the blockchain could disrupt…everything,’” Holmes said. “We are
excited to be part of this unique opportunity in the cryptocurrency
space and having a first-mover advantage in bringing it to
investors. HIVE is creating new coins, with the goal of selling a
portion of these and then banking the rest in order to manage this
opportunity in a fast growth industry.”
HIVE commenced mining operations and began accumulating
cryptocurrency on September 15, 2017 following closing of the
Transaction.
“Blockchain technology has the potential to fundamentally change
and lower transaction costs. HIVE’s partnership with Genesis
provides immediate exposure to operating margins of crypto mining
and a growing portfolio of coins. That makes this a unique global
company out of the gate,” Holmes said. “In addition, the Economist
reported that annual revenues earned by the banking system for
processing payments were at $1.7 trillion in 2014, which was 2
percent of global GDP at the time. Bankers are moving fast to
prevent disruptive technology from ‘Uber-izing’ their business,
just as cab companies are fighting back against ride-hailing
apps.”
Harry Pokrandt will serve as President, CEO and Director of
HIVE, while Marco Streng, co-founder and CEO of Genesis Group, will
be an advisor to HIVE. Joining Frank Holmes and Mr. Pokrandt on the
Board of Directors is Bjoern Arzt, Tobias Ebel and Olivier Roussy
Newton.
In the first quarter of fiscal year 2018, U.S. Global Investors,
Inc., through its wholly-owned subsidiary, U.S. Global Investors
(Canada) Limited (“USCAN”), purchased 10 million shares of HIVE
(approximately $2.4 million USD). In addition, USCAN purchased
shares of a fund managed by our 65 percent owned subsidiary,
Galileo Global Equity Advisors, Inc. The Galileo Partners Fund
purchased 7 million shares of HIVE. These shares are restricted and
not available for resale until January 2018. U.S. Global Investors
has approximately 15.2 million total common stock shares issued and
outstanding.
For more information about HIVE, please visit
www.HIVEblockchain.com.
About U.S. Global Investors, Inc.
The story of U.S. Global Investors goes back more than 40 years
when it began as an investment club. Today, U.S. Global Investors,
Inc. (www.usfunds.com) is a registered investment adviser that
focuses on niche markets around the world. Headquartered in San
Antonio, Texas, the Company provides money management and other
services to U.S. Global Investors Funds, U.S. Global ETFs and other
international clients.
This news release may include certain “forward-looking
statements” including statements relating to revenues, expenses,
and expectations regarding market conditions. These statements
involve certain risks and uncertainties. There can be no assurance
that such statements will prove accurate and actual results and
future events could differ materially from those anticipated in
such statements.
Attachments:
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/7fd9d8f1-a1c8-44ad-a733-8422eb888ec9
Holly Schoenfeldt
U.S. Global Investors, Inc.
210.308.1268
hschoenfeldt@usfunds.com
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