64-Hectare property provides the Company with
significant expansion opportunities
BALLANGEN, Norway and
VANCOUVER, May 22, 2018 /CNW/ - HIVE Blockchain Technologies
Ltd. (TSX.V:HIVE) (OTC:HVBTF) (the "Company" or "HIVE") is pleased
to announce the closing of its acquisition of Kolos Norway AS
("Kolos") and its 64-Hectare property in Ballangen, Norway (the "Norway Acquisition") as
previously announced in the Company's news release dated
March 26, 2018. The acquisition of
the property supports HIVE's ongoing strategy of acquiring and
developing assets with access to low-cost power in cold climates
and supplies the Company with extensive flexibility to expand the
business. The Company currently operates cryptocurrency mining
facilities in Iceland and
Sweden with 24.2 megawatts ("MW")
of energy consumption and is fully funded for an expansion of an
additional 20 MW of SHA-256 ASIC mining capacity in Sweden to be completed by September
2018.
![The Kolos property is located in a natural corridor surrounded by mountainous terrain and water, providing a physical security barrier for the proposed data centre and natural cooling of computing equipment. (CNW Group/HIVE Blockchain Technologies Ltd.) The Kolos property is located in a natural corridor surrounded by mountainous terrain and water, providing a physical security barrier for the proposed data centre and natural cooling of computing equipment. (CNW Group/HIVE Blockchain Technologies Ltd.)](https://mma.prnewswire.com/media/694726/HIVE_Blockchain_Technologies_Ltd__HIVE_Blockchain_Completes_Acqu.jpg)
"I am extremely pleased by the completion of the acquisition of
Kolos which provides HIVE the capability to rapidly expand our
footprint in the Nordic region and maintains HIVE's position as a
leading blockchain and cryptocurrency infrastructure company," said
Harry Pokrandt, CEO and Director of
HIVE. "The property supplies near term access to an additional 30
MW of capacity and provides HIVE a deep pipeline of opportunities
for many years to come. I would like to commend the team at
HIVE for their tireless work to complete the Norway
Acquisition."
HIVE completed the Norway Acquisition through a series of
agreements pursuant to which HIVE acquired all of the issued and
outstanding shares of Kolos for cash consideration in the amount of
NOK 55,580,410 (approximately US
$7.22 million), the issuance of
4,750,000 common shares of the Company (the "Shares") and 1,250,000
warrants to purchase common shares of the Company (the "Warrants"),
and the assumption of NOK 20,915,000
(approximately US $2.72 million) of
liabilities. The Warrants and 2,650,000 of the Shares issued are
subject to vesting provisions set as a combination of fixed time
periods and milestones for the construction and commencement of
cryptocurrency mining in Norway.
The Warrants are exercisable for a period of 5 years from the date
of issuance and have an exercise price of $1.24. The Shares and Warrants issued pursuant to
the Norway Acquisition are subject to a hold period until
September 23, 2018.
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, and provides 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.
"Harry Pokrandt"
President, CEO and Director
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 Company's expansion of
cryptocurrency mining operations in Sweden, including the expected quantum of
electricity consumption; the proposed development and completion of
a cryptocurrency mining facility in Norway; the quantum and timing of electricity
consumption capacity in Norway;
the 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 complete its planned
expansion in Sweden; the Company
may not complete the construction of the data centre in
Norway on terms favourable to the
Company, or at all; construction and operation of the data centre
in Norway may not occur as
currently planned, or at all; the data centre in Norway may not receive the hydro electrical
supply contemplated herein, or at all; the data centre in
Norway, once constructed, may not
operate on a scale (electrical consumption and output of digital
currency) currently anticipated, and may not operate on
commercially beneficial terms at all to the Company; 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 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 Company's
ability to complete its expansion in Sweden; the Company's ability to complete the
construction of digital currency operations in Norway; 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.
![HIVE Blockchain Technologies Ltd. (CNW Group/HIVE Blockchain Technologies Ltd.) HIVE Blockchain Technologies Ltd. (CNW Group/HIVE Blockchain Technologies Ltd.)](https://mma.prnewswire.com/media/694724/HIVE_Blockchain_Technologies_Ltd__HIVE_Blockchain_Completes_Acqu.jpg)
SOURCE HIVE Blockchain Technologies Ltd.