VANCOUVER, BC, July 6, 2020 /CNW/ - HIVE Blockchain
Technologies Ltd. (TSX.V: HIVE) (OTCQX: HVBTF) (FSE: HBF) (the
"Company" or "HIVE") is pleased to announce that it has ordered 200
Bitmain Antminer S17e 60 Terahash per second (TH/s) SHA 256 mining
machines as it continues to scale up next generation mining power
at its green energy-powered bitcoin mining operation in
Quebec.
The cost for the S17e machines was approximately US$950 per unit, or just under US$0.2 million, financed through the Company's
cash. Delivery and installation of the new mining equipment is
anticipated to occur in July.
Following installation, excluding further purchases, HIVE
estimates its aggregate operating hash rate specifically from next
generation mining equipment at its Quebec facility, will be approximately 131
Petahash per second (PH/s), utilizing less than 6 MW
power. This equates to approximately 22.6 PH per megawatt ("MW") of
power, which HIVE believes is one of the most energy efficient
bitcoin mining operations in Canada.
While the COVID-19 pandemic has impacted logistics and the
supply of new bitcoin miners manufactured in Asia, today's announced purchase is HIVE's
third purchase of next generation bitcoin mining equipment over the
past two months, totalling approximately US$2.35M with the amounts paid through cash on
hand. As part of its strategy to maximize the capacity and
efficiency of its facility, HIVE intends to continue utilizing cash
flow to make opportunistic investments in the facility. These
investments include installing next generation mining equipment
that can provide positive gross mining margins post the
May 2020 halving of bitcoin rewards;
the next halving is scheduled to occur in 2024.
Consulting Agreement
The Company also announced that it entered into a consulting
agreement (the "Consulting Agreement") with Robby Chang (the "Consultant") dated
December 4, 2019. Pursuant to the
Consulting Agreement, the Consultant agreed to provide strategic
consulting services to the Company in consideration for a monthly
fee of C$10,000. In addition,
pursuant to the Consulting Agreement and in connection with the
successful acquisition of the dedicated cryptocurrency mining
operation as announced on April 8,
2020, the Company agreed to pay to the Consultant a one-time
payment of 100,000 common shares in the capital of the Company and
C$10,000. Issuance of the common
shares to the Consultant is subject to regulatory approval
including the approval of the TSX Venture Exchange.
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 digital
currency mining facilities in Canada, Sweden, and Iceland which produce newly minted digital
currencies like Bitcoin and Ethereum continuously. 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. The information in this news release that are
forward-looking information include: the purchase, delivery and
installation of Bitmain Antminer S17e SHA 256 mining machines at
the Company's facility in Quebec;
the Company's estimated aggregate operating hash rate and power
utilization; further mining purchases; scaling up of mining power
from next generation mining equipment; and the intentions, plans
and future actions of the Company. This forward-looking information
is based on reasonable assumptions and estimates of management of
the Company at the time it was made, and involves known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
information. Such factors include, among others: the COVID 19
crisis; the delivery and installation of ordered equipment may not
occur as currently anticipated, or at all; the Company may not
achieve operating hash rate, power utilization, efficiencies or
profitability as currently anticipated, or at all; the digital
currency market; the ability to successfully mine digital currency;
revenue may not increase as currently anticipated, or at all; it
may not be possible to profitably liquidate the current digital
currency inventory, or at all; a decline in digital currency prices
may have a significant negative impact on operations; the
volatility of digital currency prices; the Company may never
realize more efficient operations, a lower cost structure, or
greater flexibility in operation; risks relating to the global
economic climate; dilution; and other related risks as more fully
set out in the Company's continuous disclosure record filed at
www.sedar.com. The Company has also assumed that delivery and
installation of recently ordered equipment will occur as expected,
and no significant events occur outside of the Company's normal
course of business. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such statements will prove to be accurate as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking information. The Company undertakes no
obligation to revise or update any forward -looking information
other than as required by law.
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SOURCE HIVE Blockchain Technologies Ltd.