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HIVE Blockchain Announces Growth Plan to 6 EH/S, Corporate Updates and Establishment of At-The-Market Equity Program
Tuesday, May 16, 2023Company Profile | Follow Company
HIVE Blockchain Announces Growth Plan to 6 EH/S, Corporate Updates and Establishment of At-The-Market Equity Program
Vancouver, BC, May 16, 2023--(T-Net)--HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (Nasdaq:HIVE) (FSE:HBFA.F) announced today its updated growth target to 6 Exahash per second (all amounts in US dollars, unless otherwise indicated).
HIVE's near-term target is 4 Exahash for calendar Q2 2023 through the secured orders of 1.26 Exahash of new generation Bitcoin mining ASICs, to grow our target hashrate by 33%.
HIVE's management team says it has been carefully evaluating ASIC purchase opportunities, deploying capital for orders that would allow for optimum cash flow return on invested capital, while also introducing more efficient machines to their global fleet.
Immediate Growth Overview:
o Purchased 3,600 Bitmain S19j Pro+ miners for a total of 439 PH/s
o Purchased 1,169 Bitmain S19j Pro miners for a total of 117 PH/s
o Purchased 1,100 Bitmain S19 XP miners for a total of 154 PH/s
o Launched production of 5,000 BuzzMiner Plus units, for a total of 550-650 PH/s
Strategic Insight:
HIVE says it has successfully utilized and continues to optimize its hybrid strategy for expansion, to opportunistically sell Bitcoin when it is accretive to do so, or issue shares to grow their Bitcoin HODL position. HIVE's approach to maximize cashflow return on invested capital has allowed the company to minimize shareholder dilution, while also keeping a strong Bitcoin HODL balance, according to the company.
The Company notes that other publicly traded Bitcoin miners may only issue shares to fund their business and expansions, in order to HODL all their Bitcoin. Whereas other miners may sell all their Bitcoin HODL to fund their business or expansions.
HIVE announced the appointment of Luke Rossy to the position of Vice President of Operations. Luke has been with HIVE for the last two years, as our Senior Developer & Operations Manager, where he has been a tremendous resource, and eager to learn.
"Luke has demonstrated an aptitude for problem solving in the technical realm, alongside his expert level analysis skills. By expanding his horizons and taking on more executive level tasks, we are excited to see Luke grow" said the company in a release.
Aydin Kilic, PRESIDENT & COO, HIVE Blockchain Technologies Ltd.
Aydin Kilic, CEO of HIVE Blockchain stated "I have worked very closely with Luke for the last 2 years, he has been an exceptional team member, with incredible focus and a tireless work ethic. I believe he will make a great executive and as we have a lean management team at HIVE, his diverse skillset helps us navigate day to day hurdles as we strive for excellence".
ATM Financing to Fast Track Growth Strategy and Build HODL Position
The Company also announced that it has entered into an equity distribution agreement with Stifel GMP and Canaccord Genuity Corp. to establish an at-the-market offering of common shares in the capital of the Company on the facilities of the TSX Venture Exchange ("TSXV").
Frank Holmes, EXECUTIVE CHAIRMAN, HIVE Blockchain Technologies Ltd.
Frank Holmes, Executive Chairman of HIVE commented, "I am thrilled this is the first time two large independent brokers in Canada are in partnership with us on an ATM financing. This financing will allow us to grow our Bitcoin HODL and Exahash mining capacity".
The Company estimates that with each additional 30MW of infrastructure, utilizing ASICs with an efficiency of 30 J/TH, it will be able to add 1 Exahash of Bitcoin mining capacity, at an approximate cost of $30,000,000. Therefore, with the right opportunities, proceeds from the ATM financing could potentially allow the Company to add an additional 3 Exahash to its operating footprint, including infrastructure and ASICs.
This would represent approximately a 100% growth to the Company's current ASIC operating capacity of 3.15 Exahash, to achieve its growth target of 6 Exahash.
By introducing machines with better joules per Terahash ("J/TH") efficiency, while also procuring these machines at attractive $/TH price, the company says it strives to optimize near-term repayment of their investments from cashflow operating these machines.
Furthermore, the company analyzes possible scenarios where mining revenues may drop in the time periods surrounding the halving event, and thus strives to ensure that the machines purchased will have positive gross mining margins for as long as possible after the initial investment has been paid off.
Therefore, an optimal balance between J/TH efficiency realized and $/TH price paid must be sought. The company's goal is that these investments become free cash flow generating assets, to get the best cash flow return on invested capital as publicly traded Bitcoin miner.
Pursuant to the Equity Distribution Agreement, the Company may, from time to time, sell up to $100 million of Common Shares. The Company intends to use the net proceeds of the ATM Equity Program, if any, principally for general corporate and working capital requirements, funding ongoing operations, to repay indebtedness outstanding from time to time, to complete future acquisitions, or for other corporate purposes.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. went public in 2017 as the first cryptocurrency mining company listed for trading on the TSX Venture Exchange with a green energy focus.
HIVE is a growth-oriented technology stock in the emergent blockchain industry. As a company whose shares trade on a major stock exchange, we are building a bridge between the digital currency and blockchain sector and traditional capital markets. HIVE owns state-of-the-art, green energy-powered data centre facilities in Canada, Sweden, and Iceland, where we endeavour to source green energy to mine digital assets such as Bitcoin on the cloud.
Since the beginning of 2021, HIVE has held in secure storage the majority of its treasury of ETH and BTC derived from mining rewards. Our shares provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of Bitcoin. Because HIVE also owns hard assets such as data centers and advanced multi-use servers, we believe our shares offer investors an attractive way to gain exposure to the cryptocurrency space.
Additional Details About The Equity Distribution Agreement
The Common Shares will be distributed at trading prices prevailing at the time of the sale, prices may vary between purchasers and during the period of distribution. The volume and timing of sales, if any, will be determined at the sole discretion of the Company's management and in accordance with the terms of the Equity Distribution Agreement.
To date, no Common Shares have been distributed by the Company pursuant to the Equity Distribution Agreement. Sales of Common Shares, if any, under the ATM Equity Program are anticipated to be made in transactions that are deemed to be "at-the-market distributions" as defined in National Instrument 44-102 - Shelf Distributions, as sales made directly on the TSXV or any other recognized Canadian "marketplace" within the meaning of National Instrument 21-101 - Marketplace Operation.
The ATM Equity Program is being made pursuant to a prospectus supplement dated May 10, 2023 (the "Prospectus Supplement") to the Company's short form base shelf prospectus dated May 1, 2023 (the "Base Shelf Prospectus"), filed with the securities regulatory authorities in each of the provinces and territories of Canada.
The Prospectus Supplement (as well as the related Base Shelf Prospectus) is available at the Company's profile on the SEDAR website maintained by the Canadian Securities Administrators at www.sedar.com.
This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or in any jurisdiction where the offer, sale or solicitation would be unlawful. The Common Shares referred to in this news release may not be offered or sold in the United States absent registration or an applicable exemption from registration.
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 with respect to information about the Offering and the use of proceeds, potential dilution and application of the Penalty Provision; business goals and objectives of the Company; and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon. [ MORE ] |
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HIVE Digital Technologies Ltd.
Vancouver (Other Tech Sectors)
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