- HIVE Blockchain Technologies (TSXV:HIVE) has completed its acquisition of a 30 megawatt cryptocurrency mining operation in Lachute, Quebec
- The acquisition will more than double the company’s current power capacity to 50 megawatts
- The facility features electricity costs of 5.7 cents per kilowatt per hour, which is at the lower end of the industry average
- HIVE Blockchain made the deal with Cryptologic Corp. for a total consideration of C$4 million
- HIVE Blockchain Technologies (HIVE) is currently up 2.17 per cent to $0.24 per share, with a market cap of $76.88 million
HIVE Blockchain Technologies (TSXV:HIVE) has completed its acquisition of a 30 megawatt cryptocurrency mining operation in Lachute, Quebec.
The deal with Cryptologic Corp. was originally announced on March 30 this year.
Fully operational, the site features electricity costs of 5.7 cents per kilowatt per hour. Its primary assets include 30 megawatts of HVAC and electrical infrastructure, operational staff, and approximately 14,000 Bitmain S9 miners.
The acquisition will double HIVE Blockchain’s current power capacity to 50 megawatts, making it one of the largest publicly-listed cryptocurrency miners in the world.
In addition, the new facility will provide significant diversification to the company’s operations both geographically and in terms of blockchain network.
Frank Holmes, Interim Executive Chairman of HIVE Blockchain, said he is extremely pleased to have closed the acquisition.
“The acquisition provides us direct control of our destiny, including significant capacity for expansion and flexibility for our future operations.
“To that end, we have exercised an option to extend the term of the facility lease to November 2025, and we plan to invest in next generation SHA-256 miners to increase the operating efficiency of the facility and prepare it for the upcoming halving of Bitcoin rewards,” he added.
As consideration for the acquisition, HIVE Blockchain issued C$1 million in cash to Cryptologic Corp., as well as 15,000,000 common shares at a deemed price of $0.20 each. As such, Cryptologic Corp. now owns approximately 4 per cent of HIVE Blockchain’s outstanding common shares.
Further to this, the company plans to invest at least $3 million more in new cryptocurrency mining equipment.
“Additionally, we are currently investigating the potential to host third-party miners to maximize utilization of the facility’s power capacity,” Frank concluded.
HIVE Blockchain Technologies (HIVE) is currently up 2.17 per cent to $0.24 per share at 1:18pm EST.