- HIVE Blockchain (TSXV:HIVE) has doubled its global mining capacity with the acquisition of 30 megawatt facility in Lachute, Quebec
- The site was purchased from Cryptologic Corp. for a total consideration of C$4 million
- The acquisition brings HIVE Blockchain’s total global power capacity to 50 megawatts
- HIVE Blockchain (HIVE) Stock is currently up 2.7 per cent to $0.19 per share, with a market cap of $62.16 million
HIVE Blockchain (TSXV:HIVE) has doubled its global mining capacity with the acquisition of 30-megawatt facility in Lachute, Quebec.
The fully-operational site was purchased from Cryptologic Corp. and features electricity costs of 5.7 cents per kilowatt per hour. Among its primary assets are 30 megawatts of HVAC and electrical infrastructure, operational staff, and approximately 14,000 Bitmain S9 miners.
The acquisition is expected to more than double HIVE Blockchain’s current power capacity, from 20 megawatts to 50 megawatts.
HIVE Blockchain says that its next steps at the new facility are to invest in next-gen miners, as well as potentially acting as a host for third-party miners.
Frank Holmes, Interim Executive Chairman of HIVE Blockchain, said the deal was an important strategic move that diversifies the company significantly.
“The acquisition provides us with an advanced, operating Bitcoin mining facility ready to transition to next generation mining hardware with access to some of the lowest cost electricity on the planet.
“The cost per MW is less than half the industry standard,” he said.
Under the terms of the agreement, HIVE Blockchain will purchase the facility for approximately $4 million. This amount will include 15,000,000 common shares at a deemed price of $0.20, as well as $1 million cash.
The deal has already been approved by the management of both parties and will close over the next few weeks, subject to regulatory approval.
HIVE Blockchain’s current operations in Europe are working on the Ethereum network, while the new site in Quebec will mine on the Bitcoin.
HIVE Blockchain (HIVE) is currently up 2.7 per cent to $0.19 per share at 12:24pm EST.