- HIVE Blockchain Technologies Ltd. (TSXV: HIVE) has forecast a 40 per cent reduction in power costs at its cryptocurrency mining facility in Sweden
- The 40 per cent drop in power cost is the result of a warmer-than-usual winter in Sweden
- Last year the company assumed 100 per cent of the supply chain for the facility in order to renegotiate power-supply terms
- HIVE Blockchain Shares was up 27.6 per cent, with shares currently trading for C$0.37
HIVE Blockchain Technologies Ltd. (TSXV: HIVE) has secured low-cost electricity for its Swedish cryptocurrency mining facility.
Lower-costs were already expected as the company recently renegotiated the terms at the facility to assume complete control of the site’s power-supply chain.
The initially predicted cost-decrease was 25 per cent, but today’s announcement has stated that the actual decrease will be around 40 per cent.
The decreased price is due to an unusually warm winter in Sweden, as well as the private negotiations the company has made with local power suppliers.
Low-cost power is a huge asset for a cryptocurrency mine. Large amounts of electricity are required to successfully mine new cryptocurrency.
It has been a difficult year for the company’s stock. Since January of last year, the company’s share price has dropped over 60 per cent.
HIVE stated that this is largely due to the volatility in cryptocurrency market. As one of the largest Ethereum mining companies in the world, the company’s stock has been tightly bound to the ever-changing price of Ethereum.
The company stated back in October it has now de-coupled from so directly reflecting fluctuations in Ethereum’s spot price.
While the stock has remained much steadier since then, the company’s share price has still been largely been trending negative.
HIVE Blockchain Technologies Ltd. (HIVE) was up 27.6 per cent, with shares currently trading for C$0.37.