HIVE acquires 3,019 miners from subsidiary Digital Currency Group

July 16, 2021


HIVE acquires 3,019 miners from subsidiary Digital Currency Group

Toronto Stock Exchange and Nasdaq-listed mining company HIVE Blockchain has acquired 3,019 MicroBT WhatsMiner M30S miners from Foundry Digital LLC, a subsidiary of Digital Currency Group.

The aggregate processing power of the new ASIC devices is estimated to be 264 PH/s. The equipment has already been deployed at HIVE's facilities in Lachute, Quebec and Grand Falls, Canada, but integration will take place after the deal closes.

The move will allow the Canadian company to increase its hash rate by 46%. Given the current complexity and price of bitcoin, HIVE will generate $80,000 in additional revenue each day, according to a press release.

As part of the agreement, Foundry will receive cash and 1.5 million warrants, each entitling it to purchase one HIVE common share for two years at CAD$3.11 (~$2.49) per security. The parties did not disclose other financial terms of the deal.

MicroBT's website indicates that the price of the new WhatsMiner M30S devices starts at ¥73,445 (~$11,300).

The companies have also agreed a partnership - HIVE will provide its computing power to the Foundry USA Pool, which includes Blockcap, Hut8, Bitfarms and Foundry itself.

   "Joining the North American pool furthers our goal of increasing transparency and accountability to our partners. Capacity is migrating from east to west and we are excited to be a part of that," said HIVE executive chairman Frank Holmes.

The company noted that the new devices will allow it to increase its bitcoin reserve on its balance sheet. HIVE currently holds 605 BTC in reserves. The organisation plans to ramp up its hash rate to 1 EH/s by the end of August.

HIVE shares were listed on Nasdaq under the ticker HVBT in June. At the time of writing, the securities are priced at $2.59 - up 3.5% during the pre-trade period.

HIVE executive chairman

Recall that HIVE sold its Norwegian subsidiary Kolos Norway AS to the local municipality of Narvik in May due to the cancellation of electricity subsidies.

In January, the company purchased 6,400 Avalonminer 1246 miners from Chinese manufacturer Canaan Creative with delivery until the end of 2021.

In November 2020, HIVE doubled its mining capacity with the purchase of 1,240 WhatsMiner M30S units.

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Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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