VANCOUVER, BC, June 18, 2020 /CNW/ - HIVE Blockchain
Technologies Ltd. (TSXV: HIVE) (OTCQX: HVBTF) (FSE: HBF) (the
"Company" or "HIVE") is pleased to announce that it has completed
successfully its previously announced transition of hosting and
management of its GPU-based high performance computing equipment at
its green energy-powered data centre in Iceland. The transition has resulted in an
approximately 50% reduction in monthly facilities and operations
costs and HIVE's Ethereum mining operations in Iceland are now operating with positive gross
mining margins.
HIVE now intends to further improve its profitability profile
and cash flow generation in Iceland by making certain investments to
optimize its Ethereum mining efficiency and maximize capacity while
leveraging its existing fixed cost base. These improvements include
acquiring new mining rigs to maximize available space at the
Iceland facility. HIVE will also
work with its new service provider partner Blockbase Group DWC-LLC
("Blockbase") to undertake facility improvements and refurbish as
necessary its approximately 4,000 rigs to improve mining
efficiency. Following such projects, HIVE will consider expanding
the facility.
Such capital expenditures are anticipated to cost approximately
$500,000 and be financed through cash
on hand. Financing is also anticipated to be provided through the
sale of Ether which the Company recently received from
its mining pool Ethermine, reflecting HIVE's approximate 10%
share of the distribution of an unusually large block
transaction fee processed by the mining pool last week.
"As one of the largest industrial scale miners of Ethereum
globally, HIVE was fortunate to receive its required share of an
unexpected payout. We intend to re-invest these proceeds back into
the Ethereum network by fast tracking our capital improvements in
Iceland," said Frank Holmes, Interim Executive Chairman of
HIVE.
The improvements in Iceland are
another step HIVE has undertaken to improve transparency,
accountability and profitability across its mining operations over
the past 18 months after current management came into place. HIVE
completed a similar recent transition at its flagship Ethereum
mining operations in Sweden in
late 2019, which has resulted in improved efficiency and
significantly lower operating costs.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. is a growth oriented,
TSX.V-listed company building a bridge from the blockchain sector
to traditional capital markets. HIVE owns state-of-the-art digital
currency mining facilities in Canada, Sweden, and Iceland which produce newly minted digital
currencies like Bitcoin and Ethereum continuously. Our deployments
provide shareholders with exposure to the operating margins of
digital currency mining as well as a growing portfolio of
crypto-coins.
For more information and to register to HIVE's mailing list,
please visit www.HIVEblockchain.com. Follow @HIVEblockchain on
Twitter and subscribe to HIVE's YouTube channel.
On Behalf of HIVE Blockchain Technologies Ltd.
"Frank Holmes"
Interim Executive Chairman
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. The information in this news release that are
forward-looking information, include: expected reduction in
facilities and operations costs, and positive gross mining margins
at the Company's Iceland
facilities; investment in new mining rigs and refurbishment of
existing rigs and equipment at the Company's Iceland facilities; further improvement of the
Company's profitability profile; improved efficiency and
significantly lower operating costs at the Company's Sweden facility; and the intentions, plans and
future actions of the Company.
This forward-looking information is based on reasonable
assumptions and estimates of management of the Company at the time
it was made, and involves known and unknown risks, uncertainties
and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking information. Such factors include, among
others: the COVID 19 crisis; the Company may not achieve expected
improvement in profitability or gross margins for its operations in
Iceland in the quantum as
currently anticipated, or at all; the Company may not reduce
monthly facility and operations costs, or upgrade colocation
facilities or improve efficiency and output of GPU operations as
currently anticipated, or at all; the new agreements for hosting
and management of the Company's assets in Iceland may not lead to any economic benefits
to the Company; the digital currency market; the ability to
successfully mine digital currency; revenue may not increase as
currently anticipated, or at all; it may not be possible to
profitably liquidate the current digital currency inventory, or at
all; a decline in digital currency prices may have a significant
negative impact on operations; the volatility of digital currency
prices; the Company may never realize more efficient operations, a
lower cost structure, or greater flexibility in operation; risks
relating to the global economic climate; dilution; and other
related risks as more fully set out in the Company's continuous
disclosure record filed at www.sedar.com. The Company has also
assumed that the new agreements for hosting and management of the
Company's computing equipment in Iceland will lead to increased profitability
and gross mining margins; and that no significant events occur
outside of the Company's normal course of business. Although the
Company has attempted to identify important factors that could
cause actual results to differ materially, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
information. The Company undertakes no obligation to revise or
update any forward -looking information other than as required by
law.
SOURCE HIVE Blockchain Technologies Ltd.