ZUG, SWITZERLAND and VANCOUVER, Aug. 15, 2018 /CNW/ - HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTC:HVBTF) (the "Company" or "HIVE") is pleased to announce it will launch 200 Petahashes ("PH") of cloud based SHA-256 mining power ("Cloud Mining") in September 2018. The Cloud Mining is an amendment to the terms of HIVE's previous December 2017 agreement with Genesis Mining Ltd. ("Genesis") to add 200 PHs of SHA-256 capacity in Sweden. Under the revised agreement, 200 PHs will be provided pursuant to a cloud hosting arrangement until delivery of the mining rigs occurs within the next twelve months. The amendment allows for lower operating costs than was previously expected of taking delivery of the miners in Sweden and gives HIVE flexibility to install the future delivery of the mining rigs in an advantageous region, which is anticipated to be in a facility in North America. As previously announced, production is expected to commence on September 30, 2018.
The strategic decision to implement cloud based deployment with its technology partner, Genesis, allows the Company to benefit from more cost-effective mining operations and enhances HIVE's operational flexibility by enabling the Company to more quickly adapt to changing network conditions across multiple geographies.
As planned, the upcoming mining power diversifies the mining capacity of the Company by introducing the ability to mine SHA-256 ASIC-based coins which will have an immediate positive impact on growing HIVE's already sizeable coin inventory.
"HIVE remains dedicated to adding additional low cost capacity to our mining network and we continue to work with our partners at Genesis who remain flexible and committed to helping HIVE explore best alternatives." said Harry Pokrandt, CEO and Director of HIVE. "The deployment of 200 PHs nearly doubles the Company's mining power, bringing total capacity to 44 MW across the HIVE network and further expands our business model; we will soon be mining Bitcoin and can add other SHA-256 coins, including Bitcoin Cash. We will continue to look for additional opportunities to deploy capital within the blockchain ecosystem and to build upon the positive financial results that we announced in July."
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 is strategically partnered with Genesis Mining Ltd. to build the next generation of blockchain infrastructure. HIVE owns state-of-the-art GPU-based digital currency mining facilities in Iceland and Sweden, which produce newly minted digital currencies like Ethereum continuously as well as cloud-based ASIC-based capacity which produce newly minted digital currencies like Bitcoin. Our deployments provide shareholders with exposure to the operating margins of digital currency mining as well as a growing portfolio of crypto-coins.
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.
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. "Forward-looking information" in this news release includes information about the quantum and timing of PH Cloud Mining to be provided by Genesis; the timing, delivery and location of mining rigs by Genesis to the Company; expected commencement date of production from mining rigs to be provided by Genesis; mining of SHA-256 ASIC-based coins (including Bitcoin) and immediate positive impact; estimated total capacity of electrical consumption; additional opportunities to deploy capital within the blockchain ecosystem; long term growth of the Company; the business goals and objectives of the Company, and other forward-looking information includes but is not limited to information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the PH Cloud Mining may not be provided by Genesis in the quantum or within the timeframe currently expected, or at all; Genesis may not deliver mining rigs to the Company on the terms or timing currently anticipated, or at all;
PH Cloud Mining and/or the mining rigs to be delivered by Genesis may not operate on commercially beneficial terms at all to the Company; regulators may not allow the Company to proceed with the transactions contemplated herein on the terms set forth, or at all; the ongoing partnership with Genesis; the digital currency market; the Company's ability to successfully mine digital currency; the Company may not be able to profitably liquidate its current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on the Company's operations; the volatility of digital currency prices; and other related risks as more fully set out in the Filing Statement of the Company dated September 13, 2017 and other documents disclosed under the Company's filings at www.sedar.com.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about Genesis' ability to provide the PH Cloud Mining to the Company; Genesis' ability to delivery mining rigs to the Company; the Company will be able to profitably liquidate its digital currency inventory as required; the Company's ongoing partnership with Genesis; historical prices of digital currencies and the ability of the Company to mine digital currencies will be consistent with historical prices; and there will be no regulation or law that will prevent the Company from operating its business. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
SOURCE HIVE Blockchain Technologies Ltd.
For further information: Harry Pokrandt, Tel: (604) 664-1078