Phase 1 completed on budget and will scale significantly throughout 2018
BODEN, Sweden and VANCOUVER, Jan. 15, 2018 /CNW/ - HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTC:HVBTF) (the "Company" or "HIVE") is pleased to announce the completion of the first phase ("Sweden Phase 1") of a multi-phase build-out of a large-scale GPU-based mining complex in Sweden. HIVE's Sweden Phase 1 operation commenced mining Ethereum on January 15, 2018 and increases the Company's energy consumption dedicated to cryptocurrency mining by over 175% to 10.6MW. HIVE is fully financed to add an additional 13.6MW of GPU mining capacity in Sweden by April 2018 and a further 20.0MW of ASIC mining capacity, facilities capable of mining Bitcoin and Bitcoin Cash, by September 2018. HIVE's expansion into Sweden diversifies the Company's existing operations located in Iceland, where it has been producing newly mined digital currency continuously since September 2017.
"I am delighted to launch HIVE's largest and most advanced mining facility to date in Sweden, another stable, cold climate jurisdiction with access to abundant green energy, to further capitalize on rising cryptocurrency prices," said Harry Pokrandt, CEO and Director of HIVE.
Sweden Phase 1 is the first digital currency mining facility jointly constructed by HIVE and Genesis Mining Ltd. ("Genesis"), the world's largest digital currency mining hashpower provider. Sweden Phase 1 was completed on budget and utilizes custom Genesis-designed A2 mining rigs that are more efficient than prior generations. Genesis is HIVE's strategic partner and major shareholder and operates the Company's facilities under a master services agreement.
"HIVE and Genesis are building the backbone infrastructure for the blockchain sector," said Marco Streng, Co-Founder and CEO of Genesis Group. "Sweden Phase 1 leverages Genesis' years of experience and knowledge gained by creating the leading cryptocurrency mining company, and is highly scalable for future growth. More than twenty Genesis personnel are dedicated to HIVE's multi-phase Sweden expansion. I would like to congratulate the team and stakeholders on the successful launch of our first new facility together, and look forward to capitalizing on the rapid growth of HIVE and the blockchain sector."
Sweden Phase 1 has commenced mining Ethereum and is capable of mining all other GPU-based digital currencies, including Ethereum Classic, ZCash, and Monero. Since HIVE acquired its first large-scale digital currency mine in September 2017, the price of Ethereum has increased by more than 400% with the global market for cryptocurrencies growing from approximately US$120 billion to over US$700 billion.
The Company has raised over C$200 million since September 2017. After financing HIVE's planned expansions, the Company will retain approximately C$55 million in working capital, providing flexibility for future growth opportunities and investments.
OTC Ticker Symbol Change to HVBTF
HIVE announces that FINRA approved a change in the Company's stock symbol trading on the OTC Markets. On January 12, 2018, the Company's common shares traded on the OTC Markets under the new symbol "HVBTF" (OTC:HVBTF). The previous trading symbol was "PRELF". There is no action required by current shareholders in connection with this change.
HIVE continues to trade on the TSX Venture Exchange under the symbol "HIVE".
Appointment of Renmark Financial Communications Inc.
HIVE is also pleased to announce that it has retained Renmark Financial Communications Inc. ("Renmark") for strategic investor relations. Under the terms of the agreement, HIVE will pay Renmark a monthly fee of up to C$8,000 starting January 1, 2018 for a period of six months ending on May 31, 2018 and monthly thereafter. Neither Renmark nor any of its executives have an ownership interest, directly or indirectly, in HIVE or its securities.
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, and provides shareholders with exposure to the operating margins of digital currency mining as well as a growing portfolio of crypto-coins.
On Behalf Of HIVE Blockchain Technologies Ltd.
President, CEO and Director
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 Company's build-out and expansion of digital currency operations into Sweden and expected timing thereon; the expected electrical and mining capacity in Sweden; 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 construction and operation of the digital currency mining centre in Sweden may not occur as currently planned, or at all; the ongoing partnership with Genesis; the quantum of electrical consumption and mining capacity at the digital currency mining centres in Sweden may not materialize as currently anticipated, or at all; the digital currency market; the Company's ability to successfully mine digital currency; revenue of the Company may not increase as currently anticipated, or at all; 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.
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 the Company's ability to complete the construction of digital currency operations in Sweden; 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.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
SOURCE HIVE Blockchain Technologies Ltd.
For further information: Harry Pokrandt, Tel: (604) 664-1078