ZUG, Switzerland and VANCOUVER, Sept. 3, 2019 /CNW/ - HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTCQX:HVBTF) ("HIVE") announces that it has ended discussions concerning a proposed partnership and share swap with Argo Blockchain (LSE:ARB) ("Argo"). HIVE previously announced on May 31 that the Company had entered a non-binding letter of intent and heads of terms and a share swap agreement with Argo to explore a proposed strategic partnership.
"At the time of the announcement, our analysis indicated that Argo was significantly undervalued, and a relatively quiet stock trading below cash per share which made it an attractive investment. Today, in our opinion, it is fully valued," said Frank Holmes, Interim Executive Chairman and Interim CEO of HIVE. "Since the announcement, HIVE's global brand has ignited awareness of Argo and its stock price. After analysis we are of the opinion that the best use of cash for HIVE shareholders is to expand operations in Sweden and North-America directly rather than invest in Argo. Further, their strategy and tactics have changed. We wish them success in their future endeavors in the crypto blockchain world."
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 GPU-based digital currency mining resources in Iceland and Sweden, which produce newly minted digital currencies like Ethereum continuously as well as cloud-based ASIC-based capacity which produces newly minted digital currencies like Bitcoin. Its deployments provide 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.
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.
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, but is not limited to, the Company's expectations to orderly transition operations in Sweden and Iceland from, and to continue operations (including rebooting operations in Sweden or otherwise profitably utilizing its equipment) without, Genesis; the Company's engagement of a new service provider; the long term growth, business goals and objectives of the Company, and other forward-looking 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 rebooting of the operations in Sweden may not proceed as smoothly or as profitably than anticipated; the transition of the operations in Sweden and Iceland from Genesis to the Company may not proceed as orderly or as timely as anticipated; counterparties to agreements underlying the master services and related agreements may not consent to the transfer and assignment of such underlying agreements from Genesis to the Company, and the Company may not be able to source alternative service providers on as favourable terms; the integration of the new service provider(s) may not proceed as smoothly as anticipated; changes in economic conditions in the cryptocurrency ecosystem, fluctuations in energy prices in Sweden, or depreciation of digital assets including Ethereum and Bitcoin may adversely affect the Company's continued operations and/or profitability; the digital currency market generally; 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 the Company's ability to profitably liquidate its digital currency inventory as required; 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: Frank Holmes, Tel: (604) 664-1078