VANCOUVER, Oct. 23, 2017 /CNW/ - HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (the "Company" or "HIVE") has entered into a legally binding letter agreement dated October 23, 2017 with its largest shareholder Genesis Mining Ltd. ("Genesis") under which the Company will finance the construction of a cryptocurrency mining data centre in Sweden (the "Sweden Data Centre"). The Sweden Data Centre will be a newly constructed GPU mining facility with an anticipated completion date of December 2017. The Company's cryptocurrency mining capacity or hashpower is expected to increase by approximately 175% with the addition of the Sweden Data Centre.
The Sweden Data Centre will be constructed by Genesis for consideration of an estimated US$22 million. Pursuant to a master services agreement between the Company and Genesis (the "MSA"), Genesis will be responsible for hosting, maintenance and related services for the Sweden Data Centre for a monthly fee.
Completion of the acquisition is subject to a number of conditions, including but not limited to, acceptance by the TSX Venture Exchange as required. There can be no assurance that the acquisition will be completed as proposed or at all.
Harry Pokrandt, CEO and President of HIVE stated "With the help of Genesis, Sweden represents the next stage of growth for HIVE as we continue to build our portfolio of mining facilities. HIVE is acquiring a facility in a politically stable country with access to excellent infrastructure and complements our existing facilities in Iceland. We will continue to evaluate other opportunities to ensure we provide our shareholders the best exposure to the blockchain and cryptocurrency."
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 cryptocurrency mining facilities in Iceland, which produce mined cryptocurrency like Ethereum around the clock.
For more information and to register to HIVE's mailing list, please visit www.HIVEblockchain.com, which has recently been updated. Follow @HIVEblockchain on Twitter and subscribe to HIVE's YouTube channel.
On Behalf Of HIVE Blockchain Technologies Ltd.
President, CEO and Director
The TSX Venture Exchange (the "Exchange") has in no way passed upon the merits of the acquisition and has neither approved nor disapproved the contents of this news release. Neither the Exchange nor its Regulation Services Provider (as that term is defined in policies of the 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 construction and acquisition of the Sweden Data Centre; the quantum increase of hashpower as a result of the acquisition of the Sweden Data Centre; 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, risks related to the construction, acquisition and operation of the Sweden Data Centre; the ongoing partnership with Genesis; hashpower may not increase as currently anticipated; the cryptocurrency market; the Company's ability to successfully mine cryptocurrency; 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 ongoing partnership with Genesis; historical prices of cryptocurrencies and the ability of the Company to mine cryptocurrencies 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) 609-6110