ZUG, Switzerland and VANCOUVER, Jan. 2, 2019 /CNW/ - HIVE Blockchain Technologies Ltd. (TSX.V : HIVE) (OTC:HVBTF) (the "Company" or "HIVE") is pleased to announce that it has received regulatory approval from the TSX Venture Exchange ("TSXV") for the previously announced deployment of 100 Petahashes ("PH") of cloud-based ASIC mining capacity, a 50% increase to 300 PH, which has been deployed to mine Bitcoin and related cryptocurrencies.
The approval for the increased ASIC capacity comes as Ethereum has experienced a surge in value by more than 70% since early December 2018. HIVE continues to mine Ethereum using assets with cumulative GPU capacity of 24.2 Megawatts ("MW") located in Iceland and Sweden.
"I am pleased that we have received regulatory approval related to the deployment of 100 Petahashes of ASIC mining capacity at economic terms that we consider favourable for HIVE in a volatile cryptocurrency market." said Frank Holmes, Interim Executive Chairman. "We believe that the transaction, which included the issuance of shares at levels meaningfully higher than the stock was trading, shows tremendous support by our partners and demonstrates the many benefits of our strategic partnership with Genesis. HIVE remains bullish on the long-term value of blockchain applications and the role that Bitcoin and Ethereum will play in the ecosystem despite continued volatility of cryptocurrency prices."
"The surge in Ethereum pricing since early December is impressive, now up more than 70% since setting new lows for 2018 last month." added Frank Holmes. "We continue to participate in the Ethereum ecosystem using our facilities in Iceland and Sweden and HIVE maintains an inventory of Ethereum and Bitcoin as we are bullish on the long-term potential of cryptocurrencies broadly."
On November 30, 2018, HIVE announced that it had reached an agreement with Genesis to deploy 100 PH of ASIC mining capacity at a cost of US$6 million, payable as US$2.5 million in cash or Ethereum and an additional $3.5 million in the form of 8,317,490 common shares, valued at approximately C$0.55 per share, a significant premium to HIVE's trading price. The 8,317,490 common shares issued pursuant to the closing of this agreement are subject to a hold period until May 3, 2019. As previously announced, the cost per Petahash is significantly reduced versus previous ASIC deployments and the agreement includes a 6-month option, starting January 1, 2019, for HIVE to add a further 100 PH's at the same economic terms.
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.
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 information about the benefits of partnership with Genesis; the long term value of blockchain applications, potential of cryptocurrencies broadly and the role that Bitcoin and Ethereum will play despite volatility of cryptocurrency prices; the six month option, starting January 1, 2019, for HIVE to add a further 100 PHs; the 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 volatility of digital currency prices; a decline in digital currency prices may have a significant negative impact on the Company's operations; the Company may exercise its option to add a further 100 PHs; 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; 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 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: Frank Holmes, Tel: (604) 664-1078