As crypto starts to heat back up, it may pay to note that HIVE Blockchain Technologies Ltd (OTCMKTS:HVBTF) just announced that it has completed its previously announced acquisition of a dedicated cryptocurrency mining operation with access to 30 megawatts of low-cost green power at a leased facility located in Lachute, Quebec from Cryptologic Corp.
According to the release, “The
purchase price of approximately C$4.0 million was satisfied through C$1,000,000
in cash, being the cash portion of the purchase price, C$956,230.60
representing the estimated closing working capital comprised substantially of
prepaid and deposits less a holdback amount and the issuance of 15,000,000
common shares (“HIVE Shares”) to Cryptologic at a deemed price of
C$0.20 per HIVE Share. In addition, HIVE will invest at least C$3.0 million in
new cryptocurrency mining equipment for the Facility. Cryptologic now owns approximately
4% of HIVE’s basic common shares, with the HIVE Shares subject to customary
resale and transfer restrictions.”
HIVE Blockchain Technologies
Ltd (OTCMKTS:HVBTF) trumpets itself as a company that operates in the
cryptocurrency mining space.
It engages in the mining and
sale of digital currencies, such as Ethereum, Ethereum Classic, and ZCash.
The company was formerly known
as Leeta Gold Corp. and changed its name to HIVE Blockchain Technologies Ltd.
in September 2017. HIVE Blockchain Technologies Ltd. was incorporated in 1987
and is headquartered in Vancouver, Canada.
According to company materials, “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 produces 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.”
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As noted above, HVBTF just announced that it has completed its previously announced acquisition of a dedicated cryptocurrency mining operation with access to 30 megawatts of low-cost green power at a leased facility located in Lachute, Quebec from Cryptologic Corp.
Recent action has seen a bit
more than 120% tacked on to share pricing for the name in the past month. Furthermore,
the stock has seen interest climb, with an increase in recent trading volume of
49% over what the stock has registered over the longer term.
“We’re extremely pleased
to have completed the acquisition of this Facility,” said Frank Holmes,
Interim Executive Chairman of HIVE. “Multiple factors make Quebec a very
attractive location for us including geographic diversification and competitive
costs for green energy, skilled labor and taxes.
Currently trading at a market capitalization of $95M, HVBTF has a significant war chest ($12.4M) of cash on the books, which stands against about $7.4M in total current liabilities. HVBTF is pulling in trailing 12-month revenues of $42.9M. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -40.8%. We will update the story again as soon as further details emerge. Sign-up for continuing coverage on shares of $HVBTF stock, as well as other hot stock picks, get our free newsletter today, and get our next breakout pick!
Disclosure: we hold no position in $HVBTF, either long or
short, and we have not been compensated for this article.