Phase 2 of Sweden Expansion puts HIVE on track to Reach 44.2MW by September 2018; Growth Strategy Sustains Profitability
Boden, Sweden and Vancouver, Canada – HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTC:HVBTF) (the "Company" or "HIVE") is pleased to announce the completion of the second phase ("Sweden Phase 2") of a multi-phase build-out of a large-scale GPU-based mining complex in Sweden. The Sweden Phase 2 operation commenced mining at the end of March 2018 and increases the Company's run-rate energy consumption dedicated to cryptocurrency mining by 6.8 megawatts ("MW") to 17.4 MW, an increase of 65%.
Sweden Phase 2 expands 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 2 utilizes custom Genesis-designed A2 mining rigs that are over 25% more efficient than prior generations. Going forward, HIVE is fully financed to add a further 6.8 MW of GPU-based mining capacity in Sweden in April 2018, and an additional 20.0 MW of ASIC-based mining capacity, capable of mining Bitcoin and Bitcoin Cash, by September 2018, being total capacity of 44.2 MW.
"The completion of Sweden Phase 2 represents an important milestone for the Company as HIVE continues to grow operations and execute its 2018 development pipeline. Despite recent crypto market conditions, HIVE's current run-rate gross mining margins continue to be very healthy, and our operating costs on the first phase of Sweden to date have been materially lower than expected. This growth in our assets and sustained profits combined with our excess cash on hand has us well positioned to continue creating growth and shareholder value" said Harry Pokrandt, CEO and Director of HIVE.
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.
For more information and to register to HIVE’s mailing list, please visit www.HIVEblockchain.com. Follow @HIVEblockchain on Twitter and subscribe to HIVE’s YouTube channel.
On behalf of HIVE Blockchain Technologies Ltd.
President, CEO and Director
HIVE Investor Relations Contact:
Tel: (604) 664-1078
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. Forward-Looking Information 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 ongoing build-out and expansion of digital currency operations into Sweden and expected timing thereon; the expected electrical and mining capacity of built-out facilities in Sweden; continued growth and shareholder value; 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, operation and electricity consumption of the built-out digital currency mining centres 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 ongoing partnership with Genesis; 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; 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 http://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 complete the construction of the built-out digital currency operations in Sweden; the quantum of electricity consumption at built-out facilities; 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. Additionally, gross mining margins referred to in this news release are also based on assumptions set out herein and are based upon management's best estimates but are inherently speculative and there is no guarantee that such assumptions and estimates will prove to be correct. 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.