Newly formed HIVE Blockchain acquires 2nd crypto mining center

HIVE expands hashpower by over 70% with Second Data Centre and strengthens partnership with Genesis Mining

HIVE Blockchain Technologies (HIVE) announced today the company has entered into a legally binding letter of intent (LOI) dated September 21, 2017, with its 30% shareholder Genesis Mining Ltd. (Genesis) under which the company and Genesis intend to move forward with the purchase, sale, and maintenance of an additional cryptocurrency mining data centre located in Reykjanes, Iceland.

HIVE’s cryptocurrency mining capacity or hashpower is expected to grow by over 70% with the additional centre. The LOI is a follow-on of the transaction agreement among HIVE and Genesis, as well as a Master Equipment Purchase Agreement and a Master Services Agreement (MSA), all executed on September 13, 2017.

The second mining centre will be acquired from Genesis for consideration of C$5,000,000 and 2,000,000 common shares of the company, as well as a revision of the monthly fees pursuant to the MSA, to support the second data centre. Genesis has the option to subscribe for additional common shares of the company in the offering to maintain their 30% ownership of the company.

[perfectpullquote align=”full” cite=”Marco Streng, Co-Founder of Genesis Group and an Advisor to HIVE” link=”” color=”” class=”” size=””]“On behalf of Genesis Mining, we are very pleased to see the strong support of HIVE in the public markets. We look forward to continuing to work with the team of HIVE to further leverage this opportunity.”[/perfectpullquote]

Bought-Deal Financing

HIVE today also announced that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P., pursuant to which they have agreed to purchase, on a bought deal basis, 20,000,000 common shares of the company at a price of C$1.50 per share for aggregate gross proceeds of C$30,000,000. The president’s list is expected to make up 25% of the purchase. In connection with the offering, HIVE may pay a cash fee of up to 6% of the gross proceeds of the offering, payable at closing.

The offering will take place by way of a private placement to accredited investors in such provinces of Canada as the underwriters may designate, and otherwise in those jurisdictions where the offering can lawfully be made on a private placement basis. All shares issued under the offering will be subject to a four-month and one day hold period from the date of issue in accordance with applicable securities laws in Canada, and potentially additional restrictions under the laws of other jurisdictions in which the offering may be made.

The offering is expected to close on or about October 11, 2017.

The net proceeds are expected to be used for the purchase of the second data center (as defined above) and for general working capital purposes.

[perfectpullquote align=”full” cite=”Harry Pokrandt, CEO HIVE Blockchain” link=”” color=”” class=”” size=””]“This transaction significantly expands HIVE’s mining capacity for minimal dilution to existing shareholders. We are pleased to strengthen our partnership with Genesis Mining and consolidate Iceland, a leading jurisdiction for cryptocurrency mining due to its low energy costs, cool climate, and reliable internet connectivity. We are also pleased to welcome the support of GMP and new investors.”[/perfectpullquote]

Exit mobile version