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HIVE completes $4 million acquisition of mining firm

Oliver Knight
·2 min read

HIVE Blockchain Technologies has acquired a cryptocurrency mining operation with access to 30 megawatts (“MW”) of low cost green power at a leased facility located in Lachute, Quebec.

According to an official press release shared with Coin Rivet, the cost of acquiring mining firm Cryptologic stands at C$4,000,000 , with C$1,000,000 of that being in cash.

HIVE will also invest C$3,000,000 in new cryptocurrency mining equipment for the facility. Cryptologic now also own 4% of HIVE’s basic common shares.

“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 labour and taxes”.

“The acquisition provides us direct control of our destiny, including significant capacity for expansion and flexibility for our future operations. To that end, we have exercised an option to extend the term of the Facility lease to November 2025, and we plan to invest in next generation SHA-256 miners to increase the operating efficiency of the Facility and prepare it for the upcoming halving of Bitcoin rewards. Additionally, we are currently investigating the potential to host third-party miners to maximise utilisation of the Facility’s power capacity.”

Holmes went on to heap praise on Cryptologic’s COO and VP Finance for facilitating the deal during difficult times as a result of the Coronavirus pandemic.

He continued:”We also want to extend our appreciation to the Board of Cryptologic, who have expressed confidence in the vision and direction of HIVE by becoming a significant shareholder. Additionally, we also appreciate the cooperation of Cryptologic’s Chief Operating Officer, Paul Leggett and VP Finance, Joshua Lebovic, who have helped facilitate a smooth transition during the challenging period that the world is experiencing related to COVID-19.”

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