HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. (OTCMKTS:PRELF) gained 19% after announcing the signing of a binding letter agreement with its largest shareholder Genesis Mining Ltd. Pursuant. The company is to receive $22 million financing for the construction of a cryptocurrency mining data center in Sweden.
Cryptocurrency Mining Data Center
Construction of the mining data center should result in a 175% increase in the company’s cryptocurrency mining capacity. Investor confidence in Hive Blockchain Technologies continues to grow as seen by the stock performance in recent weeks.
The stock is already up by more than 800% over the past one month, as it continues to trade in a strong uptrend. Renewed investor interest follows the growth in popularity of cryptocurrency, bitcoin having already touched highs of $6000.
Construction of the Sweden data center underscores the company’s push for growth around cryptocurrencies.
“With the help of Genesis, Sweden represents the next stage of growth for HIVE as we continue to build our portfolio of mining facilities. HIVE Blockchain Technologies Ltd. (OTCMKTS:PRELF) is acquiring a facility in a politically stable country with access to excellent infrastructure and complements our existing facilities in Iceland,” said CEO Harry Pokrandt.
In addition to the construction of a cryptocurrency mining data center, Hive Blockchain Technologies has acquired additional mining equipment located in Reykjanes Iceland (second data center). Genesis is responsible for hosting, maintenance, and related services for the data center as part of a master services agreement signed.
The second data center was acquired for a consideration of C$5 million and the issuance of $2 million common shares of the company. HIVE Blockchain Technologies Ltd. (OTCMKTS:PRELF) cryptocurrency mining capacity currently stands at 70%.
Genesis Capital Investment
Separately, Genesis Mining Ltd has exercised an investor rights agreement to purchase 4.7 million shares of Hive at a price of C$1.50 share, for gross proceeds of C$7 million. The purchase builds on a $30 million deal financing, agreed last month.
Under the terms of the rights agreement, Genesis Mining is entitled to 30% ownership of the company – post offering. The purchase is to be completed as a non-brokered private placement subject to approval by the TSX. Net proceeds from the offering are to be used for general working capital purposes.
“We welcome the financial support of Genesis Mining, the leading cryptocurrency mining hashpower provider with over a million customers, in addition to the invaluable expertise they are already providing,” said CEO Pokrandt.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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