HIVE Blockchain Technologies Ltd
HIVE Blockchain Technologies Ltd (OTCMKTS:PRELF) shares traded higher as investors confidence in the stock continued to strengthen in the wake of bitcoin touching new record highs. The stock was up by 19.76% in Thursday’s trading session as bitcoin rose to $7,437.
PRELF Stock Performance
Thursday’s rally capped yet another impressive run as HIVE Blockchain Technologies Ltd (OTCMKTS:PRELF) continues to trade in an uptrend. Over the past month, the stock has gained more than 120% in market value as it continues to receive support from growing bitcoin popularity. For the full year, the stock is up by more than 200%.
Hive Blockchain Technologies impressive run does not come as a surprise. The company expects bumper returns from its bitcoin mining operations as long as the price for cryptocurrencies continues to rise. In a bid to take advantage of the growth in popularity of digital currencies, the company has announced plans to strengthen its cryptocurrency mining capacity.
Cryptocurrency Mining Capacity
Plans are already underway to construct a cryptocurrency mining data center in Sweden that will increase the company’s capacity by 175%. HIVE Blockchain Technologies Ltd (OTCMKTS:PRELF) has secured financing from Genesis Mining Ltd, which will result in the construction of the facility to the tune of $22 million. Pursuant to the agreement, the investor will also be responsible for hosting, maintenance, and related services for a monthly fee.
“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 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, the company has completed the acquisition of an additional cryptocurrency mining equipment in Iceland. The data center was acquired for a consideration of C$5 million and the issuance of 2 million shares to Genesis Mining Ltd.
$30 Million Private Placement
Separately, HIVE Blockchain Technologies Ltd (OTCMKTS:PRELF) has closed a previously announced private placement of 20 million common shares at a price of C$1.50 per share. The company expects gross proceeds of $30 million from the offering.
Net proceeds from the offering are to be used to strengthen cryptocurrency mining capacity through the acquisition of mining equipment and data center. Part of the funds is also to be used for general working capital purposes.
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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