Hive Blockchain Aims to Double Hashrate; Announces $100M Share Sale for Expansion
In its recent announcement, Hive Blockchain (HIVE) has unveiled its ambitious plan to double its hashrate, to an impressive 6 exahash per second (EH/s). This significant increase is part of the company's strategy to bolster its position in the booming crypto mining industry, Сoindesk reports.
The funding for this initiative is expected to come from an at-the-market (ATM) share sale, although Hive has not yet disclosed a definitive timeline for achieving this target. However, the company has indicated that it anticipates increasing its hashrate from the current 3 EH/s to approximately 4 EH/s by the end of Q2, leveraging machines that it has already purchased.
Hive Blockchain intends to raise up to $100 million, with Canaccord Genuity and Stifel, two Canadian investment firms, serving as agents. Based on an estimated cost of $30 million per exahash of Bitcoin mining computing power, the share sale could potentially fund up to 3 EH/s of the company's growth.
In addition to the share sale, Hive has also invested in new mining equipment, adding 1.26 EH/s of new-generation machines to its inventory. This includes 0.71 EH/s from Bitmain Antminer models, and the remainder from Hive's custom rigs that utilize Intel semiconductors. Intel, however, announced the discontinuation of this mining chip series last month.
Hive highlighted the power efficiency and competitive purchase price of its mining rig fleet in the press release, noting that these factors should help optimize the near-term repayment of investments from cash flow generated by operating these machines.
Notably, Hive's operations include mining both Bitcoin and other cryptocurrencies using graphics-processing units repurposed from Ether (ETH) mining after the Merge. As of the end of April, the firm's hashrate comprised 3.14 EH/s of Bitcoin computing power and 0.16 EH/s of GPU mining.