|HIVE Presents Record November 2021 Production Figures & Provides Corporate Update|
|December 3, 2021|
HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (Nasdaq:HIVE) (FSE:HBF) (the “Company” or “HIVE”) is pleased to announce the production figures from the Company’s global Bitcoin and Ethereum mining operations for the month of November 2021, with a BTC HODL balance of 1,584 Bitcoin as of today.
November 2021 Production Figures
Following a record Q2 2022 earnings report (period end September 30, 2021), HIVE is pleased to announce its November 2021 production figures. The Company notes it currently has:
218 BTC Produced
$13.2M USD Bitcoin mining revenue
1.31 ExaHash of Bitcoin mining capacity
2,334 ETH Produced
$10.4M USD Ethereum mining revenue
4.36 TeraHash of Ethereum mining capacity
$23.6M USD Total Revenue
|HIVE Announces Investment in Titan, Leading Blockchain Software Company|
|December 1, 2021|
TITAN is a blockchain based decentralized financial center that provides optimal liquidity solutions for different digital asset category by adaptive…
Today Titan offers software which helps Bitcoin miners increase their efficiency and scalability at a flat, low cost. It also operates the Titan Mining Pool, which recently surpassed 3 Exahash of Bitcoin mining capacity.
Titan has also announced a disruptive decentralized hashpower routing protocol named Lumerin. The open source Lumerin Protocol is a peer-to-peer solution that enables the exchange of hashpower through smart contracts, making crypto mining hashpower tradable and liquid.
The Lumerin Protocol will allow companies and individuals to buy, sell, and deliver hashpower, achieving decentralization through free market dynamics. Furthermore, the Lumerin Protocol will make Bitcoin hashpower a tradable, liquid financial asset, unlocking mining profitability and providing greater access to capital and hedging strategies.
The investment in Titan has been structured as a share exchange where HIVE will issue to Titan securities consisting of shares and warrants having a value of USD $5 million at CAD $6/share, the same terms as the recently-announced private placement. Titan will issue to HIVE common shares in an amount representing 10% of the outstanding equity of Titan. The transaction is pending TSX Venture Exchange approval.
|HIVE Blockchain Announces Closing of $115,023,000 Bought-Deal Private Placement Financing|
|November 30, 2021|
“We are very pleased that this private placement included both institutions and broad retail distribution with over 100 new shareholders becoming part of our HIVE community,” comments Frank Holmes, HIVE’s Executive Chairman. “These funds will allow us to HODL our Bitcoin and Ether supply while expanding our production to 3 Exahash in the early part of 2022. Also important was BMO’s participation, making it the first major Canadian bank to participate in a crypto data center equity financing.”
HIVE Announces Record-Breaking Revenue
of $52.6 Million and Earnings for our
2nd Quarter Ended September 30, 2021
For the three-month period, revenue rose to $52.6 Million, up 41% compared with last quarter, and 305% since the same quarter last year. Net income reached $59.8 million, up 342% from last quarter, and 549% since the prior year.
|HIVE Blockchain Announces $110,020,000 Bought Deal Private Placement Financing|
November 9, 2021
HIVE Blockchain Announces $110,020,000
Bought Deal Private Placement Financing
to expand BTC production by an additional
One Exahash per second in the Summer 2022.
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated February 2, 2021 to its short form base shelf prospectus dated January 27, 2021.
Vancouver, Canada – HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (Nasdaq:HIVE) (FSE:HBF) (the “Company” or “HIVE”) is pleased to announce that it has entered into an agreement with Stifel GMP as lead underwriter and sole bookrunner to include a syndicate of underwriters (the “Underwriters”), whereby the Underwriters will purchase, on a bought-deal basis, 16,670,000 special warrants of the Company (the “Special Warrants”) at a price of $6.00 per Special Warrant for aggregate gross proceeds to the Company of $100,020,000 (the “Offering”). The completion of the Offering will be subject to receipt of all necessary regulatory and corporate approvals or consents.
The Company will grant the Underwriters an option to increase the size of the Offering by up to an additional 15% of the Special Warrants sold under the Offering, exercisable in whole or in part, at any time and from time to time up to 48 hours prior to the Closing Date (as hereinafter defined).
Each Special Warrant shall entitle the holder thereof to receive, subject to adjustment in certain circumstances and the Penalty Provision (as defined below), and without payment of additional consideration, one (1) unit of the Company (each a “Unit”) upon the exercise or deemed exercise of each Special Warrant. Each Unit shall consist of one (1) common share of the Company (a “Unit Share”) and one-half (0.5) of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one common share of the Company (a “Warrant Share”) at a price of $6.00 per Warrant Share for a period of 36 months following the closing of the Offering. The Special Warrants will be exercisable by the holders thereof at any time after the Closing Date for no additional consideration. All unexercised Special Warrants shall be deemed exercised on behalf of, and without any required action on the part of, the holders (including payment of additional consideration) on the earlier of:
the second business day following the date on which a final receipt is obtained from the British Columbia Securities Commission (the “BCSC”), as principal regulator on behalf of the securities regulatory authorities in each Province of Canada, except Québec, for a (final) short form prospectus qualifying the distribution of the Unit Shares and Warrants to be issued upon exercise of the Special Warrants (the “Qualification Date”); and
4:59 p.m. (Toronto time) on the date which is four months and a day following the Closing Date (the “Qualification Deadline”).
In the event the Qualification Date has not occurred on or before the date that is 45 days following the Closing Date (the “Penalty Date”), each outstanding Special Warrant shall thereafter entitle the holder to receive, upon the exercise or deemed exercise of each Special Warrant, for no additional consideration, 1.1 Units (the “Penalty Provision”).
The Company anticipates the net proceeds of the Offering will be used for a program of data centre development and miner / ASIC acquisition to increase hashrate by on one Exahash per second, working capital requirements and other general corporate purposes.
In consideration for their services, the Underwriters will receive a cash commission equal to 6% of the gross proceeds of the Offering.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. went public in 2017 as the first cryptocurrency mining company with a green energy and ESG strategy.
HIVE is a growth-oriented technology stock in the emergent blockchain industry. As a company whose shares trade on a major stock exchange, we are building a bridge between the digital currency and blockchain sector and traditional capital markets. HIVE owns state-of-the-art, green energy-powered data centre facilities in Canada, Sweden, and Iceland, where we source only green energy to mine on the cloud and HODL both Ethereum and Bitcoin. Since the beginning of 2021, HIVE has held in secure storage the majority of its ETH and BTC coin mining rewards. Our shares provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of cryptocurrencies such as ETH and BTC. Because HIVE also owns hard assets such as data centers and advanced multi-use servers, we believe our shares offer investors an attractive way to gain exposure to the cryptocurrency space.
We encourage you to visit HIVE’s YouTube channel here to learn more about HIVE.
For more information and to register to HIVE’s mailing list, please visit www.HIVEblockchain.com. Follow @HIVEblockchain on Twitter and subscribe to HIVE’s YouTube channel.
On Behalf of HIVE Blockchain Technologies Ltd.
For further information please contact:
Tel: (604) 664-1078
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Except for the statements of historical fact, this news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. “Forward-looking information” in this news release includes, but is not limited to, statements with respect to information about the Offering and the use of proceeds, potential dilution and application of the Penalty Provision; business goals and objectives of the Company; and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the volatility of the digital currency market; the Company’s ability to successfully mine digital currency; the Company may not be able to profitably liquidate its current digital currency inventory as required, or at all; a material decline in digital currency prices may have a significant negative impact on the Company’s operations; the volatility of digital currency prices; continued effects of the COVID-19 pandemic may have a material adverse effect on the Company’s performance as supply chains are disrupted and prevent the Company from carrying out its expansion plans or operating its assets; and other related risks as more fully set out in the registration statement of Company and other documents disclosed under the Company’s filings at www.sec.gov/EDGAR and www.sedar.com.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company’s ability to complete the Offering the timing thereof and related matters. The Company has also assumed that no significant events occur outside of the Company’s normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
11-09-2021 IIROC Trading Halt – HIVE
V.HIVE | 22 minutes ago
Why HIVE is Going Big on BTC
NASDAQ: HIVE | TSXV: HIVE
For most of our history, HIVE was primarily an Ethereum mining company. That choice has served the company well, as we’ve seen ETH’s price appreciate even faster than Bitcoin’s. We continue to increase ETH mining capacity, and think there’s still significant time left before Ethereum switches to a Proof Of Stake system (assuming it eventually happens).
But a little over 12 months ago, HIVE decided to go big on mining Bitcoin. We announced an agreement to acquire GPU One, a large Canadian miner, on November 23, 2020. This 6 acre, 50 megawatt site is now part of HIVE Atlantic, and will soon have 70 MW of capacity. With this purchase, HIVE integrated a campus of data centres dedicated to mining Bitcoin, and an experienced technical team. We’ve since updated equipment, adding over 7,500 new top-tier Bitcoin miners.
And as we explained in the first newsletter, we’re expanding the campus by building new data centres, which should be completed by November 22, 2021. We have more than 16,000 new top-tier BTC miners on order which are arriving in tranches. These orders were placed going back to 2020, up to the 6,500 miner order we announced on 10/21/2021.
Here’s why we’re doing all of this…
Bitcoin: An Emerging Alternative Financial Network
Many economists and professional investors still dismiss Bitcoin as a purely speculative asset. Jamie Dimon called it a “terrible store of value” in January of 2014, and both Warren Buffett and Charlie Munger have expressed similar sentiment.
These are brilliant people, but they may be missing the bigger picture here. Bitcoin is a scarce financial asset in a world awash in money printing. A totally new form of money. An electronically transferable form of value that can be fractionalized nearly infinitely. It’s highly liquid and can be traded for cash worldwide.
Bitcoin has the potential to turn into the internet’s “native currency”, as Twitter’s Jack Dorsey says (and Twitter just added the ability to tip BTC to other users).
By mining Bitcoin, HIVE helps secure the network and process transactions. We are rewarded for our efforts with BTC. Since we started mining BTC for ourselves in April of 2020, we’ve quickly surpassed 1,300 coins in storage. In September we mined 221 BTC, worth about $13.2M at $60k per BTC. And we are ramping up production and capacity.
Institutional BTC Buyers
Bill Miller is a billionaire and legendary value investor. Miller was an early Bitcoin adopter who first got in around $200, and recently added at $30,000.
Mr. Miller recently made a profound statement about Bitcoin. Here’s what he said:
“Bitcoin is a lot less risky at $43,000 than it was at $300. It’s now established, huge amounts of venture-capital money have gone into it, and all the big banks are getting involved…”
How is it less risky at a higher price? Because like Bill said, it’s more proven. And now that Bitcoin is over a $1 trillion market cap, it’s finally big enough that major institutions can actually buy $1 billion worth without disrupting the price too much. This is an underappreciated fact about BTC. It’s just now getting large enough that big firms can purchase without spiking the price.
For years, Bitcoin was simply too tiny for the big firms to even consider an investment. They would have 10x’d the price instantly. Now they can finally allocate capital in both the currency itself, and the companies building the infrastructure, such as Coinbase, and HIVE.
To see how far BTC liquidity has come, check out this interaction on Twitter between Michael Saylor and Elon Musk. Saylor is the CEO of MicroStrategy, the first public company to go big into Bitcoin. Here he is in December 2020 pitching Elon Musk on adding BTC to Tesla’s balance sheet:
Elon responds “Are such large transactions even possible?” The answer was clearly yes, as Tesla announced the purchase of $1.5 billion in BTC in February 2021. And since then, liquidity has gotten even better.
Firms that got into crypto early are already seeing serious gains on their investments. It’s possible this will drive more professional investors to FOMO (fear of missing out) in. And if inflation remains problematic, investors will likely continue to invest more in alternative assets like BTC.
Big Firm FOMO
Institutional investors are finally capitulating into BTC. Their clients have been asking for it for years, and they missed a huge opportunity. Here’s a sampling of some recent firms who announced they’re buying BTC, or offering it to their clients:
These are some of the largest institutional investors in the world. If crypto continues to do well, it could fuel a cycle of institutional FOMO. This could potentially push prices far higher than they are today.
And if these institutions largely hold their investments long-term, eventually it could reduce BTC’s high volatility. However, that’s likely a way off, if it happens. For now, we expect volatility to remain elevated.
Lightning Network Shows Power of BTC Ecosystem
One of Bitcoin’s strongest attributes is its community of a hundred million+ around the world. Hundreds of incredibly talented engineers, mathematicians, and cryptographers are constantly working to improve the network. Improvements are cautiously rolled out, and long-term thinking is paramount.
The Lightning Network is a great example of how powerful the Bitcoin community can be. Lightning allows Bitcoin transactions to be sent nearly instantaneously, for a few cents.
These transactions occur off the Bitcoin blockchain, and are settled on-chain in large batches, so they don’t clog up the network. The Lightning network can essentially scale infinitely with its unique peer-to-peer design
Lightning Labs launched the Lightning Network in February 2018, after more than a year of beta testing, and many years of planning. This second-layer network has grown steadily in the years since, and has recently experienced a “hockey stick” spike in adoption. Here’s a chart showing Lightning capacity in # of Bitcoin, from launch until October 19, 2021 (via BitcoinVisuals.com).
There are now more than 3,000 BTC on the Lightning Network. Adoption is growing in places like El Salvador, where Bitcoin was recently made legal tender (currency). In places like El Salvador, using Bitcoin for international transfers is far cheaper and faster than using Western Union. This is fueling a boom in Bitcoin’s use for remittance (workers who send money home overseas, typically).
Companies like Strike are making it simple to use the Lightning Network to send BTC anywhere in the world, almost instantly, for a few cents. And Lightning is just one example of the amazing infrastructure being built in the ecosystem. There are also huge strides being made in bringing institutional investors in. Fidelity Digital Assets, Bakkt (NYSE), Grayscale, Coinbase, NYDIG, and many others are offering institutional-grade service and security.
Top venture capital firms like Andreessen Horowitz are investing billions of dollars in the next generation of crypto infrastructure companies, and much of that is going to companies that will further adoption of BTC and other digital assets.
And most importantly of all, crypto adoption among people is exploding. According to a recent survey of 2,000 U.S. consumers by Bakkt (NYSE’s Bitcoin division), 48% of respondents had purchased cryptocurrency. The amounts they report owning are small, with around 90% less than $1,000. But the important takeaway here is that crypto is finally going mainstream.
The next 5-10 years should be a very exciting time for the Bitcoin ecosystem.
Bitcoin is increasingly used by investors to protect against inflation. In a world where money printing is ubiquitous, there will only ever be 21 million Bitcoin (fortunately, each can be split into 100 million units).
In places like Venezuela, where annual inflation is around 2,000% annually, Bitcoin can literally be a life saver. I suggest reading “Bitcoin Has Saved My Family” by Venezuelan Carlos Hernandez in the NY Times. The article was published in 2019 when BTC was trading for around $3,810. Here’s an excerpt:
“I keep all of my money in Bitcoin. Keeping it in bolívars would be financial suicide: The last time I checked,the rate of daily inflation was around 3.5 percent. That’s daily inflation;the annual inflation rate for 2018 was almost 1.7 million percent. I don’t have a bank account abroad, and with Venezuela’s currency controls, there’s no easy way for me to use a conventional foreign currency like American dollars.”
Inflation is picking up around the world. It appears to be exacerbated by supply chain problems, but many suspect that quantitative easing (QE) and low interest rates are also contributing. If so, inflation could be stickier than most economists were expecting.
Billionaire investor Paul Tudor Jones says Bitcoin is his preferred inflation hedge. He recently explained his views on CNBC:
“It would be my preferred [inflation hedge] over gold at the moment,” Jones said in a “Squawk Box” interview. “Clearly, there’s a place for crypto. Clearly, it’s winning the race against gold at the moment.”
Even J.P. Morgan analysts recently stated that they “believe the perception of Bitcoin as a better inflation hedge than gold is the main reason for the current upswing”.
When inflation first popped up, we were told it was only “transitory”. Now it appears it may be a bit stickier than expected. If it continues for an extended period, Bitcoin adoption could accelerate.
2M+ BTC Left To Be Mined
Today, approximately 18.85 million BTC have been mined. Eventually there will be 21 million. That means there are 2.15 million Bitcoins left to be mined, worth $129 billion at $60,000 per BTC.
Of course, some of those BTC won’t be mined for 100 years. But the next 7 years will be one of the last chances to mine a significant number of Bitcoins. The current reward is 6.25 BTC every 10 minutes. When the next halving happens in Spring of 2024, the reward will be 3.125. In 2028 the reward will drop again to 1.5625 per block (every 10 min). That’s a huge drop in new supply.
So this next 7 years is a crucial time for mining BTC. We also believe Bitcoin has significant upside potential from here. For example, all the BTC in the world today is worth around $1.1 trillion. All the gold in the world is worth $8 trillion. It’s possible that BTC surpasses gold in the next few years.
It’s a huge opportunity, and we aim to mine as many of those BTC as possible. HIVE has the land, capital, talent, and leadership needed to become a leading BTC miner (read more on why we’re building our own data centres here).
And importantly, we’re doing it all in a sustainable way. Our miners are powered by clean hydro and geothermal power. We’re building our data centres in places with cheap, often excess power, and stable governments. We’ve got an experienced capital markets team guiding our capex strategy.
HIVE plans to continue to HODL its BTC going forward. We’ve already built up a stash of over 1,300, and we’re on track to increase mining capacity by 200% in the next 6 months.
We know prices will be volatile. But we’re comfortable taking that risk, considering the potential long-term rewards.
Thanks for reading!
Editor, The HIVE Newsletter