HIVE buys 3,019 miners from DCG subsidiary

The mining company HIVE Blockchain, listed on the Toronto Stock Exchange and Nasdaq, acquired 3019 MicroBT WhatsMiner M30S miners from Digital Currency Group’s subsidiary Foundry Digital LLC.

The aggregate hash rate of the new ASIC devices is estimated at 264 PH/s. The equipment has already been deployed at HIVE’s facilities in Lashut, Quebec, and Grand Falls, but its integration will take place after the closing of the deal.

The move will allow the Canadian company to increase its hash rate by 46%. Given current difficulty and the price of Bitcoin, HIVE will generate an additional $80,000 in daily revenue, according to the press release.

As part of the agreement, Foundry will receive cash and 1.5 million warrants, each of which entitles the holder to purchase one ordinary share of HIVE at CAD 3.11 (~$2.49) per share within two years. The parties did not disclose other financial terms of the deal.

On MicroBT’s site it states that the price of the new WhatsMiner M30S devices starts at 73,445 yuan (~$11,300).

The companies also agreed on a partnership — HIVE will provide its computing power to the Foundry USA Pool, a mining pool that includes Blockcap, Hut8, Bitfarms and Foundry itself.

“Joining the North American pool helps us advance our goal of increasing transparency and accountability to our partners. Capacity is migrating from east to west, and we are pleased to participate,” said Frank Holmes, executive chairman of the board of HIVE.

The company noted that the new devices will allow it to increase its Bitcoin reserves on its balance sheet. Currently, HIVE’s reserves hold 605 BTC. By the end of August, the organization plans to ramp its hash rate to 1 EH/s.

In June, HIVE was listed on Nasdaq under the ticker HVBT. As of writing, the stock price stood at $2.59 — up 3.5% in premarket trading.

In May, HIVE sold its Norwegian subsidiary Kolos Norway AS to the municipality of Narvik due to the removal of electricity subsidies.

In January, the company acquired 6,400 AvalonMiner 1246 miners from the Chinese manufacturer Canaan Creative, with delivery scheduled for the end of 2021.

In November 2020, HIVE doubled its mining capacity through the purchase of 1,240 WhatsMiner M30S devices.

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