Ether (ETH) Mining Giant Hive Acquires Bitcoin Mining Facility to Double Operation

Hive Blockchain, a publicly listed cryptocurrency miner, is set to double its mining capacity through the acquisition of a 30 megawatts cryptocurrency mining facility from Cryptologic Corp., which is located at a leased facility in Lachute, Quebec. 

According to a Monday press release shared with Coinfomania, the facility was acquired at approximately C$4.0 million (US$2,825,380 ). Following the agreement reached with Cryptologic, Hive will satisfy the purchase by offering C$1,000,000 (US$706,345) in cash and issuing 15,000,000 common shares to Cryptologic at C$0.20 per share.

The facility reportedly features US$0.04/kWh electricity costs, triple redundancy systems for power and internet connectivity, 30 MW of HVAC, and electrical infrastructure for cryptocurrency mining, 14,000 installed Bitmain S9 miners, which provides roughly 173 Petahashes of SHA 256 Bitcoin mining computing power.

Hive noted that the acquisition would more than double its global power capacity to about 50 MW, which will rank it among the biggest publicly-listed cryptocurrency miners. Also, this will result in diversification of the blockchain network as Hive’s European GPU-mining operations currently mine on the Ethereum network. But, the facility in Quebec supports miners on the Bitcoin network.

The acquisition is quite a milestone for the company. According to Frank Holmes, Interim Executive Chairman of Hive, it will provide “an advanced, operating Bitcoin mining facility ready to transition to next-generation mining hardware with access to some of the lowest-cost electricity on the planet. The cost of US$95,000 per MW is less than half the industry standard build cost per MW.”

Hive also plans to invest in next-generation miners, as well as to operate as host for third-party miners in the future, in order to maximize utilization of the Facility’s power capacity. Per the release, the mining giant also anticipates extending the term of the Facility lease for an additional five years.

Recently, Coinfomania reported Hive’s plans to increase its Ethereum mining operation by 20% despite Ethereum’s PoS Plans.

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