HIVE Blockchain Technologies Inc (TSXV: HIVE) has entered into a definitive agreement to acquire a cryptocurrency mining operation from Cryptologic Corp (CSE: CRY).
HIVE has signed an agreement to acquire Cryptologic’s cryptocurrency mining operation located in Lachute, Quebec. This leased facility has access to 30 megawatts of HVAC and green power, electricity costs of US$0.04/kWh, and 14,000 Bitman S9 miners. The facility is thus able to capitalize on the low electricity prices, and produce positive gross margins given the current market conditions.
As per the agreement, HIVE will issue 15 million common shares to Cryptologic at a price of $0.20 CDN per share, in addition to a cash payment of $1 million CDN. This will put Cryptologic in a position where it will own approximately 4% of HIVE’s common shares. The transaction has the approval of the Board of Directors from both HIVE and Cryptologic, and is now only subject to closing conditions which include the receipt of regulatory approvals. The closing of the transaction is set to occur either on April 3, 2020, or two business days after conditional approval from the TSX Venture Exchange is received- whichever occurs first.
Going forward, and given that HIVE successfully acquires Cryptologic’s Quebec cyrptocurrency mining operation, HIVE plans to allow third-party miners to utilize the facility’s power capacity, in addition to potentially increasing the leasing on the facility to an additional 5 years after the closing of the transaction.
Cryptologic Corp is a cryptocurrency mining company with headquarters in Toronto. The company is currently focusing on the exploration of opportunities unrelated to cryptocurrency mining.
HIVE is headquartered in Vancouver Canada, and is a company focused on the digital currency market, through means of creating a link between cryptocurrencies and the traditional capital market.
HIVE Blockchain Technologies Inc is currently trading at $0.18 on the TSX-Venture.
Information for this briefing was found via Sedar and HIVE Blockchain Technologies Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
