Shares of HIVE Blockchain Technologies Ltd. (CVE:HIVE) fell 33% over a three-week period the last time a big block of stock became free trading
SmallCapPower | December 8, 2017: HIVE Blockchain Technologies Ltd. (TSXV:HIVE) stock could face significant selling pressure beginning on Monday, December 11, 2017. About 37.8 million additional shares will be released from a hold period following a September 7 private placement done at $0.30 per share. The Toronto Stock Exchange required a lockup for participants in a private placement, preventing them from selling their shares on the open market for a period of four months following the closing date of the financing.
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HIVE Blockchain raised a total of C$16.5 million on September 7, 2017, which was used for the acquisition of the first Data Centre from Genesis.
On November 8, 2017, HIVE Blockchain released 24,636,705 common shares from a voluntary pooling agreement. Its stock price fell about 33% from November 7 to November 24, 2017.
HIVE Blockchain recently released its results for the second quarter ended September 30, 2017. It was an eventful quarter, with HIVE forming a strategic partnership with Genesis Mining Ltd., the world’s largest digital currency mining hashpower provider. In conjunction, HIVE acquired and commenced operations at its initial 2.05 megawatt digital currency mining facility in Iceland. The Company has generated revenues of $170,819 from mining of digital currencies over 12 full days of mining operations at the first Iceland facility and a healthy mining margin of $112,959 (66%).
HIVE Blockchain raised C$71.5 million in the quarter, acquired a second operating facility in Iceland and began a major expansion into Sweden. The added 1.75 MW Icelandic facility, together with both phases in Sweden (6.8 MW each), is expected to increase the Company’s overall power consumption dedicated to digital currency mining by over eight times, for a total of 17.4 MW. Construction of HIVE’s Sweden facility is underway, with assembly, configuration and testing on track for rollout of Phase 1 in January 2018 and Phase 2 in March 2018. The Sweden facility will produce hash power with the newest generation of hardware and the latest developments in data centre architecture. With this significantly expanded capacity, along with recent Ethereum network improvements, the Company anticipates a strong increase in revenue for Q3 and into 2018.
As of September 30, 2017, HIVE Blockchain had approximately $3.5 million in cash on hand and no debt.
Since its IPO, HIVE shares have surged over 230% given the increased investor interest in the cryptocurrency space. HIVE Blockchain currently trades at Price to Book ratio of 63.80x.
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in the company mentioned above.
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