HIVE Blockchain Technologies Ltd. (CVE:HIVE) now has a market cap north of C$800 million following the construction of its third cryptocurrency mining data centre in Sweden
SmallCapPower | October 24, 2017: HIVE Blockchain Technologies Ltd. (TSXV:HIVE) shares surged 19% to $3.58 on Monday after the Company announced the construction of its third cryptocurrency mining data centre in Sweden. The addition of this new data centre is expected to increase the Company’s cryptocurrency mining capacity, or hashpower, by ~175%, and should be completed by December 2017. HIVE Blockchain had recently acquired its second data centre on October 11, 2017.
This new data centre will be constructed by Genesis for consideration of an estimated US$22 million. Pursuant to a master services agreement between HIVE Blockchain and Genesis, Genesis will be responsible for hosting, maintenance and related services for the Sweden Data Centre for a monthly fee.
HIVE Blockchain is one of the early entrants to the rapidly-evolving blockchain technologies industry and is the only publicly-listed cryptocurrency miner. HIVE has partnership with, and is backed by, Genesis Mining, one of the world’s leading cryptocurrency mining hash rate providers that owns 30% of the Company.
On September 15, 2017, HIVE Blockchain completed its first acquisition of a state-of-the-art GPU-based blockchain data centre in Reykjanes, Iceland. Post the acquisition, HIVE is focused on establishing a market presence and scaling its mining business to multiple cryptocurrencies. An influential strategic investor in HIVE Blockchain is U.S. Global Investors (NASDAQ:GROW), which announced recently the purchase of 17 million shares of HIVE.
Since its listing on September 18, 2017, HIVE’s stock price has tripled to $3.58 for a market capitalization of $839 million, which is high given lack of revenues and profits currently. However the addition of three data centres within a span of one month will drive revenues in the coming quarters, and its stock price could well make new highs as investors who want to have exposure to this sunrise industry enter this well-capitalized and well-backed technology company.
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