With the addition of this new data centre, the cryptocurrency mining capacity of HIVE Blockchain Technologies Ltd. (CVE:HIVE) will grow by 70%
SmallCapPower | September 22, 2017: HIVE Blockchain Technologies Ltd. (TSXV: HIVE) Thursday announced that it has entered into an agreement with a syndicate of underwriters led by GMP Securities, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 20 million common shares of the Company at a price of $1.50 per share, for aggregate gross proceeds of $30 million.
The net proceeds of the offering are expected to be used for the purchase of the second cryptocurrency mining data centre and general working capital purposes. HIVE had recently finished the acquisition of the first cryptocurrency mining data centre from Genesis Mining Ltd. on September 15, 2017. The offering is expected to close on or about October 11, 2017.
With the addition of this new data centre, HIVE’s mining capacity will grow by 70%. The deal will be executed through a mix of cash and stock, with a cash payment of $5 million along with two million common shares, as well as a revision of the monthly fees pursuant to the MSA to support the data centre. Genesis has the option to subscribe for additional common shares of the Company in the Offering to maintain its 30% ownership in HIVE. Genesis is the world’s largest cryptocurrency mining firm.
On Tuesday, U.S. Global Investors, Inc. revealed that it has exposure to 17 million shares of HIVE Blockchain through strategic investments.
Watch: Blockchain Technology is a Space I Love, Says Frank Holmes
HIVE started trading on the TSX Venture exchange on September 18, 2017, which followed from the completion of a $16.5 million equity financing, as announced on September 7, 2017. In tandem with its live share trading, HIVE has also commenced with its mining operations. Since September 15, 2017, the group has been undergoing an aggressive mining initiative to accumulate cryptocurrency.
Shares of HIVE Blockchain have soared more than 140%, to its current price of $1.80, since it began trading on Monday.
Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in the company mentioned above.
The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. To read more of this Disclaimer please click on the button below:
