HIVE Blockchain Acquires Bitcoin Mining Facility for $2.8M

HIVE Blockchain Technologies, a Canadian publicly-traded ether (ETH) mining firm, has announced on March 30 the acquisition of a dedicated cryptocurrency mining operation with access to 30 megawatts of low-cost green power.

The transaction was valued at CAD $4 million (USD $2.8 M). The facility, leased by Cryptologic Corp, is located in Lachute, Quebec.

The firm intends to expand its total available power capacity globally to approximately 50MW, whose mining activities in Europe are focused on the Ethereum network, while Bitcoin miners will be supported in Quebec’s facility.

Giving priority to the green power

According to Frank Holmes, interim executive chairman of HIVE:

“The acquisition provides us with 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 hopes to add flexibility for future expansion plans. The firm already has a presence in Sweden.

As detailed by the Canadian firm, the facility offers about $0.04 / kWh in electricity costs, and the electrical infrastructure expects to provide triple redundancy systems for power and internet connectivity, operational staff, and approximately 14,000 Bitmain S9 miners that are currently installed.

Speaking with Cointelegraph, Holmes highlighted some reasons behind expanding into Quebec:

“A blend of factors makes Quebec a very attractive location for us: geographical diversification, competitive green energy costs, the cost of skilled labor and VAT costs. The acquisition provides us direct control of our destiny, including significant capacity for expansion and flexibility for our future operations. And of course, the positive outlook for blockchain adoption is a reason for our expansion.”

HIVE’s interim executive chairman clarifies that the facility operatesentirely onrenewable hydroelectricity, thus maintaining 100% green energy. Also, he added that their GPU-based resources provide flexibility to identify and focus computing resources on existing and new cryptocurrencies as they become more profitable to mine.

Ether mining expansion in Sweden

The news comes after HIVE Blockchain Technologies announced on March 6, the two-phase expansion of its Ether mining operations by more than 20% at the company’s facility in Sweden.

In an interview with Cointelegraph, Holmes commented on the company’s intentions to improve the profitability of the Iceland facility, as they have done in Sweden.