- HIVE acquires Bitcoin mining farm worth over $42M for just $2.8M (CA$ 4M)
- This acquisition would double HIVE’s total capacity to 50 MW
- Combined hash power of over 173 PH/s
The purchase includes 15,000,000 common shares of HIVE at a price of CA$ 0.20 a share and CA$1,000,000 in cash. In return, HIVE will receive 100% of Cryptologic Corp’s shares, and thus, acquiring its facility.
Why Does This Matter?
This acquisition is significant for several reasons.
This is an important strategic acquisition for HIVE that diversifies our business significantly, and we are making it at an opportune time at an attractive valuation for our shareholders …
…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– Frank Holmes, Interim Executive Chairman of HIVE
Acquiring this facility offers numerous benefits to HIVE. Firstly, this acquisition will double HIVE’s global capacity to approximately 50MW. HIVE already has several mining farms in Sweden and Iceland, taking advantage of the temperature and low electricity prices.
In addition, HIVE is acquiring the facility at a massive discount comparative to the hardware. The 14,000 included S9 ASIC miners have a combined retail value of over $42M. This $42M does not even include the facility itself.
How much Bitcoin can it mine?
What’s more, is the facility’s total mining capacity. The farm already has over 14,000 Bitmain S9 ASIC miners. The combined hash power of the facility tops 173PH/s. This massive amount of power will mine a little over 3 Bitcoin a day, worth over $21,000.
The facility also sports a very low electricity price: $0.04/kWh. Without factoring cooling costs, the farm will still manage to make over $3,000 in profit a day at current prices and difficulty.
Future of Cryptocurrency Mining
As Hive acquires a Bitcoin mining farm for $2.8M many wonder about the future of mining cryptocurrency. The future of cryptocurrency mining remains uncertain and risky. With mining difficulty in an ever-increasing trend, the future of mining, for the most part, remains a hobby rather than a profitable venture.
Cryptocurrency mining has too many factors that can change with a moment’s notice, and thus, leaving miners with obsolete hardware. For many individual home miners, the electricity costs more than what their hardware will mine. The only exception to this is specialized mining facilities sporting ultra-low electricity costs. Even then, large scale mining ventures are incredibly risky with many companies going under in 2020 alone.
Many cryptocurrency hobbyists may find better profits in trading cryptocurrencies. However, cryptocurrency mining will not go extinct in the near future with Bitcoin’s current hash rate at 105 EH/s or 105,000 PH/s. This is equivalent to over 1.5 million Bitmain S17+ miners, each capable of mining at a speed of 67 TH/s.
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