This press release constitutes a “designated press release” for the purposes of the Company’s prospectus supplement dated February 2, 2021 to its amended and restated short form base shelf prospectus dated January 4, 2022.
Vancouver, British Columbia–(Newsfile Corp. – March 7, 2022) – HIVE Blockchain Technologies Ltd. (TSXV: HIVE) (Nasdaq: HIVE) (FSE: HBF) (the “Company” or “HIVE”) is pleased to make two major announcements today.
We are announcing a supply agreement with Intel Corporation (Nasdaq: INTC) (“Intel”) to purchase new high-performance ASIC chips that will be integrated into state-of-the-art mining equipment that will be custom-built for HIVE.
We are also announcing that HIVE has entered into a letter of intent with Compute North LLC (“Compute North”) to host 100 megawatts (“MW”) of mining capacity at one of their new renewable energy data centers in Texas. . This facility would be our first mining operation in the United States.
Intel Supply Agreement
Frank Holmes, Executive Chairman, said he was delighted to see HIVE’s management team working together to strategically position the company to expand into the United States with two significant agreements. First, HIVE has entered into a supply agreement with Intel, one of the world’s largest semiconductor manufacturers, for its upcoming blockchain accelerator.
The Company has also entered into a manufacturing agreement with an ODM (Original Design Manufacturer) who has expertise in the manufacture of electronic products. The ODM will integrate Intel’s blockchain accelerators into an air-cooled Bitcoin mining system. The HIVE engineering team will leverage its expertise in hardware and software implementation and work closely with Intel and partner ODM on system integration. These miners are expected to be delivered over a one-year period commencing in the second half of calendar year 2022, the effect of which, if all installed, would be an expected increase of up to 95% in our hashrate of global Bitcoin mining of 1.9 Exahash per second.
Aydin Kilic, President and COO of HIVE, said, “After months of careful planning, we are very pleased to take this step with a global technology leader like Intel. HIVE is committed to implementing these next-generation blockchain accelerators in its green energy infrastructure. Mr. Kilic continued, “This Intel supply agreement coupled with the ODM manufacturing agreement creates a path from chip production to an ASIC miner that sets us apart from our competitors.”
Mr. Kilic noted that “Intel’s energy-efficient, high-performance blockchain accelerator is expected to reduce our power consumption compared to current ASIC miners in the market. HIVE will participate in the system development process, from design verification through prototype stages, through factory engineering and test schematics to arrive at a production model; we are well positioned and excited to undertake the process ahead.
HIVE’s vision is to be a technology leader in the field of crypto mining, pushing the boundaries of research and development initiatives, coupled with hashrate analytics, to optimize the efficiency of our operations and maximize the return on invested capital.
Frank Holmes, Executive Chairman of HIVE, added, “We are delighted to be working with Intel, a North American-based semiconductor manufacturer. This supply agreement represents another important milestone in the Company’s journey. Over the past year, HIVE has strategically assessed its path forward for market growth and we are very excited to expand our Bitcoin mining program with Intel solutions. Intel’s commitment to challenging the status quo and its commitment to energy-efficient products aligns very well with our commitment to ESG and clean energy.
100 MW of renewable energy in Texas
HIVE is also pleased to announce that it has entered into a Non-Binding Letter of Intent (“LOI”) with Compute North. Compute North, the industry leader in large-scale sustainable IT infrastructure, is rapidly expanding its footprint with the development of many new facilities in the United States. Led by a leadership team with extensive experience in technology, finance and energy, Kyle Wenzel, CCO of Compute North, said, “Our team is proud to be working to accelerate the energy transition and evolve the data center market to create an efficient platform for computing. Needs.” Having proven itself as one of the largest crypto mining infrastructure developers in North America, HIVE is very excited to take this step forward with Compute North.
Frank Holmes said, “Compute North has done an exemplary job of putting the United States on the world stage as a reliable and scalable energy market for crypto miners. Additionally, their team shares the same commitment to using renewable energy that HIVE has adhered to since listing as the world’s first publicly traded crypto-miner.
As a result, the company is planning a 100 MW deployment at one of Compute North’s renewable energy campuses in Texas. Further details will be announced. The completion of the transactions contemplated by the letter of intent is subject to obtaining all regulatory approvals, including the approval of the TSX Venture Exchange.
The Letter of Intent constitutes a “related party transaction”, as that term is defined in National Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”), as Dave Perrill is a director and officer of ComputeNorth. and administrator of HIVE. HIVE relies on exemptions from formal valuation and minority shareholder approval requirements under NI 61-101 on the basis that the letter of intent does not exceed 25% of fair market value of market capitalization of the society.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. went public in 2017 as the first cryptocurrency mining company with a green energy and ESG strategy.
HIVE is a technology stock focused on growth in the emerging blockchain industry. As a company whose shares are traded on a major exchange, we are building a bridge between the digital currency and blockchain industry and traditional capital markets. HIVE has state-of-the-art data center facilities powered by green energy in Canada, Sweden and Iceland, where we source only green energy to mine on cloud and HODL both Ethereum and Bitcoin. Since the start of 2021, HIVE has kept the majority of its ETH and BTC coin mining rewards in secure storage. Our stocks offer investors exposure to the operating margins of digital currency mining, as well as a portfolio of cryptocurrencies such as ETH and BTC. Since HIVE also owns durable assets such as data centers and advanced multi-purpose servers, we believe our stocks offer investors an attractive way to gain exposure to the cryptocurrency space.
We encourage you to visit the HIVE YouTube channel here to learn more about HIVE.
For more information and to sign up for the HIVE mailing list, please visit www.HIVEblockchain.com. Follow @HIVEblockchain on Twitter and subscribe to the HIVE YouTube channel.
On behalf of HIVE Blockchain Technologies Ltd.
For more information, please contact:
Tel: (604) 664-1078
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Except for statements of historical fact, this press release contains “forward-looking information” within the meaning of applicable Canadian securities laws that is based on expectations, estimates and projections as of the date of this press release. . The “forward-looking information” contained in this press release includes, but is not limited to, business goals and objectives of the company; and other forward-looking information regarding the intentions, plans and future actions of the parties to the transactions described herein and the terms thereof.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, volatility in the digital currency market; the Company’s ability to successfully mine digital currency; the Company may not be able to profitably liquidate its current digital currency inventory as required, or at all; a significant decline in digital currency prices could have a material adverse impact on the Company’s operations; digital currency price volatility; the continued effects of the COVID-19 pandemic could have a material adverse effect on the Company’s performance as supply chains are disrupted and prevent the Company from achieving its expansion plans or operating its assets; the Company may not be able to fulfill its responsibilities under Intel’s supply agreement or OEM manufacturing agreement; the Company may not receive the necessary regulatory or other approvals under the letter of intent; the Company may not be able to meet its requirements under the letter of intent; and other related risks, as more fully set forth in the Company’s registration statement and other documents disclosed in the Company’s filings at www.sec.gov/EDGAR and www.sedar.com.
The forward-looking information contained in this press release reflects the Company’s current expectations, assumptions and/or beliefs based on information currently available to the Company. In connection with the forward-looking information contained in this press release, the Company has made assumptions about the Company’s future objectives, goals or plans, the timing thereof and related matters. The Company has also assumed that no material events occur outside of the normal course of business for the Company. Although the Company believes that the assumptions inherent in forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and, accordingly, undue reliance should not be placed on such information due to the inherent uncertainty of such information. -this.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/115795