In a recent press release, Hive Blockchain (HIVE) announces its ambitious plans to double its computing power or hashrate to an impressive 6 exahash/second (EH/s). The bold move comes on the heels of the crypto winter, which saw many miners grapple with a challenging market, some even filing for bankruptcy. Now, with budding optimism in the industry, all eyes are turning to growth and operational targets.
Hive’s plan is to utilize an at-the-market (ATM) sale and raise up to $100 million by offering common shares. The Canadian investment firms, Canaccord Genuity and Stifel, will act as the agents handling the offering. With each exahash of bitcoin mining computing power costing $30 million, the sale would potentially fund a growth of up to 3 EH/s.
While doubling the hashrate makes a powerful statement, it also warrants careful scrutiny. Hive has confirmed that by the end of Q2, it will increase the hashrate from the current 3 EH/s to 4 EH/s, thanks to machines it has already purchased. However, further information on the timeline is not provided by the company.
Nonetheless, the company has acquired 1.26 EH/s of new generation machines, including 0.71 EH/s of Bitmain Antminer models in addition to the rest being made up of Hive’s custom rigs equipped with Intel semiconductors. However, it is vital to note that Intel discontinued its mining chip series in April.
Hive emphasizes the power efficiency and purchase price of its mining rig fleet, aiming to “optimize near-term repayment of our investments from cashflow operating these machines,” according to the press release. The company mines both bitcoin and other crypto tokens using graphics-processing units that were repurposed from ether mining after the Merge. As of the end of April, Hive’s hashrate included 3.14 EH/s of bitcoin computing power and 0.16 EH/s of GPU mining.
What remains uncertain is whether Hive Blockchain’s decision to double its computing power will prove to be a successful move for the company, or if it will face hurdles due to equipment and market-related concerns. It is evident that the industry is shifting towards growth and expansion, but the execution and timeline are factors that could influence the outcome of Hive’s plans. As the space continues to evolve, we can anticipate more news relating to cryptocurrency mining and how companies adjust to industry changes in the coming months.
Source: Coindesk
