Genesis and Hive working together 😎 Vancouver, Canada – HIVE Blockchain Technologies Ltd. (TSX.V:HIVE) (OTCQX:HVBTF) (FSE: HBF) (the “Company” or “HIVE”) is pleased to announce that it has entered into new agreements, effective June 1, 2020, for hosting and management of its GPU-based high performance computing equipment in Iceland which are anticipated to significantly improve the profitability profile of operations in the country.
The agreements are anticipated to result in an approximately 50% reduction in monthly facilities and operations costs vs HIVE’s prior service provider agreement, an upgrade in colocation facilities, and improved efficiency and output of HIVE’s GPU operations.
“Our assumption of direct control of our operations in Iceland, and these new hosting and management agreements, are expected to significantly lower our cost to mine Ethereum or other digital currencies, and improve mining performance from our GPUs, thereby increasing our gross mining margins in Iceland,” explained Frank Holmes, Interim Executive Chairman of HIVE. “Further, we now have full control of our operations and destiny globally. This is an important step in our approximately 18-month process to increase transparency, accountability and profitability across our mining operations. We wish to thank Genesis Mining for their assistance in our transition processes in Iceland and in Sweden last fall, and we look forward to providing value to them as a HIVE shareholder along with our other shareholders.”
Under the first agreement, a subsidiary of HIVE has engaged Advania Data Centers ehf under an initial two-year agreement for hosting and related colocation services for its approximately 4,000 GPU-based mining rigs, including hosting, power usage, shelving, datacenter operations and maintenance, and security. The annual service, power and Internet access availability goal is 99.8%. Initial power provided will be for approximately 3.45 megawatts, though HIVE has the option to expand its operations by approximately 40%. The combination of competitively priced, 100% sustainable green energy, an optimized climate for data centers and Advania’s innovative data center design enables direct air cooling to mitigate power consumption for cooling.
Under the second agreement, HIVE has expanded its previously announced relationship with Blockbase Group DWC-LLC (“Blockbase”) to provide software services for and optimize effectiveness of its GPUs in Iceland. Blockbase is already providing similar services for HIVE’s flagship GPU-based high performance computing facility in Sweden.
The timing for the transition of software management of HIVE’s GPU-based miners from Genesis to Blockbase will depend on travel and related restrictions related to COVID-19.