HIVE Blockchain Technologies Boosts Mining Capacity Stock Surge Continues

HIVE Blockchain Technologies Ltd. (CVE:HIVE) now has a market cap north of C$800 million following the construction of its third cryptocurrency mining data centre in Sweden

SmallCapPower | October 24, 2017:HIVE Blockchain Technologies Ltd. (TSXV:HIVE) shares surged 19% to $3.58 on Monday after the Company announced the construction of its third cryptocurrency mining data centre in Sweden. The addition of this new data centre is expected to increase the Company’s cryptocurrency mining capacity, or hashpower, by ~175%, and should be completed by December 2017. HIVE Blockchain had recently acquired its second data centre on October 11, 2017.

Read: HIVE Blockchain Stock Has Momentum, Influential Backers

This new data centre will be constructed by Genesis for consideration of an estimated US$22 million. Pursuant to a master services agreement between HIVE Blockchain and Genesis, Genesis will be responsible for hosting, maintenance and related services for the Sweden Data Centre for a monthly fee.

HIVE Blockchain is one of the early entrants to the rapidly-evolving blockchain technologies industry and is the only publicly-listed cryptocurrency miner. HIVE has partnership with, and is backed by, Genesis Mining, one of the world’s leading cryptocurrency mining hash rate providers that owns 30% of the Company.

On September 15, 2017, HIVE Blockchain completed its first acquisition of a state-of-the-art GPU-based blockchain data centre in Reykjanes, Iceland. Post the acquisition, HIVE is focused on establishing a market presence and scaling its mining business to multiple cryptocurrencies. An influential strategic investor in HIVE Blockchain is U.S. Global Investors (NASDAQ:GROW), which announced recently the purchase of 17 million shares of HIVE.

Since its listing on September 18, 2017, HIVE’s stock price has tripled to $3.58 for a market capitalization of $839 million, which is high given lack of revenues and profits currently. However the addition of three data centres within a span of one month will drive revenues in the coming quarters, and its stock price could well make new highs as investors who want to have exposure to this sunrise industry enter this well-capitalized and well-backed technology company.

Disclosure: Neither the author nor any of the principals at SmallCapPower, or their family members, own shares in the company mentioned above.

To read our full disclosure, please click on the button below:

The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. The Reader should apply his/her own judgment in making any use of any Content, including, without limitation, the use of any information contained therein as the basis for any conclusions. The Reader bears responsibility for his/her own investment research and decisions. Before making any investment decision, it is strongly recommended that you seek outside advice from a qualified investment advisor. SmallCapPower/Ubika Research does not provide or guarantee any financial, legal, tax, or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security, or information source. Ubika and/or its affiliates and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities and/or commodities and/or commodity futures contracts in certain underlying companies mentioned in this site and which may also be clients of Ubika’s affiliates. In such instances, Ubika and/or its affiliates and/or their respective officers, directors or employees will use all reasonable efforts to avoid engaging in activities that would lead to conflicts of interest and Ubika and/or its affiliates will use all reasonable efforts to comply with conflicts of interest disclosures and regulations to minimize the conflict.

Let's block ads!(Why?)

Read More HIVE Blockchain Technologies Boosts Mining Capacity, Stock Surge Continues : http://ift.tt/2yJ9HKj

Let's block ads! (Why?)