In a press release on Friday, HIVE Blockchain (HIVE) announced its ambitious plan to significantly increase its computing power, also known as hashrate, aiming to reach an impressive 6 exahash/second (EH/s).
To finance this growth target, the mining company will leverage an at-the-market (ATM) sale, although no specific timeline for achieving this goal was mentioned. HIVE revealed that it intends to gradually enhance its hashrate from the current 3 EH/s to 4 EH/s by the conclusion of the second quarter, utilizing machines that have already been acquired.
As the cryptocurrency industry emerges from the challenging phase of the “crypto winter,” which witnessed the struggles and bankruptcies of several miners, new prospects and operational objectives are taking center stage.
Plans to Fuel Mining Industry’s New Growth Targets
HIVE Blockchain has announced its intention to conduct an ATM offering, aiming to sell up to $100 million worth of common shares. Esteemed Canadian investment firms Canaccord Genuity and Stifel have been appointed as agents for this significant venture.
With each exahash of Bitcoin (BTC) mining computing power estimated at $30 million, the proceeds from this offering hold the potential to finance up to 3 EH/s of growth, propelling the industry forward into a new era of opportunity.
As part of its expansion efforts, the Canadian mining company has acquired 1.26 exahash/second (EH/s) of cutting-edge machines. Among these, 0.71 EH/s consists of Bitmain Antminer models, while the remainder consists of Hive’s custom rigs integrated with Intel (INTC) semiconductors.
Notably, Intel discontinued its mining chip series in April. Highlighting the efficiency and cost-effectiveness of its mining rig fleet, HIVE emphasized the potential for optimizing near-term repayment of investments through the cash flow generated by operating these machines.
The press release underlined the company’s focus on power efficiency and purchase price, laying the groundwork for a strategic approach to maximize returns. Following the Ethereum Merge, HIVE has successfully repurposed graphics-processing units (GPUs) previously utilized for Ether (ETH) mining, enabling the company to mine both Bitcoin and various other cryptocurrencies.
As of April’s end, HIVE’s impressive hashrate consisted of 3.14 exahash/second (EH/s) of Bitcoin computing power, alongside 0.16 EH/s dedicated to GPU mining. This strategic diversification highlights the company’s adaptability and commitment to maximizing mining efficiency across multiple cryptocurrencies.