Hive Blockchain to Raise C$110M to Expand Bitcoin Production

Hive Blockchain is raising C$110 million through a private placement offering of special warrants to boost its mining power by one exahash per second (EH/s), according to a statement.

• The Canadian miner expects to use the proceeds to develop data centers and acquire mining equipment.

• The company will also use the money for working capital requirements and other general corporate purposes.

• Stifel GMP will be the lead underwriter and sole bookrunner for the offering of about 16.7 million “special warrants” of the company at C$6 each. The gross proceeds to Hive will be C$100 million.

• The “special warrant” holders will receive one unit of the company, which if exercised will consist of one common share of Hive and one-half of one common share of a purchase warrant.

• Hive, which is among one of the biggest Ethereum miners, outperformed most other crypto miners in early trading on Tuesday. But at the time of publication, its shares were down over 7% on Nasdaq.

• On Oct. 29, Hive announced plans to expand its bitcoin mining capacity to 2 exahash per second by December and 3 EH/s by March 2022. An exahash is a measure of computational power.