Canada-based Hive Blockchain Technologies Ltd. (TSXV:HIVE | OTCQX:HVBTF | FSE:HBF) recently announced it exceeded its ASIC capacity goal of 1,000 petahash per second (PH/s) through the purchase of 6,400 Canaan AvalonMiner 1246 next-generation miners.
Once deployed, the new hardware rigs will increase Hive’s operating hash power by an additional 576 PH/s, bringing the block reward miner‘s total aggregate operating hash rate for ASIC mining to 1,229 PH/s by the end of 2021.
The latest order is nearly double the roughly 3,500 machines Hive bought in 2020. The BTC and ETH miner hopes to reach 2,000 PH/s in operating hash rate by the end of 2021. Hive didn’t disclose details such as the prices.
Hive arranged for the new equipment to be delivered over eight tranches this year, starting in May. Canaan will deliver 500 miners in May and June, with 900 additional miners delivered each month for the rest of calendar 2021.
The latest announcement is a continuation of the aggressive actions Hive has taken since the new year began. The company kicked off January by announcing it purchased 4,180 MicroBT WhatsMiner M31S+ next-generation miners.
The order, funded out of operational cash flows, boosted Hive’s aggregate operating hash power by 334 petahash per second (PH/s). That equipment is also expected to be delivered over nine tranches starting in April.
This month HIVE also announced it closed a non-brokered private placement of unsecured debentures for aggregate gross proceeds of $15 million with U.S. Global Investors, Inc. The debentures will mature 60 months from the day of issuance, bearing interest at a rate of 8% per annum. They will be issued at par, with each being redeemable by Hive and convertible at the holder’s option into common shares.
Hive’s latest spending spree is among the many big ASIC hardware purchases over the past six months. This trend doesn’t seem to be slowing down as other publicly listed companies like Riot, Core Scientific, and Marathon have announced similar such expansions in recent months.
See also: TAAL’s Jerry Chan presentation at CoinGeek Live, The Shift from Bitcoin “Miners” to “Transaction Processors”
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