Canada-based Hive Blockchain Technologies Ltd. announced it exceeded its ASIC capacity goal of 1,000 PH/s through the purchase of 6,400 Canaan AvalonMiner 1246 next-generation miners.
Alex Leigl, the CEO of Layer1 Technologies has been embroiled in a legal battle with the firm’s founders, culminating in a settlement that sees him leave the firm he has led since 2018.
The leadership team at Vancouver-based Hive Blockchain Technologies Ltd (TSXV:HIVE | OTCQX:HVBTF | FSE:HBF) has staked the company's future on this false narrative. The Toronto Stock Exchange-traded company recently announced the expansion of its ASIC hardware fleet, which increases its total hash power by nearly twofold from 116 PH/s to 229 PH/s.
The block reward miner purchased 1,240 new MicroBT WhatsMiner M30S ASIC mining rigs, which they immediately deployed. The miners have an aggregate operating hash power of 113 petahash per second (PH/s) and cost the company approximately US$2,715 per unit, or US$3.4 million in cash.
DMG Blockchain Solutions Inc. hosts the new servers at their facility in Christina Lake, British Columbia.
This story is just the latest chapter in Hive's expansion. The firm has been on an aggressive year-long purchasing spree in the hope of garnering a higher share from the magic growth of the decaying BTC block reward mining sector. Hive is also one of the largest publicly traded miners globally of the poorly designed and unusable Ethereum blockchain.
Frank Holmes, Interim Executive Chairman of HIVE commented, "The vision of the Company is to achieve an aggregate operating hash power of 1,000 PH/s within the next 12 months." Holmes has no plans to pivot toward the more sustainable and lucrative path that leads to enterprise adoption.
Hobby platform Ethereum and price speculation token BTC are deadwood to steer clear of. Soon there may be no one maintaining or improving the code. There's a massive difference between an investment and a gamble. If company executives are simply throwing operating capital into buying more servers without a sustainable business model, they're not the next Steve Jobs. I'm sorry. They're just a gambler like Phil Ivey.
Until block subsidy reward mining companies can attribute the revenue growth to a specific and intentional action their team has taken, and when they can consistently repeat the effort to achieve similar results, that's when it's reliable, predictable investable growth. Everything else is just magic: nerve-racking to watch and not something anyone should invest in or mimic.
See also: TAAL’s Jerry Chan presentation at CoinGeek Live, The Shift from Bitcoin “Miners” to “Transaction Processors”
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The block reward miner purchased 1,240 new MicroBT WhatsMiner M30S ASIC mining rigs, which they immediately deployed.