Hive Blockchain Tech (TSXV: HIVE) this morning announced that it has entered into new hosting and management agreements for its GPU-based high performance computing equipment in Iceland. Effective June 1, the new agreements are expected to significantly improve the profitability of operations in the country.
Overall, the new agreements are anticipated to reduce monthly facility and operations costs by 50% in comparison to the previous service provider Genesis Mining. The agreements will also see an upgrade in colocation facilities, as well as improved efficiency and output of GPU operations. The new agreements will also enable the company to assume direct control of operations in Iceland while lowering the costs to mine Ethereum and other digital currencies.
The first agreement will see a subsidiary of Hive engage Advania Data Centers under an initial two year agreement. The agreement is for that of hosting and related services for 4,000 GPU-based cryptocurrency mining rigs, with Hive having the option to expand operations by up to 40%.
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The second agreement will see an expanded relationship with that of Blockbase Group for the purpose of software services and optimization services of GPU’s in Iceland, similar to the arrangement previously entered for the Sweden facility.
We now have full control of our operations and destiny globally. This is an important step in our approximately 18-month process to increase transparency, accountability and profitability across our mining operations. We wish to thank Genesis Mining for their assistance in our transition processes in Iceland and in Sweden last fall, and we look forward to providing value to them as a HIVE shareholder along with our other shareholders.
Frank Holmes, Interim Executive Chairman of HIVE
A firm timeline for the transition was not provided as a result of the travel restrictions currently implemented due to the ongoing pandemic.
Hive Blockchain last traded at $0.39 on the TSX Venture.
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