HIVE Blockchain Technologies Ltd. (TSXV: HIVE) announces today its plans for a long-term high-performance computing (HPC) strategy. The company asserts this to be the next phase after Ethereum 2.0.
The strategy involves the company investing in high-performance GPU cards to build HPC data centres. With these new cards, HIVE is looking to boost its ethereum hashrate from 3,000 GH/s to 5,500 GH/s by December 2021. The firm also expects these cards to increase its bitcoin hashrate from 544 PH/s to 2.3 EH/s by the end of 2021.
Based on current cryptocurrency prices and circumstances, the company expects a monthly revenue of US$30.0 million by the time the machines have been installed.
On Thursday, HIVE also announced that it recently joined the NVIDIA Partner Network Cloud Service Provider program. This announcement also included the company’s agreement to purchase NVIDIA GPUs for US$66.0 million.
Part of the company’s strategy in the short term includes improving ethereum mining and holding these assets, while in the long term the company expects the HPC infrastructure to support a transition to a focus on gaming, AI and movie animation, making the HPC operations a viable and profitable venture for “at least another 5 years.” The justification for the strategy shift is that Ethereum will be transitioning to a proof of stake mining method in an estimated two years, versus the current method of mining the coin using proof of work, the latter of which tends to have high electricity requirements.
The company is currently working on pilot HPC sites in both Canada and Sweden.
HIVE Blockchain Technologies Ltd. last traded at $3.54 on the TSX Venture.
Information for this briefing was found via Sedar and HIVE. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.