Vancouver, British Columbia, Mar 07, 2022 (Newsfile Corp via COMTEX) -- Vancouver, British Columbia--(Newsfile Corp. - March 7, 2022) - HIVE Blockchain Technologies Ltd. /zigman2/quotes/202324457/delayed CA:HIVE -2.04% /zigman2/quotes/208543683/composite HIVE -0.47% (the "Company" or "HIVE") is pleased to make two major announcements today.
We are announcing a supply agreement with Intel Corporation /zigman2/quotes/203649727/composite INTC -1.11% ("Intel") to purchase new high performing ASIC chips that will be incorporated into state-of-the-art mining equipment that will be custom built for HIVE.
We also are announcing that HIVE has entered into a letter of intent with Compute North LLC ("Compute North") to host 100 megawatt ("MW") of mining capacity in one of their new Texas renewable energy data centre facilities. This facility would be our first mining operation in the United States.
Intel Supply Agreement
Frank Holmes, the Executive Chairman said he is thrilled to see the HIVE executive team work together to strategically position the Company to expand into the US with two significant deals. First, HIVE has entered into a Supply Agreement with Intel which is one of the world's largest semiconductor manufacturers, for their upcoming blockchain accelerator.
The Company has also entered into a manufacturing agreement with an ODM (original design manufacturer) that has expertise in electronics manufacturing. The ODM will integrate Intel's blockchain accelerators into an air-cooled Bitcoin mining system. HIVE's engineering team will draw on its expertise in hardware and software implementation and will work closely with Intel and the ODM partner on the systems integration. These miners are expected to be delivered over a period of one year starting in the second half of calendar 2022, the effect of which, if they are all installed, would be an expected increase of up to 95% in our aggregate Bitcoin mining hashrate from 1.9 Exahash per second.
Aydin Kilic President & COO of HIVE said, "After months of careful planning, we are very excited to take this step forward with a global technology leader like Intel. HIVE is committed to implementing these next-generation blockchain accelerators in its green energy infrastructure." Mr. Kilic continued, "This Intel Supply Agreement coupled with the ODM manufacturing agreement creates a pathway from chip production to an ASIC miner that sets us apart from our competitors."
Mr. Kilic noted "Intel's energy-efficient and high performance blockchain accelerator is expected to reduce our power consumption over current ASIC miners on the market. HIVE will participate in the system development process from design verification, through to the prototype stages, and then factory & test engineering regimens to arrive at a production model; we are well-positioned and excited to undertake the process ahead."
HIVE's vision is to be a technology leader in the crypto-mining space, pushing the envelope in research and development initiatives, paired with hashrate analytics, to optimize efficiency of our operations and maximize return on invested capital."
Frank Holmes, Executive Chairman of HIVE, added: "We are very excited to be working with Intel, a North American-based semiconductor manufacturer. This supply agreement represents another milestone in the journey of the Company. In the past year HIVE has been strategically evaluating its path forward for growth in the market and we are very pleased to expand our Bitcoin mining program with Intel solutions. Intel's commitment to challenging the status quo and commitment to energy efficient products aligns very well with our ESG and clean energy commitment."
100 MW of Renewable Energy in Texas
HIVE is also pleased to announce it has entered into a non-binding Letter of Intent ("LOI") with Compute North. Compute North, the industry leader in sustainable, large-scale computing infrastructure is rapidly expanding its footprint with the development of numerous new facilities in the United States. Led by a management team with deep experience in technology, finance and energy, Kyle Wenzel, CCO of Compute North commented, "Our team is proud to be working to accelerate the energy transition and evolve the data centre market to create an efficient platform for computing needs." With a proven track record of being one of the largest crypto-mining infrastructure developers in North America, HIVE is very pleased to take this formative step forward with Compute North.
Frank Holmes stated "Compute North has done an exemplary job of putting the US on the global stage as a reliable and scalable energy market for crypto-miners. Furthermore, their team shares the same commitment to using renewable energy that HIVE has adhered to since its listing as the world's first publicly traded crypto-miner."
Accordingly, the Company is planning for a 100 MW deployment at one of Compute North's renewable energy campuses in Texas. Further details will be announced. Completion of the transactions contemplated by the LOI are subject to receipt of all regulatory approvals including the approval of the TSX Venture Exchange.
The Letter of Intent constitutes a "related party transaction", as such term is defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") as Dave Perrill is a director and officer of ComputeNorth and a director of HIVE. HIVE is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under MI 61-101 on the basis that the Letter of Intent does not exceed 25% of the fair market value of the Company's market capitalization.
About HIVE Blockchain Technologies Ltd.
HIVE Blockchain Technologies Ltd. went public in 2017 as the first cryptocurrency mining company with a green energy and ESG strategy.