HIVE is also progressing in development of the Intel Blockscale ASIC miner, with functional test units expected this month, for the HIVE engineering team to operate and test in its facilities, with prototype production expected for late summer, and mass production scheduled to launch this fall.
As it pertains to rapidly scaling, HIVE has endeavoured to first find sources of low-cost green energy before buying large allocations of GPUs or ASIC miners to maximize our efficiencies and generate robust returns on invested capital. In our market intelligence, the Company has noticed supply disruptions for electrical equipment needed to make data centers, such as transformers and switch gear. Striving to scale large production has run into many roadblocks due to these supply line issues. New miners who only recently placed their orders may face severe delays.
Our research from China shows the lockdown of over 30 cities has created an epic traffic jam of empty ships waiting to pick up manufactured products in ports along the China coast. This is impacting their whole manufacturing sector, as well as other industries which rely on these suppliers. We are closely monitoring the trade off between risks of not receiving needed electrical and hardware for building data centers and Bitcoin mining machines
ETH Profits to Fund Intel Bitcoin Miners
Despite the recent fall in price, Ethereum has outperformed Bitcoin over the last year. We decided it was prudent to take some profits in ETH due to its higher volatility and have sold approximately 10,000 coins.
We significantly reduced our ETH holdings to fund our Intel strategic relationship and the building of new Bitcoin miners. However due to continued expansion of our ETH mining capacity, we will look to replace those coins in the near future.
We will continue to look to sell ETH at strategic times to fund our long-term Bitcoin mining goals. We see our ETH mining operations as a highly profitable and less competitive niche we can take advantage of for long enough to become a large player in the Bitcoin mining space. If for some reason, ETH never transitions to proof-of-stake, that will all be "gravy", as they say.
Network Mining Difficulty
The Bitcoin network difficulty increased as much as 5% during the month of May, although corrected by -4% towards the end of the month; similarly, the Ethereum network difficulty increased by an average of 4.6% during the month of May. These factors negatively impact our gross profit margins.
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.
HIVE is a growth-oriented technology stock in the emergent blockchain industry. As a company whose shares trade on a major stock exchange, we are building a bridge between the digital currency and blockchain sector and traditional capital markets. HIVE owns state-of-the-art, green energy-powered data centre facilities in Canada, Sweden, and Iceland, where we source only green energy to mine on the cloud and HODL both Ethereum and Bitcoin. Since the beginning of 2021, HIVE has held in secure storage the majority of its ETH and BTC coin mining rewards. Our shares provide investors with exposure to the operating margins of digital currency mining, as well as a portfolio of cryptocurrencies such as ETH and BTC. Because HIVE also owns hard assets such as data centers and advanced multi-use servers, we believe our shares offer investors an attractive way to gain exposure to the cryptocurrency space.
We encourage you to visit HIVE's YouTube channel here to learn more about HIVE.
On Behalf of HIVE Blockchain Technologies Ltd.
For further information please contact:
Tel: (604) 664-1078
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release
Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian securities legislation that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes, but is not limited to, business goals and objectives of the Company; and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the volatility of the digital currency market; the Company's ability to successfully mine digital currency; the Company may not be able to profitably liquidate its current digital currency inventory as required, or at all; a material decline in digital currency prices may have a significant negative impact on the Company's operations; the volatility of digital currency prices; continued effects of the COVID-19 pandemic may have a material adverse effect on the Company's performance as supply chains are disrupted and prevent the Company from carrying out its expansion plans or operating its assets; and other related risks as more fully set out in the registration statement of Company and other documents disclosed under the Company's filings at www.sec.gov/EDGAR and .
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's objectives, goals or future plans, the timing thereof and related matters. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
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