Hive Blockchain is raising C$110 million through a private placement offering of special warrants to boost its mining power by one exahash per second (EH/s), according to a statement.
- The Canadian miner expects to use the proceeds to develop data centers and acquire mining equipment.
- The company will also use the money for working capital requirements and other general corporate purposes.
- Stifel GMP will be the lead underwriter and sole bookrunner for the offering of about 16.7 million “special warrants” of the company at C$6 each. The gross proceeds to Hive will be C$100 million.
- The “special warrant” holders will receive one unit of the company, which if exercised will consist of one common share of Hive and one-half of one common share of a purchase warrant.
- Hive, which is among one of the biggest Ethereum miners, outperformed most other crypto miners in early trading on Tuesday. But at the time of publication, its shares were down over 7% on Nasdaq.
- On Oct. 29, Hive announced plans to expand its bitcoin mining capacity to 2 exahash per second by December and 3 EH/s by March 2022. An exahash is a measure of computational power.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.