Hive Blockchain Purchases 6400 Bitcoin Miners to Achieve Capacity Goal

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by John K. Kumi · 3 min read
Hive Blockchain Purchases 6400 Bitcoin Miners to Achieve Capacity Goal
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The initial tranche will see 500 pieces of equipment delivered within May and June. Then each month 900 pieces of equipment would be delivered over the course of the year. 

In a bid to reach an estimated hash rate of 1000 PH/s, HIVE Blockchain Technologies Ltd has purchased 6400 Bitcoin miners from Canaan according to an official announcement. This means the earlier planned 1000 PH/s yearly end goal by the company would be surpassed to 1229 PH/s.

Hive Blockchain has over the years prioritized the constant utilization of cash flow to invest in ASIC and GPU next-generation mining machines powerful enough to ensure that a positive gross mining margin is provided. This move was executed despite the impact of the COVID-19 affecting the supply of miners and logistics globally, most especially in Asia.

Details of the Hive Blockchain Miners Purchase

Hive Blockchain has a yearly ASIC capacity goal of 1000PH/s which will be overachieved after the purchased 6400 Canaan AvalonMiner 1246 next-generation are deployed. The announcement estimates that the purchased miners boast of aggregate hash power of 576 PH/s. This means the ending of the year will see Bitcoin mining with a hash rate of 1229 PH/s or 1.229 EH/s. The terms of the order require that the miners should be delivered in 8 batches. The initial tranche will see 500 pieces of equipment delivered within May and June, and then 900 pieces of equipment delivered over the course of the year monthly.

The order placed for the equipment was part of the plan agreed to achieve the 1000 PH/s goal by the end of the calendar year. Interestingly, this was done faster than expected. According to the company, they now have their eyes on new measures to ensure that their Bitcoin mining capacity is taken to 2000 PH/s by the end of the year 2021.

Hive Blockchain has been making a lot of investments to improve upon the capacity of Bitcoin mining with the current number of miners purchased doubling the less than 3500 machines purchased at year.

Just recently, Hive Blockchain announced the purchase of 4180 MicroBT WhatsMiner M31S+ next generation miner. These have an aggregate operating hash power of 334 PH/s. Similar to the terms of the recent purchase, the machines are expected to be delivered in 9 tranches with the first delivery of 180 pieces of equipment expected to be made in April 2021. The remaining 500 miners will be delivered in the remaining months starting from May. These were all part of the steps taken to achieve the 1000 PH/s. The initiatives were funded from their operational cash flow according to the report.

Hive Blockchain in the previous year’s results revealed they made a lot of efforts to produce 22,000 Ethereum in the quarter ending on December 31, 2020. They ended with an inventory of 13,100 Ethereum. Their green energy is sourced from facilities in Iceland and Sweden, becoming the leading producer of Ethereum. Their Bitcoin production has also been improving massively with the quarter ending December 31, 2020, wrapping up with inventories of approximately 140 coins.

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John K. Kumi
Author John K. Kumi

Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.

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