The public cryptocurrency mining company HIVE Blockchain has bought 3 thousand rigs for mining (the MicroBT WhatsMiner M30S model) from Foundry Digital LLC (a subsidiary of Digital Currency Group). Mining is a relatively new direction for DCG, given to a subsidiary of Foundry Digital LLC. Whose pool already ranked 7th in Bitcoin mining according to BTC.com.
The speed of delivery is due to the fact that Hive Blockchain intercepted the deal from a large Chinese mine, which was concluded at the beginning of the year. By the time of delivery, the situation in the PRC had changed towards a total ban. In fact, there are no large mines left on the mainland of China.
Moving to other countries for Chinese miners associated with certain risks. Including environmental ones, which Hive Blockchain does not have. The mines of the Canadian company powered by hydroelectric power plants.
Foundry turned to Hive Blockchain after listing companies on NASDAQ, which provided it with additional investments. At the time of writing, HIVE is at $ 2.59 – up 3.5% during the pre-trading period.
Hive will increase the generated hashrate
The delivered equipment with a hash rate of 264 PH / s will join the DCG pool. Increasing production at Hive mines by 46%.
Note that the miners already hosted at HIVE facilities in Canada, but not connected to the public network. Given the current difficulty and price of Bitcoin, HIVE will generate $ 80,000 in additional revenue every day, according to a press release.
The financial terms of the deal not disclosed. It is only known that Foundry Digital LLC will receive 1.5 million warrants. Each of which allows one to buy one ordinary HIVE share at a price of $ 2.49 per share within two years.
The companies have also agreed on partnerships. As part of the deal, HIVE will provide its computing power to the Foundry USA Pool. The cost of one miner WhatsMiner M30S is $ 11.3 thousand, according to the official website of the manufacturer.
The company noted that the new devices will allow it to increase the supply of bitcoins on its balance sheet. Currently, there are 605 BTC in the HIVE reserves. By the end of August, the organization plans to increase the hash rate to 1 EH / s.
According to the information of the analytical service Glassnode, from July 5, bitcoin miners began to accumulate cryptocurrency again. Thus, the hashrate of the main cryptocurrency moved to a recovery, which in June fell by more than half.
Foundry is not the only company that can make money from moving Chinese miners
Foundry is not the only company able to capitalize on the “great Chinese exodus” of miners. The American Compute North from Minnesota, which manages three data centers created for the placement of ASIC miners, is ready to launch facilities with a capacity of 1.2 GW in 2022.
According to the management’s testimony, this amount of energy already “scheduled” for “refugee miners”. Compute North does not fully disclose the composition of the electricity suppliers, but indicates that the sources will not be 100% green.