Hive Blockchain Secures 6,500 Next-Generation Bitcoin Miners Order

Canaan, a publicly traded company, announced on October 29 that it had received a follow-up purchase order from mining operator Hive Blockchain for 6,500 units of Canaan’s next-generation Avalon mining rigs. Hive anticipates increasing the hashrate of the operation from 1.2 exahash per second (EH/s) to 3 EH/s by March 2022.

Hive Blockchain and Canaan announced this week that Hive has secured a follow-on purchase order from Canaan for 6,500 Avalon miners. According to the announcement, the 6,500 mining rigs manufactured by Canaan will be delivered in three installments.

3,000 Avalon miners will be delivered in December 2021, 3,100 in January 2022, and 400 more in February 2022. In January and August 2021, Hive had already acquired 10,400 miners from Canaan.

Hive recently announced that it will be expanding its largest data center campus in New Brunswick, Canada. Hive stated that it intends to add 40 megawatts to the New Brunswick site. The mining operation mines both bitcoin (BTC) and ethereum (ETH), and it has five mining facilities in Iceland, Sweden, and Canada.

Hive Blockchain’s executive chairman, Frank Holmes, stated that the company is pleased to strengthen its relationship with the crypto mining rig manufacturer. “We are pleased to be expanding our strategic alliances with leading ASIC manufacturer Canaan to achieve our goals and drive value for our shareholders, while executing on a transaction that increases our cash flow and green mining capacity,” said Holmes in a statement. The chairman of the mining company added:

Hive currently has approximately 1.2 exahash per second (EH/s) of bitcoin mining capacity, and with this new purchase, Hive’s bitcoin ASIC pipeline will be at 2 EH/s by December 2021, and 3 EH/s by March 2022.

Both bitcoin’s (BTC) and ethereum’s (ETH) prices have risen in the last two months, making both crypto assets far more profitable to mine. The price of BTC has given new life to older generation mining rigs, and companies that mine crypto assets are reaping the benefits. Aside from Hive Blockchain, a number of other companies have placed orders with ASIC manufacturers such as Bitmain, Canaan, and Microbt for next-generation units.

Genesis Digital Assets purchased 20,000 bitcoin mining rigs from Canaan at the end of August, and the company has the option to purchase an additional 180,000 units from Canaan in the future. On Friday, Canaan shares were trading at $8.72 per share, while Hive Blockchain shares were trading at $3.85 per share. Canaan’s stock is down 0.19 percent today, while Hive’s stock is up 0.15 percent.

Patrick

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