Hive Blockchain to Raise C$110M to Expand Bitcoin Production

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.

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