16m | Melanie Mingas
Canada’s HIVE Blockchain Technologies Ltd. Has acquired GPU.ONE subsidiary GPU Atlantic in a CA$25 million deal.
As part of the deal GPU Atlantic’s recently constructed 50MW data centre campus in Grand Falls, on Canada’s East coast, is now owned by the listed cryptocurrency miner.
The fully operational facility features a 50 MW substation, two fully operational data centre buildings offering a combined 30 MW of ready-to-plug space, and electrical infrastructure that GPU said is “unique to cryptocurrency mining”.
Due to the facility’s low electricity prices, HIVE said miners are expected to generate positive gross mining margins under current market conditions.
The acquisition will more than double HIVE’s total available power capacity globally to approximately 100 MW, placing it among the largest of any publicly-listed cryptocurrency miners, and provide significant diversification to its business both geographically and by blockchain network.
“This is an important strategic acquisition for HIVE that diversifies our business significantly and adds one of the industry’s top data centre operators to our ranks, at an opportune time, and at an attractive valuation for our shareholders,” said Frank Holmes, executive chairman of HIVE.
“The acquisition provides us with full ownership of a state of the art and operational Bitcoin mining data centre ready to deploy our incoming next generation bitcoin mining hardware with access to some of the lowest electricity costs in the industry,” he added.
The deal will also see “key employees” from GPU One retained to lead GPU Atlantic, including CEO and director of legal, Gabriel Ibghy.
Ibghy is a practicing attorney and MBA and has extensive experience in the field of cryptocurrency mining, data centre construction, operations and management.
HIVE describes itself as one of the world’s largest public miners on the Ethereum blockchain and said this acquisition places it among the world’s larger publicly-listed miners of Bitcoin. It owns green energy-powered data centre facilities in Canada, Sweden, and Iceland which produce newly minted digital currencies like Bitcoin and Ethereum continuously on the cloud.
“Additionally, this acquisition further enables HIVE to continue in its objective of having control of its destiny, including significant capacity for expansion and flexibility for our future operations. We now have a 50 MW data centre campus to build up and a home for our new generation Bitcoin miners. We are also very excited about integrating new members of the GPU One team into our ranks and deploying their in-house mining management software into our operations on a global scale,” said Frank Holmes, executive chairman of HIVE.