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Scotiabank Digital Banking Lab

HIVE


Blockchain & Crypto | Vancouver, BC | Founded: 1987 | Employees: 11-50 | www.hiveblockchain.com


PHONE: (604) 664-1078 | LINKEDIN PROFILEBLOOMBERG PROFILE | FACEBOOK PROFILE

Last updated May 23, 2019 | To download a PDF version, click here.

 

Company Overview

HIVE Blockchain is a cryptocurrency miner that focuses on minimizing the environmental impact of their operations. HIVE has four data centers where the natural cool temperatures can reduce the energy consumption to moderate temperatures at the data centers. With an exclusive agreement with Genesis, HIVE can use Genesis’ software for large-scale mining that minimizes temperatures and maximizes returns.


Senior Management

Olivier Roussy Newton: Founder, Director & Interim President (2017-Present). Previously: Partner, Latent Capital (2015-Present). Education: St. Georges School (Date Unknown).

Darcy Daubaras: CFO (2018-Present). Previously: Senior Finance Consultant, FINCAD (2016-2018); Finance Manager, Exeter Resource Corporation (2008-2015); Chief Financial Officer, Rugby Mining Ltd. (2009-2013). Education: BComm, University of Victoria (1996).

History

In June 2017, Leeta Gold Corp. announced that they had reached a strategic partnership with Genesis Mining, a leader in cryptocurrency mining, and would continue operations as HIVE Blockchain.[1] HIVE acquired their first blockchain data center in Iceland where it produces Ether and other alternative cryptocurrencies.[2] In October 2017, HIVE announced that Genesis would help finance a new mining data center in Sweden for $22M which would result in an increased mining capacity by 175%.[3] In March of 2018, HIVE acquired Kolos Norway AS for $9.9M to use their current green data mining center that is located in Ballangen, Norway.[4]

[1] https://global-factiva-com.proxy1.lib.uwo.ca/redir/default.aspx?P=sa&an=CNSW000020170614ed6e00461&cat=a&ep=ASE
[2] https://www.hiveblockchain.com/news/hive-blockchain-currently-leeta-gold-announces-strategic-partnership-with-leading-cryptocurrency-miner-genesis-mining-and-acquisition-of-data-centre-in-iceland
[3] https://www.hiveblockchain.com/news/hive-blockchain-to-expand-cryptocurrency-mining-capacity-by-175-with-new-data-centre-in-sweden
[4] https://www.hiveblockchain.com/news/hive-blockchain-to-acquire-kolos-norway-as-build-major-data-centre

Funding

In June 2017, HIVE had a private placement of 55 million common shares that raised $16.5M which proceeded to be traded under the ticker HIVE on the TSX Venture Exchange.[5] Genesis Mining, a leader in cryptocurrency mining, invested $7M for equity in HIVE in October 2017.[6] HIVE closed its final $65M tranche of its private placement in December 2017 with 20M units sold, led by GMP Securities and Eventus Capital.[7]

[5] https://www.hiveblockchain.com/news/hive-blockchain-currently-leeta-gold-announces-increase-and-full-subscription-of-private-placement
[6] https://www.econotimes.com/HIVE-Blockchain-secures-C7M-equity-investment-from-Genesis-Mining-945035
[7] https://finance.yahoo.com/news/hive-blockchain-closes-final-tranche-143700832.html?soc_src=social-sh&soc_trk=tw


Key Corporate Developments

Press releases: https://www.hiveblockchain.com/news
June 14, 2017: HIVE Blockchain announces strategic partnership with leading cryptocurrency miner, Genesis Mining
Dec 13, 2017: HIVE Blockchain announces major expansion in Sweden
Mar 28, 2018: HIVE Blockchain to acquire Kolos Norway AS

 

Business Highlights

Strategy

HIVE’s current strategy is to quickly acquire, develop and operate data centers in cool climates; an aggressive approach to continue as a market leader. They target regions that have access to reliable, clean and cheap power in politically stable areas, so they can focus on mining various cryptocurrencies with an emphasis on Ethereum.[8]

[8] https://www.sedar.com/CheckCode.do


Products/Pricing

Currently, HIVE is a service which utilizes their computing power to mine various digital currencies constantly. This allows them to provide shareholders with healthy margins from their most profitable and utilized process for their Graphics Processing Unit (GPU) facilities in Iceland, Sweden, and Norway. By using their computing power, HIVE mines Ethereum, Monero, and Zcash but has the flexibility to switch their mining to maximize their returns. HIVE focuses on sustainable data centers by utilizing green energy in cooler climates to reduce the impact of traditional miners that require significant power which can be pricey. As the only public cryptocurrency miner, HIVE prides itself on bringing blockchain technology to capital markets.


Technology

HIVE leverages its technology with its partnership with Genesis Mining. HIVE uses a proprietary software called Genesis Hive which allows them to monitor their facilities in real-time analysis, manage the data centers, and also detect other miners so HIVE can readjust their needs.[9] The data centers that are operated by HIVE are GPU based that allows them to switch their mining needs easily to focus on new cryptocurrencies.[10]

[9] https://www.hiveblockchain.com/investors/presentation
[10] https://www.hiveblockchain.com/investors/faq


Distribution/Logistics

HIVE Blockchain is currently in an exclusive partnership with Genesis Mining who provides technical expertise and existing relationships with manufacturers for their mining hardware. Genesis is the world’s largest cryptocurrency miners and largest cloud mining company which provides essential insights to HIVE’s overall operation.


Marketing

HIVE Blockchain is currently focusing most of their marketing efforts towards the branding of the company after their name change and business model.

 

Competitors

Anyone can mine cryptocurrency which makes for a very competitive industry that HIVE operates in. The main competitors that HIVE faces within the commercial industry include:

  1. HashChain – (Vancouver, BC) HashChain mines cryptocurrency in two low energy data centers as well as cryptocurrency accounting and masternode hosting.
  2. DMG Blockchain – (Vancouver, BC) DMG offers various Blockchain and cryptocurrency solutions with one of its main operations being bitcoin mining on behalf of third parties around the world.


Corporate Profile Created By: Connor Childs, Ivey HBA Candidate 2019