Ether mining, bitcoin mining… At the end of the day, for companies like HIVE, it’s all part of the same process: extracting new coins and placing them on the market to be sold, traded and hodled if need be.
HIVE Expands Its Mining Power
That’s why an ether mining company has just purchased a bitcoin mining firm. Sure, the coins may be different, but if the technology and the methods of extraction are virtually the same, why the heck not?
The company making the purchase is known as HIVE Blockchain Technology. Based in Canada, it’s a publicly traded ether mining facility, and the company is now looking to expand its horizons and mine additional coins. The facility in question comes from a venture known as Cryptologic Corp in Quebec. HIVE has purchased the building for a record $4 million in CAD (close to $3 million in USD).
The facility is said to provide as much as 30 megawatts of mining power, which means HIVE will likely be able to extract a lot of new coins quickly. At press time, HIVE has other facilities in countries such as Sweden and Iceland. The purchase of the new mining facility now means that its global rate of power exceeds 50 megawatts.
Frank Holmes – interim executive chairman of HIVE – explained in a statement:
This is an important strategic acquisition for HIVE that diversifies our business significantly, and we are making it at an opportune time at an attractive valuation for our shareholders. The acquisition provides us with an advanced, operating bitcoin mining facility ready to transition to next generation mining hardware with access to some of the lowest cost electricity on the planet. The cost of US $95,000 per MW is less than half the industry standard build cost per MW.
This would all be fine and dandy except for one little thing: at the time of writing, bitcoin mining – and the extraction of any new coin in general – is considered a fool’s game considering how much cryptocurrencies have dropped in price over the past few weeks.
Bitcoin has entered a bear market that isn’t quite letting up. Today’s early morning hours saw bitcoin trading at about $6,300 – a $400 drop from where it stood on Friday. In addition, Ethereum has also fallen, and many mining firms are closing their doors indefinitely, claiming that the extraction of new coins isn’t a profitable venture – at least not right now.
Is Now Not a Good Time for Mining?
Specifically, mining firms in California like Digital Farms say that there is no point in continuing to mine bitcoin so long as the price remains below $8,000.
Nevertheless, it looks like HIVE is intent on continuing its present mining operations and is eager to expand its power across the globe. The deal is expected to close no later than April 3 (this coming Friday).