HIVE is a publicly-listed blockchain infrastructure company that operates a mining operation in Iceland. Here’s our review.
What is Hive Blockchain?
HIVE Blockchain Technologies Ltd. is the first publicly listed blockchain infrastructure company. The company’s shares (TSX-V:HIVE) reached a market cap of $2 billion CAD in early November, making headlines around the world.
HIVE is headquartered in Vancouver. The company was formed as part of a partnership between Genesis Mining and Fiore Group. HIVE is officially the first publicly traded cryptocurrency miner in Canada. In the first weeks of trading, the company has already set records for trading volume on the TSX Venture index.
HIVE has plans for aggressive growth, including a two phase expansion in Sweden that’s scheduled to be completed in March 2018.
One of the unique things about HIVE is that it hasn’t sold any of the currencies it has mined so far (including Ethereum and ZCash). It also plans to hold a significant portion of its mined coins as investments.
HIVE is also notable for its partner with Genesis Mining, one of the biggest companies in the space. HIVE’s partnership with Genesis gives it a direct competitive advantage, including access to in-demand GPUs and Genesis’s proprietary technology (including Genesis Hive, their mining software that adjusts power consumption and chip temperatures on-the-fly).
Overall, HIVE promises to power the future of blockchain computing.
Advantages of HIVE
Why has HIVE’s stock price been rising over the past few weeks? Here are some of the advantages the company has, according to their official website and other sources.
First Mover Advantage
HIVE is the first publicly listed blockchain infrastructure “that bridges blockchain and cryptocurrencies to traditional capital markets.”
The company also emphasizes its ability to accelerate development of the blockchain sector through traditional capital markets while creating long-term value for shareholders.
Plus, the company has an experienced team and advisors “who have been integral to the success of several billion dollar companies.”
Cash Flow Positive
HIVE is also cash flow positive. The company owns an active mining facility in Iceland. That GPU-based mining facility has low energy costs in one of the world’s most stable countries. Low working capital requirements also mean that HIVE can strategically hold onto its mined tokens, then sell coins to maximize profit when the timing is right. In other words, the company doesn’t need to immediately sell coins in order to generate a profit.
Overall, HIVE claims it has a “healthy balance sheet” that gives them “flexibility to pursue further blockchain opportunities.
One of the biggest advantages of HIVE is its partnership with Genesis Mining, the world’s leading cryptocurrency mining hashpower provider. That means HIVE can leverage Genesis Mining’s expertise, IP, and procurement power to develop new facilities and other businesses.
At the same time, HIVE retains the option to acquire at least three additional data centers in Iceland or Sweden from Genesis.
HIVE has an exclusive agreement with Genesis to operate its data centers under a “Master Service Agreement”. The data centers will be monitored with Genesis Hive, which is Genesis’s proprietary software tool for large-scale mining. That software allows for the automatic optimization of chip temperatures and power consumption for maximum coin production.
How Does HIVE’s Mining Operation Work?
HIVE is a cryptocurrency mining company. They have an active operation in Iceland. By March 2018, they plan to expand to purchase an additional, existing mining operation in Sweden.
HIVE’s mining process works like other cryptocurrency mining operations. The company’s network of GPU miners validates transactions on blockchains. Rewards are paid in cryptocurrency, and HIVE holds onto these tokens (or sells them strategically) to earn a profit.
HIVE chose Iceland for its access to low-cost green power, its cold climate, and its fast internet connections. Countries that have low power costs, green energy sources, and naturally cold temperatures tend to offer the best conditions for mining. Iceland is also ideal because it provides a link between Europe and North America.
HIVE’s Iceland-based cryptocurrency mining project was completed in May 2017 (Genesis Mining completed the construction, while HIVE purchased it). HIVE has the option to acquire at least four additional data centers from Genesis in Iceland and/or Sweden.
HIVE isn’t just partnered with Genesis Mining. Instead, the company wouldn’t exist if not for a partnership between Genesis Mining and Fiore Group. The company emerged from a partnership between these two companies, who decided to work together to accelerate development of the blockchain sector through traditional capital markets, developing the leading listed blockchain infrastructure company. HIVE is the end result of that partnership.
Genesis Mining was founded in Hong Kong by early bitcoin investors. Today, Genesis Mining has the largest cryptocurrency mining and cloud mining operation in the world with over a million customers. Their first large-scale mining facility was built in 2014.
Fiore Group, meanwhile, is a private firm that manages a broad portfolio of private equity investments and companies.
Fiore Group and Genesis Mining announced their partnership in June 2017.
HIVE is led by Harry Pokrandt (CEO, President, and Director), Frank Holmes (Chairman), Olivier Roussy Newton (Director), Bjoern Arzt (Director), Tobias Ebel (Director), and Jessica Van Den Akker (CFO).
Meanwhile, the HIVE advisory team includes Marco Streng (co-founder and CEO of Genesis Group), Jakov Dolic (co-Founder and Head of Sales of Genesis Group), and Dr. Marco Krohn (co-founder of Genesis Group), along with Frank Giustra (CEO of Fiore Group) and other Fiore Group executives.
HIVE is based in Vancouver, Canada. You can contact the company by email at [email protected]
Final Thoughts On Hive Blockchain
HIVE is a Canadian blockchain infrastructure startup. The publicly-listed company has seen its share price surge on the TSX: Venture index since launch. HIVE was formed as a partnership between Genesis Mining, the world’s largest cryptocurrency mining company, and Fiore Group, a private investment firm. This partnership allows HIVE to utilize Genesis’s proprietary technology – including Genesis Hive software – while purchasing Genesis mining operations around the world.
Today, HIVE has a single mining operation in Iceland, with the option to buy four more in Iceland and/or Sweden within the next few months.
To learn more about HIVE and how it works, visit online today at HIVEBlockchain.com.