The blockchain industry is on a roll, and the HIVE blockchain continued the momentum on April 19, 2021. It completed the acquisition of a 50 MW (megawatt) data center from GPU.One Holding Incorporation in New Brunswick.
The data center will be used to expand the company’s reach in Canada. The move will serve multiple purposes like mining coins on the cloud from low-cost surplus eco-friendly green energy sources. The proceedings will be enhanced even more with the deep data management joining HIVE.
Data Centre Acquisition
The undertaking of the data center came through the company’s subsidiary named HIVE Atlantic Datacentres Limited. The deal involved a substation with 50 MW capability and an esteemed data center campus based in New Brunswick’s Grand Falls.
The price involved in the transaction amounts to 25 million Canadian dollars paid by issuing 4,600,000 HIVE shares to GPU one. The rest is paid via 400,000 shares to GPU One’s partner at 5 Canadian dollars per share.
From the former set of shares, 1,000,000 shares will be used as earn-out and holdback to GPU One to deliver the specific conditions. With this trade, HIVE’s total power capacity will reach 100 MW, making it the largest among the public-listed crypto miners.
Another reason behind HIVE’s acquisition of the data center is to keep up with trends like NFTs, Ethereum, DeFi, and Stable coins. The revenue HIVE earned from these sectors was exceptional, so they continue upgrading their memory cards from 4 GB to 8 GB. Although their equipment from China is facing delay, they continue to earn profits with the 4 GB memory cards.
GPU Atlantic Inc.
The campus GPU Atlantic provided to HIVE can host around 30% of HIVE’s new-gen mining tools. It also provides electrical capability, materials, and space, growing the existing infrastructure. They plan to deliver another data center with 20 MW capability in the third quarter of 2021.
- Growing HODL: GPU has mined and banked both ETH and BTC, expanding their inventory over 75 million US dollars. Ethereum pertains to be GPU’s primary crypto asset even in 2021.
- ETH Classic: GPU indulged in ETH classic mining even when its price was 20 US dollars. The reason behind the same was its profitable payback in a short span. The coins are traded and mined to cover the admin and general charges while reducing ETH & BTC production costs.
Both HIVE and GPU are renowned names in their respective fields, and them joining hands even for a deal will help the industry. With HIVE acquiring 50 MW of capacity while planning to add 20 MW, it is safe to assume that HIVE’s market reach will skyrocket in 2021. GPU also plans to keep investing in ETH, which seems to be working for them. All in all, the blockchain industry will see great strides from both ventures shortly.