May 29, 2024
Hive Digital's $22M Funding Drive Signals Bitcoin Mining Growth
Bitcoin News

Vancouver’s Hive Digital Raises $22M to Boost Bitcoin Mining Footprint

Vancouver-based Bitcoin mining firm Hive Digital recently concluded a $22 million private financing round, as announced on Dec. 28. This funding was secured through the sale of 5.75 million special warrants at 5.00 Canadian dollars ($3.87) each, resulting in total proceeds of 28.75 million CAD ($22 million). Each special warrant unit comprises one common stock of the company and half of a common share purchase warrant. Holders have the option to exercise their warrant rights and acquire one Hive share at 6.0 CAD ($4.54) for every two warrants they possess before December 28, 2026. The current trading value of Hive Digital stock stands at CAD 7.15 ($5.41).

The company outlined that the proceeds from this offering will primarily bolster the expansion of its Bitcoin mining operations, along with allocations for working capital and general corporate needs. Additionally, Hive Digital aims to retain all its Bitcoin holdings until the impending Halving event.

In November, the company demonstrated an average daily mining output of 9.2 BTC with a mining capacity of 4.18 exahash per second (EH/s). For perspective, the entire Bitcoin network holds a mining capacity of 474.812 EH/s.

Hive Digital reported on Dec. 8 that its fleet of 3,750 Bitcoin ASIC miners, acquired the previous year, has already yielded returns, attributed to the surge in Bitcoin prices. Moreover, the firm expanded its Bitcoin mining activities in Sweden last month. As part of its strategic shift earlier in the year, the company rebranded by including blockchain in its corporate name to signify a focus on financial prospects in artificial intelligence, cloud computing, and graphics processing units.

Image by freepik

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