Hive Blockchain Technologies, a crypto mining company, unveiled its two-phase plan aiming to expand its Ether (ETH) mining operations. The expansions are set to take place at the company’s flagship GPU-based facility located in Sweden. Official reports reveal that Hive is targeting expansions of more than 20%.
Hive describes the current moment in a press release as “an opportune time” to increase its ETH mining capacity. The company’s Swedish facility is hydro-powered. Officials say that the expansion is expected to cost capital expenditures of only $200,000, including hardware for every additional megawatt of processing power.
Nevertheless, the contention is increasing within the Ethereum community about the upcoming ‘ETH 2.0’ revamp, coupled with the expected transition to a Proof-of-Stake (PoS) protocol. Reporters spoke to Frank Holmes, Hive’s interim executive chairman, to get his opinion on the Ethereum mining industry.
Give a short overview of your different mining operations
Frank Holmes responded by saying that Hive owns state-of-the-art GPU-based digital currency mining facilities located in Sweden and Iceland. These facilities produce newly minted digital currencies continuously, including Ethereum.
A lot of the mining activities happen at the flagship facility in Sweden, as explained by Holmes. A small operation occurs in Iceland, and the chairman confirmed that they mine Ethereum Classic as well.
What factors contributed to the company’s decision to expand its ETH mining operations?
Holmes said that the critical factor is that the company recently completed the assumption of total control of its operations in Sweden. This development now gives the company full visibility into the costs of the build-out for an expansion. They can now expand their mining activities at a considerably lower cost compared to their original facility that was set up about two years ago.
“From an operating point of view, we have also improved our mining efficiency and significantly lowered our operating and maintenance costs in Sweden since we took control of operations. Additionally, mining market conditions have improved since December.”
Plans for GPU mining after Ethereum shifts to proof-of-stake
Reporters asked Holmes about his company’s plan for their GPU mining activities after ethereum transitions to PoS. He said that although PoS and probably any other consensus mechanisms that might come up in the future currently exist in parallel with the current standard, they are convinced that Proof-of-work will always play a key role. He added:
“The current proposhttps://youtu.be/Q3Ai05LsL1wal for Ethereum’s shift to proof of stake from proof of work has a number of unknown variables, including uncertainty over timing, execution and ultimate adoption; and there is not yet a definitive plan that is established and approved.”
In the case that Ethereum’s shift to proof of stake might happen, Hive’s GPU-based mining offers adequate flexibility to focus and identify computing resources on the existing and new cryptos. It also identifies the cryptocurrencies that use the proof-of-work standard as they continuously become more profitable to mine.
Also, GPU-based mining identifies and focuses on other high-efficiency computing applications like graphic rendering, artificial intelligence, and private blockchain computing. All these applications are rapidly becoming more widespread as the blockchain technology grows and develops constantly.
What to expect from Hive in 2020
Holmes said that the company aims to improve the profitability of their Iceland facility just like they have done in Sweden. If it proves challenging, they will move the equipment to a lower-cost jurisdiction. Furthermore, the latest management initiatives have created an enhanced balance sheet and improved cost certainty.
Thus, Hive can now take all the necessary measures and precautions, enabling them to make strategic investments that will drive future growth. For now, the company is thoroughly assessing its expansion opportunities to determine the best use of their capital going forward.
Undeniably, Bitcoin halving is a significant event in the mining world this year. As the event approaches, crypto mining companies are scrambling to get ready for the halving. They are upgrading their mining equipment to include the next-generation processor chips that are significantly faster and more energy-efficient.
With many expecting that Bitcoin will register a new all-time high, it is also likely that it will take the entire crypto market on a major bull run. Thus, Hive and other mining companies irrespective of the crypto that they mine are gearing up to benefit from the Bitcoin halving event in May.