HIVE Blockchain Technologies has closed a CAD $115m financing round, following the CAD $65m final stage of the private placement.
The investment round was co-led by GMP Securities and Eventus Capital, while Haywood Securities. and PI Financial also took part.
This last stage of the private placement saw 20 million units sold at CAD $3.15 apiece. Each unit consists of one common share and a share purchase warrant, which enables a holder to buy one share for CAD $3.90. HIVE is expecting the warrants to be listed on the TSX Venture Exchange, once the holding period of 30th April 2018 ends.
HIVE is a blockchain solution developer that aims to help foster the bridge between the traditional capital markets sector and the blockchain market. The company currently has a digital currency mining facility in Iceland, which is producing tokens like Ethereum.
The company’s largest shareholder Genesis acquired 952,380 units during the final stage, which represented CAD $3m. Following this investment, Genesis holds 25.62 per cent of the shares in HVE.
With the capital injection, HIVE is planning to use the proceeds to complete the Sweden Bitcoin Data Centre and the expansion at the Sweden GPU Data Centre.
HIVE president, CEO and director Harry Pokrandt said, “This financing provided us with a highly accretive growth opportunity – increasing our overall computing power by more than 150% (from 17.4 MW to 44.2 MW) with just 11% dilution to shareholders. In addition to our fully funded projects in Sweden, we will now have a strong working capital balance of approximately US$50m and significant flexibility to explore further projects and acquisitions.”
Last year, the first three months of 2017 saw the blockchain sector’s funding levels rise QoQ. The opening quarter of 2017 saw just $95.3m investment, while Q3 saw $404.8m invested.
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