The crypto mining company with its base in Sweden works on GPU based mining hardware and leverages the Hydroelectricity available in the region for cheap.
The implementation of this grand scheme would be carried out over 2 phases in the next 6 months with the ultimate ambition is to increase the existing facility by 20 percent.
Hive blockchain technology is pretty optimistic and expects the gross mining margin profile to increase.
Speaking on the ambition of the company, the interim executive chairman Frank Holmes stated:
“We strongly believe in the future of Ethereum mining and are therefore strengthening and maximizing our core operation with this project.”
HIVE calculations suggest that around $200,000 per additional megawatt would be the cost the company would have to bear, including capital expenditure and GPU hardware. The company had to spend $3.2 million per MW when they originally started to develop the facility.
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HIVE’s Swedish based mining facility would experience an increase of 10 percent which would lead the company to leverage and enhance its a professional relationship with nearby suppliers and with another block base mining group.
When the cryptocurrency market rebound it leads to the additional demand of the mining sector. Ethereum last month was within touching distance of $300 dollar. Now that the market is suffering from a slump it has come crashing down at $171 per ethereum.
The ethereum network is extremely likely to introduce progressive proof of work in this year, which would make the ASIC network obsolete on the platform. This could potentially lead to further GPU mining efficiency.
Holmes went on to add that with added GPU efficiency, they can identify and focus on other cryptocurrencies too whether old or new if with time they become profitable to mine.
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