Although gold mining activities in Canada have been very popular over the years, one newer form of mining is expected to make a greater impact in the future. Cryptocurrency mining is looking to be a major activity. This entails not only producing new coins for sale but also with taking advantage of the significant rise in the value of such currencies as they continue to thrive.
The Hive Blockchain Technologies company has received an extensive amount of support from many high-profile backers including prominent golf miner Frank Giustra. The company is one of the first publicly traded groups in Canada to offer cryptocurrency mining services. This comes as the company is shifting its focus from gold mining and focusing on a market that appears to be growing at a faster rate.
Hive Blockchain had been working in gold mining functions albeit under a different name. The move to cryptocurrency mining marks a significant change as the currency industry appears to be growing substantially.
Reports suggest that Hive is only mining the bitcoin at this moment. It is anticipated that the company will start mining other currencies in the future.
The move comes as people are looking for CFDs and ETNs for their cryptocurrency investments. The mining functions Hive is utilizing are helping to make it one of Canada’s top leaders in the field of currency mining.
How Much of a Return?
Frank Giustra stated recently that he has attained a massive return on his initial investment in Hive. He estimates his return has grown by at least six times in value since it started.
The original share sale in Hive brought in CAD $30 million. The market cap has expanded in size to around CAD $550 million. This growth started before the bitcoin rose in value to more than USD $5,000 per coin with no real telling how high up the value will go.
This especially comes as there are not many other companies that are introducing investors to cryptocurrency options. Hive is allowing people to get into some of the earnings that come with the mining industry although it is expected that additional competition will come about in the near future as the field grows.
The Mining Process
The mining process being utilized by Hive Blockchain is working with a massive array of computers producing various cryptocurrencies. Details on how much Hive is spending on its computers are unclear although it is known that Hive will be expanding its mining reach.
Hive is planning on buying a new Genesis Mining data center at some point in time. It will also be purchasing mining equipment currently being used in Sweden and Iceland. The purchases would allow Hive to have access to more materials to help them produce the bitcoins and other currencies they are looking for.
Hive Blockchain is expected to keep on growing and expanding its reach in the cryptocurrency world. This marks a dramatic change from the original focus on gold that the company had used. The group is especially expected to grow in Canada.
Written by Michael Fox