Cryptocurrency mining firm Hive Blockchain Applied sciences introduced a two-phase plan to develop its Ether (ETH) mining operations on the firm’s
Cryptocurrency mining firm Hive Blockchain Applied sciences introduced a two-phase plan to develop its Ether (ETH) mining operations on the firm’s flagship GPU-based facility in Sweden by greater than 20%.
In a press launch, Hive describes the present second as “an opportune time” to develop its ETH mining capability. Hive’s Swedish facility is hydro-powered, and together with {hardware}, the growth will incur capital expenditures of simply $200,000 per further megawatt of processing energy.
Nonetheless, with rivalry rising inside the Ethereum neighborhood in regards to the upcoming ‘ETH 2.0’ revamp and anticipated transition to a Proof-of-Stake (PoS) protocol, Cointelegraph spoke to Hive’s interim govt chairman Frank Holmes to get his ideas on the Ethereum mining sector.
Cointelegraph: Might you present a short overview of your numerous mining operations?
Frank Holmes: Hive owns state-of-the-art GPU-based digital forex mining services in Iceland and Sweden, which produce newly minted digital currencies like Ethereum constantly. The overwhelming majority of mining happens at our flagship facility in Sweden, with a small operation in Iceland. We additionally mine Ethereum Basic.
CT: What elements contributed to Hive’s resolution to lately develop its ETH mining operations?
FH: The key issue is that we lately accomplished the belief of 100% management of our operations in Sweden. This now provides us full visibility into the prices of the build-out for an growth, and we will do it at a considerably decrease price than our preliminary facility constructed two years in the past.
From an working perspective, we’ve got additionally improved our mining effectivity and considerably lowered our working and upkeep prices in Sweden since we took management of operations. Moreover, mining market circumstances have improved since December.
CT: What’s your plan on your GPU mining operations when Ethereum transitions to proof-of-stake? Will you be diverting your GPUs to mining different cryptocurrencies?
FH: Whereas proof-of-stake, or probably different consensus mechanisms to return, might exist in parallel with the present customary — proof-of-work — we consider that mining will at all times play a elementary function.
The present proposal for Ethereum’s shift to proof of stake from proof of labor has quite a few unknown variables, together with uncertainty over timing, execution and supreme adoption; and there may be not but a definitive plan that’s established and accepted.
If Ethereum’s shift to proof of stake had been to happen, Hive’s GPU-based mining gives flexibility to establish and focus computing sources on present and new cryptocurrencies together with these utilizing the proof-of-work customary as they grow to be extra worthwhile to mine, in addition to for different high-efficiency computing functions, corresponding to synthetic intelligence and graphic rendering in addition to non-public blockchain computing, which have gotten extra widespread because the blockchain expertise grows and develops.
CT: What else can we count on from Hive throughout 2020?
FH: We’ll look to enhance the profitability of our Iceland facility as we’ve got executed in Sweden or transfer the tools to a lower-cost jurisdiction. Moreover, administration initiatives have resulted in a strengthened steadiness sheet and larger price certainty, which allows us to make acceptable investments to drive future development. We’re presently assessing growth alternatives and the very best use of our capital going ahead.