Hive Blockchain Technologies increases mining of Ethereum by 20%
- Crypto mining company, Hive, recently announced that it will expand its Sweden-based Ethereum mining operation by 20%.
- The company says that this is an opportune moment, and that it now has full insight into costs of mining and expansion.
- The firm's executive chairman, Frank Holmes, also spoke of concerns regarding ETH's transition to PoS, stating that, if it happens, the company will move on to mining new PoW cryptos.
Crypto mining firm Hive Blockchain Technologies recently revealed a new two-phase plan that would increase Ether mining at its Sweden-headquartered flagship GPU-based facility. The firm plans to increase the mining process by 20%, as it views the current situation as ‘an opportune time.’
The company’s facility in Sweden is hydro-powered, and the expansion will require capital expenditures of only around $200,000 per every extra megawatt of power. The cost increase also includes the additional hardware that the firm will need to perform crypto mining.
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However, considering that Ethereum’s transition to Ethereum 2.0 is coming and that it will bring Proof-of-Stake protocol, many are debating whether or not this is a smart move. The company’s interim executive chairman, Frank Holmes, spoke about it as well, in his recent interview. He noted that Hive owns several top-notch mining facilities in Sweden and Iceland, which continuously mine coins like ETH and ETC.
The majority of mining takes place in Sweden, however. Holmes also noted that the company recently completed the assumption of 100% control of the Sweden-based operations, which was a major factor in deciding to expand ETH mining operations there. The move allows the company full visibility into the costs of this expansion, as well as ways in which that cost can be lowered.
In addition, the firm had improved its mining efficiency, which further reduced the cost of maintenance and operating the facility in Sweden. As for Ethereum’s expected transition to PoS, or potentially other consensus mechanisms, he believes that mining will continue to play a vital role.
Hive will move on to other coins if and when ETH switches to PoS
There are some concerns, as the current proposal for Ethereum’s shift to PoS has numerous unknown variables, such as uncertainty regarding the timing, execution, and adoption since the project doesn’t have a definitive plan. But, when and if it does happen, Holmes says that Hive’s GPU-based mining is flexible enough to identify and focus computing resources on other cryptos, whether already existing or new. With many of them still using the PoW standard, they can be mined, and they are becoming more profitable.
In the future, the company also wishes to improve the profitability of its facility in Iceland, and make it as good as the one in Sweden, or relocate it to a lower-cost jurisdiction.