Pierre Enterprises Ltd. (OTCMKTS:PRELF) shot up in early trading today – and even had to be halted – because of some very interesting news. PRELF has entered into a deal with Genesis Mining meaning major expansion plans. This deal expands the company’s operations in Sweden significantly.
“Our new Bitcoin facility will be among the most energy-efficient and largest Bitcoin mining farms in Europe. This facility will complement our large-scale GPU-based facilities being built in Sweden and currently operating in Iceland, and allow us to diversify from mining GPU-driven consensus algorithms to also include SHA-256 consensus algorithms. Sweden, like Iceland, is an excellent jurisdiction for HIVE with its abundant cheap electricity, good governance, and cool climate.”
Pierre Enterprises Ltd. (OTCMKTS:PRELF) trumpets itself as a company building a bridge from the blockchain sector to traditional capital markets.
HIVE is strategically partnered with Genesis Mining Ltd., the world’s leading cryptocurrency mining hash rate provider, to build the next generation of blockchain infrastructure.
HIVE owns a state-of-the-art GPU-based cryptocurrency mining facility in Iceland, completed in May 2017, which produces mined cryptocurrency like Ethereum around the clock. HIVE has an option to acquire four additional facilities in Iceland or Sweden from Genesis. Genesis supports HIVE with data center infrastructure know-how and is HIVE’s largest shareholder.
According to company materials, “HIVE Blockchain Technologies Ltd. is a growth-oriented, TSX.V-listed company building a bridge from the blockchain sector to traditional capital markets. HIVE is strategically partnered with Genesis Mining Ltd. to build the next generation of blockchain infrastructure. HIVE owns state-of-the-art GPU-based cryptocurrency mining facilities in Iceland, which produce mined cryptocurrency like Ethereum around the clock.”
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According to the release, this major expansion will increase HIVE’s energy consumption dedicated to digital currency mining from a targeted 17.4 megawatts (“MW”) in March 2018 to 24.2 MW in April 2018, escalating to an expected 44.2 MW by September 2018, and will include: a new ASIC-based data centre in Sweden, with hardware procured and assembled by Genesis on behalf of HIVE for consideration of an estimated US$34 million and expected to come online in September 2018. The hardware will consist of the latest generation of Bitcoin mining rigs and will operate at an estimated rate of 200 petahashes per second (“PH/s”) and support an approximate consumption of 20 MW of electricity; and a third phase (additional 6.8 MW) of the Company’s previously-announced GPU-based data centre in Sweden, customized for mining GPU-based digital currencies (e.g., Ethereum), for consideration of an estimated US$22 million and expected completion in April 2018.
The Company is also pleased to announce a private placement financing of up to C$100 million, led by GMP Securities L.P. and Eventus Capital Corp., with a lead indication of C$50 million received. “The addition of Bitcoin mining capability further establishes HIVE as a leader in digital currency mining and diversifies our revenue with a highly liquid currency,” commented Harry Pokrandt, President, CEO and a Director at HIVE.
Earning a capital value in the market of $520.33M, PRELF represents an interesting play in the space and might be undervalued with its current portfolio. The company has added almost $200M in market cap since we last wrote about them – you need to have them on your radar. We will be updating readers with more news as the situation takes shape. Sign-up for continuing coverage on shares of $PRELF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $PRELF, either long or short, and we have not been compensated for this article.