Gold Miner Pivots: Backs Blockchain Company and Starts Mining Bitcoin
A Canadian mining guru, Frank Giustra, has begun mining bitcoin and other cryptocurrencies instead of just gold. He has recently backed a Vancouver Blockchain company, called Hive Technologies Inc., to oversee these mining operations and offer first-ever mining stock options.
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A Bloomberg article said, “The company he’s backed, Vancouver-based Hive Blockchain Technologies Inc., is among the first publicly traded stocks to provide exposure to crypto mining.”
Hive Shares Soar after Giustra Backs Them
After Giustra’s backing of the company and its foray into mining, the company’s shares have skyrocketed. They have moved upwards of around 633%, according to Bloomberg. The company now has a market value of $443 million. Hive’s CEO, Harry Pokrandt, mentioned how unique his company is in the space.
“We’re quite lucky to be first out of the gate. We’re a unique way to get into the space.”
Giustra helped get Hive into the spotlight via his previous businesses. He was the founder of Goldcorp Inc. and Lions Gate Entertainment Corp. The Bloomberg article went into further detail about Giustra:
He counts Bill Clinton and George Soros among his close pals. Those connections may position him to grasp a nascent corner of finance and navigate bitcoin’s uncertain regulatory waters.
Hive Pays Genesis Mining LTD; Hive May Spur More Mainstream Investment
After Gisutra brought Hive Technologies into the foray, they paid Hong Kong-based Genesis Mining LTD $9 million. They also gave them a 30 percent stake to acquire a new data center in Iceland, according to Bloomberg.
The article reads, “There, Hive plans to mine different cryptocurrencies, depending on which ones offer the best margins and build an inventory of coins on the expectation they’ll appreciate. Hive said it plans to buy a second Genesis data center next door for $5 million and has the option to buy more in Iceland and Sweden, cold countries which can keep power and cooling costs down.”
This venture into the bitcoin mining realm by Giustra and Hive Technologies could entice other mainstream investors to embrace cryptocurrencies. For legacy financial investors, there are plenty of ways to lure their clients into purchasing stock options for bitcoin and other digital currencies. However, other, more enterprising investors, may discover clever new ways to make money off of the nascent technology. The future is pregnant with a myriad of ways to capitalize on bitcoin.
What do you think about this gold miner pivoting? Will we see gold bugs and miners switching to bitcoin and crypto in the future? Let us know in the comments section below.
Images courtesy of Shutterstock and Vancouver Sun
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