Hive Digital, a Bitcoin mining company based in Canada, has secured $22 million in funding through the sale of special warrants.
The funding will be used to expand the company’s mining operations, which are currently located in Sweden and Iceland.
The funding round was led by Sprott Asset Management, a Canadian investment firm. Other participants included B.C. Collins and Luxor Partners.
The Offering consisted of the issuance of 5,750,000 special warrant units at a price of CAD$5.00 per Unit. Each Unit consists of one common share of the Company and one-half of one common share purchase warrant.
Each Warrant entitles the holder thereof to purchase one Common Share at a price of CAD$6.00 per Common Share for a period of 30 months from the closing date of the Offering.
The Offering was completed pursuant to a definitive agreement entered into on December 22, 2023, with the Agents. The Agents received a cash commission of 5.0% of the gross proceeds of the Offering.
The funding will fuel the expansion of Hive Digital’s Bitcoin mining footprint. New equipment and facilities will be acquired, adding muscle to the company’s operations and potentially boosting its hash rate, the measure of its mining power.
A portion of the proceeds will be allocated to working capital and general corporate needs, ensuring smooth operations and flexibility for future endeavors.
Importantly, Hive Digital remains committed to sustainable mining practices. The funding will allow them to further their green initiatives, with investments directed towards renewable energy sources and energy efficiency technologies.
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