Hive Blockchain Technologies (NASDAQ:HIVE), a company that mines Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and other cryptocurrencies, said on Monday it would buy Intel Corporation's (NASDAQ:INTC) high-performance chips.
What Happened: Vancouver, Canada-based Hive said it entered into a supply agreement revolving around Application-Specific Integrated Circuit (ASIC) chips with Intel. The company has also forged a manufacturing agreement that comes attached with an original design manufacturer (ODM).
With the deal, Hive said it expects to raise its aggregate BTC mining hashrate by up to 95% from 1.9 exahashes per second (EH/s).
“Intel's energy-efficient and high performance blockchain accelerator is expected to reduce our power consumption over current ASIC miners on the market,” said Hive President and COO Aydin Kilic.
See Also: How To Buy Intel (INTC) Shares
Why It Matters: Hive says it expects miners to be delivered over one year beginning in the second half of 2022.
“HIVE's engineering team will draw on its expertise in hardware and software implementation and will work closely with Intel and the ODM partner on the systems integration,” the company said.
In January, Hive announced it had purchased 6,400 Avalon next-generation miners from Canaan Inc (NASDAQ:CAN).
Last month, Intel said that Jack Dorsey-led Block Inc (NYSE:SQ) was one of the first customers for its “ultra-low voltage” “Bonanza mine” product.
Price Action: On Monday, Hive shares closed 7.3% lower at $1.65 in the regular session, and rose 0.6% in the after-hours trading. On the same day, Intel shares closed 0.8% lower at $47.68 in the regular session.
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