San Antonio, Texas, Sept. 19, 2017 (GLOBE NEWSWIRE) --
U.S. Global Investors, Inc. (NASDAQ: GROW) is pleased to announce that it has entered into a strategic investment in HIVE Blockchain Technologies Ltd. (TSX.V:HIVE). U.S. Global Investors has exposure to 17 million shares of HIVE.
Frank Holmes, CEO and chief investment officer of U.S. Global Investors, has been appointed as the non-executive chairman of the Board of Directors of HIVE.
HIVE Blockchain Technologies Ltd. commenced trading on the TSX Venture Exchange under the ticker symbol “HIVE” effective at the open on September 18, 2017. This follows the completion of a $16.5 million equity financing, as announced on September 7, 2017, and the closing of the acquisition from Genesis Mining Ltd. (“Genesis”) of a state-of-the-art GPU-based blockchain data center in Reykjanes, Iceland and formation of a strategic partnership with Genesis (collectively, the “Transaction”), as announced on September 15, 2017. Genesis is the world’s largest cryptocurrency mining firm.
“According to CoinDesk, 28 of the top 30 banks are now engaging in blockchain proof of concepts. Goldman Sachs has even said that ‘the blockchain could disrupt…everything,’” Holmes said. “We are excited to be part of this unique opportunity in the cryptocurrency space and having a first-mover advantage in bringing it to investors. HIVE is creating new coins, with the goal of selling a portion of these and then banking the rest in order to manage this opportunity in a fast growth industry.”
HIVE commenced mining operations and began accumulating cryptocurrency on September 15, 2017 following closing of the Transaction.
“Blockchain technology has the potential to fundamentally change and lower transaction costs. HIVE’s partnership with Genesis provides immediate exposure to operating margins of crypto mining and a growing portfolio of coins. That makes this a unique global company out of the gate,” Holmes said. “In addition, the Economist reported that annual revenues earned by the banking system for processing payments were at $1.7 trillion in 2014, which was 2 percent of global GDP at the time. Bankers are moving fast to prevent disruptive technology from ‘Uber-izing’ their business, just as cab companies are fighting back against ride-hailing apps.”
Harry Pokrandt will serve as President, CEO and Director of HIVE, while Marco Streng, co-founder and CEO of Genesis Group, will be an advisor to HIVE. Joining Frank Holmes and Mr. Pokrandt on the Board of Directors is Bjoern Arzt, Tobias Ebel and Olivier Roussy Newton.
In the first quarter of fiscal year 2018, U.S. Global Investors, Inc., through its wholly-owned subsidiary, U.S. Global Investors (Canada) Limited (“USCAN”), purchased 10 million shares of HIVE (approximately $2.4 million USD). In addition, USCAN purchased shares of a fund managed by our 65 percent owned subsidiary, Galileo Global Equity Advisors, Inc. The Galileo Partners Fund purchased 7 million shares of HIVE. These shares are restricted and not available for resale until January 2018. U.S. Global Investors has approximately 15.2 million total common stock shares issued and outstanding.
For more information about HIVE, please visit www.HIVEblockchain.com.
About U.S. Global Investors, Inc.
The story of U.S. Global Investors goes back more than 40 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides money management and other services to U.S. Global Investors Funds, U.S. Global ETFs and other international clients.
This news release may include certain “forward-looking statements” including statements relating to revenues, expenses, and expectations regarding market conditions. These statements involve certain risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements.
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