HyperBlock Inc. (CSE: HYPR) is pleased to provide an update on its ongoing operational reorganization and planned expansion, which includes the sale of non-core assets at one of its Canadian facilities.
Sale of Non-Core Assets On-Track
In February 2019, the company announced it had entered into a binding agreement (the “Agreement”) for the sale of non-core datacenter assets and related infrastructure. In addition to the sale of non-core datacenter assets for US$1 million, the Agreement provides the Buyer with the Option to assume operation of the facility (the “Facility”), and to transition services required to operate certain non-core datacenter assets at the Facility. The buyer has made all scheduled progress payments, the transaction is now expected to close, and the Option must be exercised by the Buyer, on or before June 30, 2019. A copy of the Agreement can be found at www.sedar.com
Datacenter Expansion Update
The Missoula County Commission recently passed emergency interim zoning regulations designed to regulate cryptocurrency mining datacenters. While attorneys for the company are working to gain a better understanding of some of the nuances of the regulations, they seem to place additional requirements on the methods and sources the company uses to purchase its electricity. The company is investigating whether such regulations are lawful and within the scope of the County’s jurisdiction. The practical effect of these regulations will likely be to postpone the company’s previously announced, and already begun, 20MW to 60MW datacenter expansion project. The company is investigating all of its options with the assistance of legal counsel, local community leaders and electric utility experts. The company is cautiously optimistic that the substantial investments it made that pre-date the interim zoning regulations mean the company’s rights to expand as intended are vested under applicable law.
HyperBlock continues to be committed to operating as sustainably as possible, purchasing electricity from a hydro-electric dam for its current 20MW Missoula datacenter — and employing advanced recycling technology to minimize environmental impact.
Deploying Working Capital Efficiently
Because of a crowded competitive marketplace, and in order to preserve working capital, the company has opted to discontinue further work on its custodial storage platform.