HyperBlock, an operator of cryptocurrency data centers in North America, today announced it has secured up to USD $3,540,000 in financing as part of a three-year agreement that will allow the company to invest in additional Bitmain servers that are expected to increase HyperBlock’s maximum hashrate capacity.
Bank of Montana is the lender under the financing agreement and Bonner Property Development, LLC – the owner of the HyperBlock’s US datacenter facility – has provided a guarantee in respect of the company’s obligations.
The loan is to be repaid over three years at approximately 15 percent interest and, as consideration for the guarantee provided by Bonner Property Development, LLC, HyperBlock will issue warrants equal to 15 percent of the maximum principal amount of the loan divided by the warrant exercise price. The issuance of the warrants is conditional on the revocation of the cease trade orders in respect of the company’s securities and the resumption of trading of its common shares. The loan is effective as of January 9, 2020 and demonstrates ongoing support for HyperBlock from local Montana business community leaders.
HyperBlock confirmed that it intends to use the proceeds to place a new order for additional next-generation Bitmain bitcoin servers, which are scheduled for February 2020 delivery.
The HyperBlock team believes its ability to secure financing despite the ongoing volatility in cryptocurrency mining, is attributable to its strong operating fundamentals and strong business partner relationships. In 2019, HyperBlock began 16nm server replacement, and accepted the delivery of two next-generation Bitmain server orders.
Update on 2019 Quarterly Financials and CTO Status
HyperBlock expects to soon release its Q1, Q2, and Q3 2019 financials, management’s discussion and analysis and related officer certifications, together with any other filings required to bring its continuous disclosure record current. As previously announced, the company will apply to have the cease trade orders in respect of its shares revoked.
However, revocation is not expected to occur until the company’s outstanding continuous disclosure filings have been made and an order revoking the cease trade orders are issued and there can be no assurance that the cease trade orders will be revoked.