Bitcoin Mining Company Hive Blockchain Announces 5-to-1 Stock Consolidation Plan
Bitcoin miner Hive Blockchain has announced plans for a 5-to-1 stock consolidation that will materialize around May 20.
The Canada-based company justified the move as a way to “add shareholder value” and bring the number of outstanding shares closer to industry norms, according to an announcement Wednesday. However, the company is still awaiting regulatory approvals.
“Talking to shareholders at the many conferences I have attended over the past 60 days, it is evident that some shareholders find it difficult to compare HIVE to its industry peers, as we have many more shares outstanding,” said executive chairman Frank Holmes.
At the time of the announcement, there were 411,209,923 common shares issued and outstanding and after consolidation this number is expected to decrease to 82,241,984.
Holmes also said the company’s relatively low price per share has been a barrier for some investors, arguing that consolidation would broaden the company’s profile.
The shares were at C$1.22 on the Toronto Stock Exchange and $0.92 on the Nasdaq, at press time.
“Even though HIVE has a higher market capitalization than many of our peers and stronger fundamentals, as measured by price-earnings ratios, revenue per employee and debt ratios, the increase in share price creates greater institutional visibility as many of their fundamental screens exclude stocks below $5 a share,” Holmes added.