Genesis Mining allegedly attempts hostile takeover of the board of a publicly traded company

HIVE Blockchain Technologies, a publicly traded crypto mining company in Canada, demanded $50 million from Genesis Mining for alleged breach of contract.

In response, the largest cloud miner in the world was said to have attempted a hostile takeover of HIVE's board of directors.

Genesis Mining is the largest cloud mining provider in the world.

HIVE Blockchain Technologies is a publicly traded company listed on the Toronto Stock Exchange that develops mining infrastructure and runs mining facilities, similar to Genesis without the sales component.

Genesis Mining is the largest shareholder in HIVE, holding 26.3 percent of outstanding shares.

19, 2019, Genesis requested a meeting of HIVE's shareholder for the alleged purpose of removing the directors of HIVE's board.

The attempted takeover stems from Genesis alleged breach of contracts worth $50 million with HIVE. These contracts were possibly for hashing power from facilities located in Sweden.

As background to the dispute, HIVE also had mining contracts from Genesis.

"Discussions with Genesis for full disclosure of all costs for all mining operations have been ongoing since September 2018. We are frustrated that Genesis unilaterally gave notice of increased costs in Sweden and services have not been 'performed in a professional and workmanlike manner in accordance with the highest industry standards' as required It is disappointing that Genesis has reacted by attempting to eliminate the dispute by taking control of the HIVE board but I am confident that HIVE shareholders will understand that the meeting requisition is a blatant attempt to take control of HIVE for Genesis' sole benefit to the detriment of all other shareholders".

HIVE will have the right to terminate its agreement with Genesis and require the company to repurchase the company's mining equipment should the breach of contract go unremedied.