Hive Blockchain revenue declines by 44% Y/Y despite overall mining production surge
Mining
In accordance with its second-quarter (ending Sept. 30) earnings presentation launched on Nov. 15, Vancouver-based digital belongings mining firm Hive Blockchain’s income declined by 44% yr over yr to $29.6 million. Throughout the identical interval, the corporate’s web earnings additionally decreased from $59.8 million within the prior yr’s quarter to a lack of $37 million.
Hive Blockchain’s web earnings was notably larger than its income in Q2 2022, as the corporate additionally acknowledged over $22 million value of beneficial properties on the Bitcoin (BTC) and Ether (ETH) it mined. Though the corporate didn’t undergo materials capital losses on cash in Q2 2023, it did, nevertheless, report a $26.2 million impairment expense to its mining rigs.
The corporate’s losses seem to have intensified although its Bitcoin mining capabilities have additional scaled. 12 months over yr, Hive Blockchain mined 31% extra BTC than in Q2 2022 for a complete of 858 cash, which nonetheless has extra worth after accounting for a 15.9% year-over-year decline in its ETH mining, which amounted to 7,309 cash within the quarter.
The general manufacturing enhance was attributed to the opening of the agency’s New Brunswick Bitcoin mining facility over the previous 12 months, which introduced over 17,300 application-specific built-in circuit (ASIC) miners on-line. Expressing his optimism in regards to the firm’s operations, govt chairman Frank Holmes commented:
“Strategically, we have now not borrowed costly debt towards our mining gear or pledged our Bitcoins for expensive loans, thus our stability sheet stays wholesome to climate this storm. We imagine our low coupon fastened debt; engaging inexperienced renewable vitality costs and excessive performing vitality environment friendly ASIC chips will assist us navigate by way of this crypto winter.”
Nonetheless, the corporate has warned of upper working bills going ahead as a result of record-high mining problem. At present, Hive Blockchain encompasses roughly 0.85% of the Bitcoin community’s hash fee. On the quarter’s finish, Hive Blockchain reported holding 1,116 BTC, value $48.4 million, and 25,154 ETH, value $74.7 million, on its stability sheet.
