Hive Blockchain revenue declines by 44% Y/Y despite overall mining production surge
In keeping with its second-quarter (ending Sept. 30) earnings presentation released on Nov. 15, Vancouver-based digital belongings mining firm Hive Blockchain’s income declined by 44% 12 months over 12 months to $29.6 million. Throughout the identical interval, the corporate’s web earnings additionally decreased from $59.8 million within the prior 12 months’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 price of positive aspects on the Bitcoin (BTC) and Ether (ETH) it mined. Though the corporate didn’t endure materials capital losses on cash in Q2 2023, it did, nevertheless, document a $26.2 million impairment expense to its mining rigs.
The corporate’s losses seem to have intensified despite the fact that its Bitcoin mining capabilities have additional scaled. Yr over 12 months, 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 improve 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, government chairman Frank Holmes commented:
“Strategically, we’ve got not borrowed costly debt towards our mining gear or pledged our Bitcoins for pricey loans, thus our steadiness sheet stays wholesome to climate this storm. We imagine our low coupon fastened debt; engaging inexperienced renewable power costs and excessive performing power environment friendly ASIC chips will assist us navigate by way of this crypto winter.”
Nevertheless, the corporate has warned of upper working bills going ahead on account of record-high mining issue. At the moment, 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, price $48.4 million, and 25,154 ETH, price $74.7 million, on its steadiness sheet.
